Complete these lessons to record business transactions and maintain your financial vs managerial accounting financial data regularly. Complete these lessons to learn how to customise and complete essential settings to get you started on Xero correctly from the outset. Click on the small dropdown arrow next to your company name in the upper left corner of the dashboard, and then select Settings from the dropdown list, as shown below.
Set up your chart of accounts
Xero offers apps with a wide range of functionalities from cash flow forecasting, to document management, and many more. Initially, when you’ve input some data, look at your Balance Sheet, Profit And Loss, Aged Receivables, and Aged Payables. This course is for small business owners, accountants, and bookkeepers who are starting to use Xero for the first time.
Connect apps
- If you are switching from another accounting software, then you can import your chart of accounts into Xero, or modify the default chart of accounts.
- If you’re new to Xero, then this guide to getting started should help you quickly get up and running.
- Float pulls through the bills and invoices from your accounting software, using them to populate your forecast on a rolling-basis.
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- Xero remembers the last time you categorised a transaction, so you can simply click ‘OK’ if you want it to go to the same category.
Xero remembers the last time you categorised a transaction, so you can simply click ‘OK’ if you want it to go to the same category. Nailing down your terms of payment can help you to improve your cash flow. On the Chart of accounts page, click on the Add Account button to access the account creation form.
The currencies added can be used for transactions with vendors or clients operating in those currencies, and Xero will automatically manage the conversion for you. The user will receive an email with the invitation to join your organization and set up their access based on the role and permissions you’ve granted them. On the Organization settings page, you’ll find several options to customize your company.
Also, you can upload your company logo, which will appear in your sales and purchase forms. When you scroll down, you’ll also find a section to update contact information, including your company address, email, and phone number. On the Chart of accounts page, click on Import, and indicate whether your file includes balances. Also, since you’re using a Xero accounts template, leave Xero as the system you’re importing from.
The email address you send the invite to will be the user’s login email address. Setting up payment reminders and organising your credit control systems can help you to get paid faster. You also need to link to any active payment services to your Xero account.
Tutorial 1: How to Set Up Your Company in Xero
You can add, customise, or delete these accounts to match the needs of your business. Then, under On when and why are consolidated financial statements necessary importing an existing contact (not shown in the image), select Be ignored so that empty fields will be ignored. Click Next, review the information you’re importing, and then click Complete Import. You can add new contacts either by adding them manually or importing them into the system.
Chasing payment from customers that have already paid can tarnish your reputation. You can come back to this step once daily reconciliation is part of your routine. Regularly updated invoices give you a clearer picture of cash flow. With a clear picture of your cash comes the ability to make better business decisions and avoid falling behind on pro forma financial statements definition outstanding payments. If you have an accountant, you can seek their help with this decision. However, if you are your own bookkeeper then we recommend using Xero’s default chart of accounts.