How To Use Xero Accounting Software 13-Step Guide

xero tutorial

Float is one of the highest-rated Xero apps available on the marketplace. It is an award-winning cash flow forecasting tool that creates accurate and visual reports for you, and your business. Float pulls through the bills and invoices from your accounting software, using them to populate your forecast on a rolling-basis. Float’s integration with Xero means no more manual data entry, and an always up-to-date and accurate forecast. Only set up payment reminders when you get into the habit of reconciling receipts daily.

With a clear picture of your cash comes the ability to make better business decisions and avoid falling behind on outstanding payments. If you have an accountant, you can seek their help with this decision. However, if you are your own bookkeeper then we recommend using Xero’s default chart of accounts. You can add, customise, or delete these accounts to match the needs of your business.

xero tutorial

Learn basic reports

With a larger variety of payment options, it is easier for customers to pay you. Complete these lessons to record business transactions and maintain your financial data regularly. This course is for small business owners, accountants, and bookkeepers who are starting to use Xero for the first time.

Enjoy the freedom to do business wherever you are with easy access to many Xero tools. Prepare to run payroll for the first time by setting up your organisation and your employees in Xero. Create professional-looking invoices every time, then send automated reminders if invoices are overdue. Invite your accountant or bookkeeper to work with you in Xero and you’ll be across the same up-to-date figures.

Add new users at no extra charge

Finally, if you work with one, ask your accountant to check your set up. They may need to add year-end conversion balances and can ensure that your year-to-date figures are as expected. Using Xero’s wide range of apps and add ons is a great way to streamline repetitive processes and save yourself some time.

Manage employee pay with ease

The payroll overview is a comprehensive guide to take you through each step of the setup. receipt definition You should reconcile weekly, if not daily, to ensure that your accounts are as accurate as possible. If you have a limited company, ensure that you have a registration number and registered office address.

  1. Initially, when you’ve input some data, look at your Balance Sheet, Profit And Loss, Aged Receivables, and Aged Payables.
  2. They may need to add year-end conversion balances and can ensure that your year-to-date figures are as expected.
  3. Create professional-looking invoices every time, then send automated reminders if invoices are overdue.
  4. Invite your accountant or bookkeeper to work with you in Xero and you’ll be across the same up-to-date figures.
  5. Prepare to run payroll for the first time by setting up your organisation and your employees in Xero.
  6. As Xero is connected to your bank, transactions are pulled through automatically.

Chasing payment from customers that have already paid can tarnish your reputation. You can come back to this step once daily reconciliation is part of your routine. Send online invoices and give customers easy online payment options that encourage them to pay there and then.

Complete these lessons to learn how to customise and complete essential settings to get you started on Xero correctly from the outset. We recommend working with your accountant to bring account balances from your old system into Xero as conversion balances. Give your business partners and admin staff access to Xero to keep them informed how to use financial reports to calculate the number of days in accounts payable and to share the workload. Initially, when you’ve input some data, look at your Balance Sheet, Profit And Loss, Aged Receivables, and Aged Payables. This function allows you to keep payroll costs in one place rather than having to pull in information from a separate system.

An accountant or bookkeeper who knows Xero can take care of the tricky stuff while you focus on running your business. Have a current view of your finances with your bank transactions flowing into Xero automatically. You also need to link to any active payment services to your Xero account.

Setting up payment reminders and organising your credit control systems can help you to get paid faster. If you are transferring payroll from another system in the middle of the financial year – don’t forget to add the opening balances. Just additional paid in capital a few minutes a week spent approving pre-matched items ensures your data is up to date. As Xero is connected to your bank, transactions are pulled through automatically. Xero remembers the last time you categorised a transaction, so you can simply click ‘OK’ if you want it to go to the same category. If your business has employees, payroll in Xero makes it easy to keep pay records and get pay runs sorted.