This is a guest post by Yaali Bizappln Solutions.
A lot of businesses manage their customers and finances on separate platforms. This disconnect often leads to missed invoices, incorrect tax calculations, and duplicated data, and businesses become vulnerable to costly accounting mistakes.
As soon as deals start rolling in your CRM, there are payments, invoices, and taxes to track. That’s where things can get complicated. Using a CRM for customer relationships and an accounting platform separately creates a gap. And that gap? It’s where errors happen.
Here are five critical accounting mistakes you can easily avoid.
Mistake #1: Manual data entry errors
One of the biggest mistakes businesses make is relying on manual data entry for accounting. Mistakes are bound to creep in when you’re inputting financial data by hand. Typos, missing numbers, or even a misplaced decimal can cause major accounting issues. This process is also slow, heavily affecting productivity. Needless to say, nothing slows down accounting teams like entering data into two different systems, such as your CRM and accounting platforms.
Mistake #2: Mismatched customer records
Maintaining consistent customer records between your CRM and accounting software is crucial. Without data synchronization, you end up creating duplicate customer profiles or having mismatched records, leading to discrepancies in invoicing and payment tracking.
Mistake #3: Disconnected customer and financial information
Many businesses struggle with having their customer and financial data separated. When your CRM and accounting software can’t communicate, it creates information silos. Sales teams might not know about unpaid invoices or a customer's credit status. This can lead to awkward moments with clients.
Tracking invoices manually in different systems makes it tough to know what’s owed. As a result, you might miss payment deadlines or send out incorrect invoices. This can throw your cash flow off-balance and frustrate your clients.
Mistake #4: Lack of visibility across sales and accounting teams
Your sales and accounting teams are like two sides of the same coin—they need to work closely together, but often they’re working in silos. Sales teams may have access to customer insights in the CRM, but they may not have visibility into a customer’s payment status. Similarly, finance teams may struggle to keep track of deals being closed or agreements being made.
Mistake #5: Inconsistent currency management
When you’re working with multiple currencies, keeping track of exchange rates can be a real headache. If your Zoho CRM isn’t set up to handle these fluctuations, you could end up with wrong invoices, mixed-up reports, or even overcharging or undercharging clients.
To make sure your business runs smoothly and efficiently, it's essential to avoid these five accounting mistakes. This is possible with a clear view of your financial data right next to your customer data, where you no longer have to hunt for invoices or second-guess tax numbers.
If your business relies on Zoho CRM for managing customer relationships and Xero for accounting, the Xero for Zoho CRM extension seamlessly connects the two platforms, allowing you to sync data from Xero (invoices, products, and contacts) into Zoho CRM (invoices, products, and accounts).
This powerful extension ensures that your sales and customer data in Zoho CRM are automatically updated with the corresponding financial information from Xero. Additionally, this process is automated, saving you time and eliminating the risk of accounting blunders.
Try the Xero for Zoho CRM extension.
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