Bookkeeping in Xero
Xero accounting software is a simple and easy platform to do bookkeeping for small to mid-size businesses. If you want to use it, you have to follow all these simple steps.
Xero file Setup:
The first step to getting started with the setup up a Xero account and enter your company information. This step includes filling in your company’s financial year information, selecting sales tax settings, setup time zones, selecting your business’s transaction category and etc. You can also check out our following list of requirements to set up a Xero file.
Setup bank feeds in Xero:
This is the most important step to maintain the financial data in Xero of your business. This step includes entering your bank details and set up bank statements. There are around three types of bank feeds in Xero, which are Direct, Yodlee and PayPal feed.
Upload bills in Xero:
This process allows entering bills in Xero and Xero provides two different ways to do this. First, you can enter, edit, or create bills in Xero or you can also have the option to import your bills using the template file provided by Xero.
Xero allows you to enter invoices for sales or you can also easily import from various sales software. You can set up details invoice-related information like payment terms with other companies, branding invoices, adjusting outstanding bills and etc.
Matching transactions with the bank feeds:
With this step, you have to check and match the debit and credit transactions of income and expense with your bank statements; so you can ensure you have paid your expenses and have received the number of your invoices.
Reconciliation of bank statement:
Bank statement reconciliation ensures that your bank statement reconciles with the transactions that you have occurred during a financial year. The main aim of this step is that you analyze and match the bank statement with the recorded transactions in the Xero software which will ultimately help you eliminate any errors.
Adjustment is done at the year-end:
The last step for doing bookkeeping in Xero is to add year-end adjustments. We include tax liability, accruals, work in progress, depreciation, loans, sales tax adjustments, etc. in the year-end adjustments.
So finally, bookkeeping in Xero is too simple and time-saving, you can operate it from anywhere and that’s what makes it helpful for businesses.