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

Using Xero to your advantage

Xero has built-in artificial intelligence (AI) to help you record your bank transactions faster. When you open the Reconcile tab, you will see that Xero has used its AI to populate the right column with matches and suggestions based on the machine learning engine that runs within Xero. These transactions will appear in green; I will refer to these as greenlit transactions:

Figure 6.15: The Reconcile tab

Figure 6.15: The Reconcile tab

Xero will push out transactions that are auto-matched by amount first, then by bank rule, and then auto-suggestions based on previous reconciliations. This helps cut down the time to fully reconcile your bank transactions.

As shown in Figure 6.15, you will see two auto-match transactions. My suggestion is to look at the dates, and if the dates are reasonable, they should be a match. Click the OK button in the center column to accept each entry. Keep in mind that Xero will be able to match based on the amount, so if there...