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Xenon Connect targets messy bookkeeping data

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A practice owner has built a pre-accounting tool that cleans up general ledger software errors and provides financial insights for accountants and bookkeepers.

7th Jun 2023
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Founded by Gareth Salomon, managing director of Enhance Accountancy in Wrexham, Xenon Connect’s core product, Xenon Exact, extracts data from Xero or QuickBooks Online and runs 20 different checks on common errors found in bookkeeping data.

Similar to Dext Precision (formally Xavier), Xenon’s tool checks issues such as unreconciled bank activity, duplicate items, old unpaid bills or invoices, or if unexpected accounts or tax codes have been used: 

A screenshot of the Xenon Exact overview page
Xenon Connect

If an issue is found in the data, it is flagged for users to drill down into the specific problem, with an explainer box provided. The reviewer can then amend the data in Xenon and push the correction back to the general ledger software via a two-way API.

A Bookkeeping Health percentage score is also assigned to benchmark clients’ data quality and show businesses and their advisers what they need to do to improve that data. Calculated automatically, the health score is based on the quantity and importance of the bookkeeping data issues found within the client’s organisation.

Accountants and bookkeepers have access to a dashboard (below), where they can monitor all client data, scores and activity from one screen without having to click around. 

A screenshot of Xenon Connect's adviser dashboard or client panorama
Xenon Connect

Salomon told AccountingWEB that Xenon Connect has been running for just over two years, scaling it up by gradually adding more functionality. The tool is now used by more than 100 accounting practices.

“When I was training as an accountant, I spent a long time sifting through nominal reports or ledgers looking for issues. It was like picking out needles in haystacks,” said Saloman. “This gives advisers better-quality bookkeeping data faster.”

The software’s data-cleansing capabilities can also banish “garbage in, garbage out” issues from other tasks performed by advisers. In forecasting, for example, more accurate data is likely to lead to more accurate predictions.

Start client conversations earlier

In addition to its data checking and cleansing tool, the software also has a suite of nine financial KPIs called Xenon Insight that highlight the current performance and position of a business and detects areas that may require attention.

The insigt screen (below) includes KPIs such as directors’ loan account position, profitability and dividend availability, and also provides an as-live corporation tax estimate and a cash health check.

A screenshot of a Xenon Insight page
Xenon Connect

Alert notifications can also be created when various conditions surrounding the business financials require attention. for example when the client’s sales data suggests that they are approaching the VAT registration threshold.

“With Xenon Insight we’re trying to start those ‘Why didn’t you tell me about this?’ client conversations earlier,” said Saloman. “With questions such as ‘How much can I take out as dividends?’ our users can look at current profit estimates to give a more accurate answer. 

“All this relies on the underlying data being right, which is why we rely on Xenon Exact first,” he added. 

One aspect of the tool that some firms have found helpful is its ability to assist with client billing and reproposal conversations. 

With a growing number of firms choosing to charge by transaction levels, Xenon Connect can pull out the average number of transactions with a breakdown. 

Full details for Xenon Connect are available on the vendor’s website, with pricing starting from £20 a month plus VAT for bookkeepers and accountants managing up to five clients. The vendor has a lifetime trial offering of one client licence per practice for free to allow firms to try out the tool before committing.

Xenon Connect currently syncs with Xero and QuickBooks Online but is hoping to announce partnerships with Sage and FreeAgent imminently.

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By roshodgson
08th Jun 2023 18:44

I like the idea of this, which is similar to the functionality of Dext Precision or the clean up area in Syft Analytics. These tools can be useful to review client data before you take them on, but also as month-end/ year end aid to get the bookkeepers to verify the quality of the data before sending for review. I've checked the price model like the fact that the pricing scales by quantity only and not by features. It can sometimes feel that the best of software is withheld from smaller firms. Will take it for a spin!

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