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

When to use Fresh Start

Before we get into when to use the FS method, let’s discuss what it is. FS is the easiest, cleanest, and quickest way to set up Xero. You load the balances from the last known good period and roll with it from there. You set up your bank feeds and balance them. We will get into the details of exactly how we accomplish this later in this chapter.

You have your Xero company set up for use. Now, you have the decision of how you want to get the data from your old system into Xero. You should go into this process with this decision before you sign up and set the software’s settings, as we did in the previous chapter.

Looking back, you either have a brand-new business and are ready to proceed from this point, or you have an existing business, and you kept your books on something other than Xero, such as QuickBooks, used a spreadsheet, or you didn’t keep books at all and worked from bank statements.

Using a spreadsheet or bank statements...