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

Assigning report codes

Report codes are codes used to assign the chart of accounts to a report line in the report template. Report codes are embedded in the chart of accounts for each Xero organization.

So, to assign report codes, follow these steps:

  1. Go back to your favorite Xero company and click on Settings, followed by Advanced Accounting settings.
  2. Next, click on Report Codes.
Figure 17.10: The Report Codes main screen

Figure 17.10: The Report Codes main screen

  1. Here, you will see three tabs, similar to the other sections in Xero. We are in the For Review tab, as these are codes that have not yet been assigned a detailed code and must be set, allowing the code to be mapped to lines in the report template. As shown in Figure 17.10, your chart of accounts will have an associated account type, along with a report code and a shortcut code.
  2. By looking at the report codes, you will see that the demo company is mapped to the highest level. Let’s correctly map Savings...