Book Image

Efficient Accounting with Xero

By : Jay Kimelman
Book Image

Efficient Accounting with Xero

By: Jay Kimelman

Overview of this book

Xero empowers business owners to gain insights into their business and performance and collaborate seamlessly with their accountants and tax professionals. This book goes beyond the basics and explores the more advanced Xero features, techniques, and best practices for managing sales taxes, budgeting, and reporting. You’ll begin by diving right into Xero, setting up a bank feed, and exploring its power while experiencing just how easy it is to use. The book will guide you in setting up Xero the right way to ensure that you succeed in each of your transactions. As you progress through the chapters, you’ll learn what spend money and receive money transactions are and be able to easily send invoices and collect receivables or payments, collect and pay bills, and even track your business assets with Xero. Toward the end, you’ll be proficient at producing powerful reports, giving you the keys to running or advising any business. By the end of this Xero book, you’ll have gained the confidence to add a company to Xero, set up the bank feeds, reconcile the transactions, send invoices, and pay bills, ending up with beautiful financial statements.
Table of Contents (27 chapters)
1
Part 1: Hitting the Ground Running
7
Part 2: Handling the Day-to-Day Processes
12
Part 3: Closing Out the Accounting Period
16
Part 4: Reporting – Knowing About the Performance of Your Business (KPIs)
18
Chapter 14: Business Analytics with Business Snapshot and Short-Term Cash Flow
20
Part 5: For the Advisor

Exploring the Purchase Order

Just as we discussed in the last chapter, you may or may not use or need to use Purchase Orders (POs). If you run a cash-based business and just pay all your bills directly, you probably do not need to use a PO or process Accounts Payable (AP) invoices. The PO, when submitted to a supplier or vendor, is your commitment to purchase a specified good for service at the specified price. You can indicate terms for payment as well, and if the supplier accepts the PO, they have committed to providing the goods or service at the requested price and terms.

By using the PO in Xero, you are using the system, and the items within it, to maintain consistency throughout Xero and your general ledger, as well as adding a level of tracking and approvals for your purchasing.

Let’s dive into the PO feature in Xero:

  1. Let’s start by clicking on Business in the main menu, followed by Purchase orders from the drop-down menu.
Figure 8.1: The Purchase orders menu option
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