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

Reconciling that account

Now that the transactions have been reconciled, it is time to complete the bank reconciliation process. Xero makes this easy:

  1. Start by viewing or downloading your most recent bank statement. Note the ending date on the statement, as well as the ending balance:
  Figure 6.20: Banking header

Figure 6.20: Banking header

  1. Click on Reconciliation Report under the date on the right-hand side near the top of the bank account screen. This will open the Bank Reconciliation screen.
  2. Enter the date from the bank statement and click Update.
  3. Review the statement balance from the Bank Reconciliation screen against the ending balance of the bank statement. If they match, you are good.
  4. Export your reconciliation report and save it to your document management system, along with the statement:
Figure 6.21: The Bank Reconciliation screen

Figure 6.21: The Bank Reconciliation screen

  1. If your balance does not match, you need to put in some elbow grease. First...