All our customers know that, with our online bookkeeping service, there is no expensive software to purchase initially and updates happen automatically, however, it still creates a thrill when we can announce updates which are not only completely free-of-charge but also so helpful for all our users.
At StressFree Bookkeeping we pride ourselves on listening to our customers and so we are delighted to be able to announce the arrival of one of our most requested features: a super-easy way to account for and refund overpayments in just a few clicks. Another great addition is the functionality to take prepayments; getting paid early is great for your bank balance and paying people early keeps business relationships nice and smooth.
Here is a brief prepayment explanation for the uninitiated. A company may pay for goods and services before they have been received. Any amounts that have been paid for goods and services not received by the end of the accounting period are shown in the balance sheet as prepayments. These amounts will not be shown as costs in the Profit and Loss. When the goods or services are received, then the amounts will be passed through the Profit and Loss and deducted from the prepayments section of the balance sheet. This is necessary to accrue the costs.
Wow that was deep! So that was the detailed explanation, however, at StressFree Bookkeeping we understand you want to enjoy running your business and spend time doing what you are good at – the bookkeeping is a necessary evil. Suffice to say that now when Xero users receive a prepayment or deposit from a customer, Xero automatically ensures it is correctly accounted for. Then, when you do raise an invoice, you will automatically be asked if you want to apply the prepayment. The same goes for prepayments you send to suppliers. To see how it works, watch the video below: