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

Balancing the bank feed

We started the bank feed on July 1, 2001, as we stated earlier. Let’s assume we are going to use the Fresh Start conversion method (which we will dive deeper into in Chapter 4). For now, let’s just reconcile the bank feed to the bank balance as of today:

  1. We need to compare the bank balance per the bank website:
Figure 2.12: The bank balance per the bank website

Figure 2.12: The bank balance per the bank website

We go to the bank website, and access the data we need.

Figure 2.13: The bank balance per Xero

Figure 2.13: The bank balance per Xero

  1. Since we started the feed transactions on July 1, we need the bank balance as of June 30. We have that, as shown here:
Figure 2.14: The prior month-end statement balance

Figure 2.14: The prior month-end statement balance

  1. So, as stated previously, we will cover the Fresh Start conversion in Chapter 4, but here, we need to add the June 30 balance of $3,467.92 to the conversion balance for the checking account.

Note

The conversion...