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

Creating manual journals

We start by clicking the New Journal button. This will allow us to create a standard one-time or one-off journal entry. If we wanted to create a recurring or repeating entry, we could click the New Repeating Journal button. We will get to the differences in the creation soon, but let’s move forward with the one-off entry.

Figure 11.3: Manual journal screen

Figure 11.3: Manual journal screen

Let’s walk through the fields of the manual journal as shown in Figure 11.3:

  • All entries must have a Narration field, which is the description of the entry.
  • Date is the date on which you are posting the journal to the G/L.
  • Auto Reversing Date is the date you want this entry to post an automatic reversal of the original entry you are creating. You would use this on a payroll accrual, for example.
  • Default narration to journal line description – I always remove that check from the box. Leaving it will push the narration to the description...