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

Cash coding

Cash coding allows you to reconcile transactions in bulk by utilizing an Excel-like grid. You can sort the columns that have blue headers by clicking on the header. In the following screenshot, I have sorted it by Payer. You can see that Central City Parking is highlighted. When you have multiple lines and you want to record the same, you need to check the checkbox to the left of the line. If your transactions are adjacent to each other as Central City Parking is, check the checkbox at the top end of the section, hold down Shift, and click the last transaction in the section. Xero will select all of the transactions in that range. Now, you can type in any one line and each of the transactions will be changed to reflect the entry you just made. Ensure you have the appropriate payer and add your account code and tax code. Once you have that information, you can click Save & Reconcile Selected at the bottom.

Here are some tips: work in small batches. Record the transactions...