When you’re scaling a product business, it’s easy to assume your finance system “just works.”
But if you’ve ever felt like the numbers in Xero don’t quite match what’s happening in the business - you’re not alone.
In most brands we step into at Evolve, the root cause is usually a combination of set-up gaps and inconsistent bookkeeping and together, they make it hard to trust the numbers.
A few incorrect settings or missing integrations can create hours of manual work, inaccurate reporting and poor decisions.
Here’s what a good finance system setup should look like, and the signs yours might need attention.
Your Chart of Accounts tells the right story
If your chart of accounts looks like a novel - lots of lines, duplicate expense categories and random supplier-specific accounts - that’s a red flag.
A long, detailed list doesn’t mean accuracy; it means confusion. And if you’re splitting out suppliers or creating accounts for each type of marketing or freight expense, your reporting will be too granular to read.
A good setup:
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Is concise, clear and reflects how you actually run the business.
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Separates sales by channel (eCommerce, Marketplace, Wholesale).
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Groups cost of sales into clear buckets — product, freight, duties, packaging and separates them by sales channel.
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Consolidates operating costs under logical headings (marketing, resourcing, logistics, finance).
The goal is that you can open your P&L and instantly understand what’s going on - no decoding needed.
2. Your systems actually talk to each other
If you’re manually importing CSVs or re-keying invoices, it’s time to check your integrations.
Your finance system should act as the hub - not the whole machine.
For most product businesses, that means:
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Shopify → Xero via A2X or similar.
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Inventory system → Xero (Cin7, Unleashed)
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Expense management → Xero (Dext, Hubdoc, Airwallex).
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Payroll → Xero (Employment Hero or Xero payroll module).
When these are properly linked, revenue, costs and inventory flow automatically - giving you real-time visibility without the manual re-work.
3. COGS are accurate and consistent
This is where most product businesses go wrong.
If your cost of goods sold (COGS) looks lumpy or unpredictable month to month, it’s usually because duties, freight, packaging and product costs aren’t being recognised when incurred.
That’s effectively cash accounting - where costs are recorded when paid, not when the stock is sold and it distorts your gross profit margin.
A good setup:
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Groups all landed costs (product, freight, packaging, duties) under cost of sales or direct costs.
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Recognises COGS when the product is actually sold, not when purchased.
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Keeps your gross margin smooth and meaningful - not spiking up and down each month.
When this is done properly, your P&L becomes a true reflection of business performance, not a timing game.
4. Reporting feels insightful, not confusing
If you find yourself saying “I don’t really trust these numbers,” something’s off.
Your reports should make decisions easier, not add another layer of confusion.
Good reporting looks like:
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Clear monthly dashboards or management reports.
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Channel-level visibility on sales and profitability.
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Trends that make sense - not sudden jumps that need explaining every time.
When your data is clean, you can focus on insights that actually drive growth.
5. You have one version of the truth
If your accountant, bookkeeper and internal team are all working from different spreadsheets, that’s your sign.
A proper finance setup means everyone uses the same source of data, in real time. That’s when your finance system starts to feel like a strategic asset, not a burden.
A strong finance setup isn’t about being fancy - it’s about building clarity, consistency and control.
When your systems are clean and your bookkeeping is aligned, you can finally trust your numbers and use them to make better decisions.
At Evolve Consultancy Group, we help founders audit and rebuild their finance stack, from Xero setups to inventory integrations, so the numbers actually make sense.
Because when your systems run smoothly, your decisions get sharper and growth feels a whole lot simpler.
