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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Learn how to maximize value and increase efficiency in Xero with basics and best practices Xero: A Comprehensive Guide for Accountants and Bookkeepers is a how-to guide for Xero's US-based advisors. Xero is rapidly gaining traction as an accounting and bookkeeping software, as competitors' strategic changes have left professional advisors looking for an alternative. The rapid adoption of cloud technology by businesses has left many accountants and bookkeepers in need of a guide to quickly gain the Xero skillset. This book covers all features available in the Established subscription plan in Xero. You'll walk through the technical details of how to take advantage of everything Xero has to offer. In addition to introducing you to the basics of using Xero, this book provides best practices that will help you streamline bookkeeping workflows and leverage this cloud-based accounting platform. Author Amanda Aguillard also connects the dots between accounting theory and the Xero interface and features, so you will understand exactly why you're doing what you're doing. In today's cloud computing world, we need all our tech tools to play nicely together, and this book delivers on that goal, showing you how to integrate Xero to your other software for seamless operation. * Master Xero's interface and features--specific for the US version of the software * Learn how to integrate Xero with other cloud-based software * Discover best practices that can help you maximize the value you get from using Xero * Access the companion website, full of templates for reports, invoices, bills with payments, and more Xero: A Comprehensive Guide for Accountants and Bookkeepers , along with its companion website, is your one-stop resource for becoming fluent in the features and functionalities of this global accounting software platform.
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Veröffentlichungsjahr: 2021
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Table of Contents
Cover
Title Page
Copyright
Foreword
Preface
Using This Book
Accessing Digital Resources
Disclaimers
Acknowledgments
About the Author
Chapter 1: Introduction to Xero
Working in the Cloud
Xero's Security Protocol
Choosing the Right Subscription
Xero's Partner Program
Basic Accounting and Nomenclature
Notes
Chapter 2: Leveraging Xero within an Ecosystem
A Primer on APIs
Xero as Part of a Cloud Accounting Ecosystem
Understanding Client Needs
Layering Applications
Samples of Niche Ecosystems
Note
Chapter 3: Xero HQ
Overview of Xero HQ
Accessing Xero HQ
Editing User Profile
Account Settings
Activity
Client
Explorer
Reports
Ask
Staff
Practice
Chapter 4: Navigating through Xero
Accessing the Xero Organization
General Tips
Dashboard
Business Tab
Accounting Tab
Projects
Contacts
Quick Add (+)
Search
Notifications
Help
User Profile
Other Features and Apps under the Organization Name
Chapter 5: Creating a Xero Organization
Creating a Xero Organization from Xero HQ
Converting from Other Systems
Chart of Accounts
Manually Entering Conversion Balances
Adding Invoices and Bills
Adding Fixed Assets
Importing Conversion Balances on Chart of Accounts
Comparative Balances
Chapter 6: Settings
Organization Settings
Advanced Settings
Chapter 7: Contacts
Navigating the Contacts Screen
Contact Fields
Adding Contacts
Editing Contact Details
Merging Contacts
Archiving Contacts
Contact Groups
Smart Lists
Chapter 8: Inventory
Adding Inventory Items
Editing Inventory Item Details
Importing Beginning Balances
Managing Inventory Balances
Deleting or Inactivating Items
Chapter 9: Banking and Bank Feeds
Overview of the Bank Accounts Screen
Bank Accounts
Bank Feeds
Importing Bank Statements
Managing Bank Statements and Statement Lines
Chapter 10: Bank Reconciliation
Overview of Bank Reconciliation Screen
Posting Transactions to the Bank Account
Reconciling Bank Transactions
Discuss Tab
Bank Rules
Cash Coding
Reconciling a Stripe Feed
Optimal Workflow for Bank Reconciliation
Errors in Bank Coding and Matching
Chapter 11: Sales and Invoicing
Overview of Sales
Viewing the Invoice Listing
Creating an Invoice
Sending Invoices Electronically
Managing Invoices
Applying Payments to Invoices
Batch Deposits
Credit Notes
Repeating Invoices
Group Invoices
Quotes
Managing Customer Credit
Sending Customer Statements
Sending Customer Receipts
How Sales Tax Is Handled on Invoices
Viewing Invoice History and Notes
Bulk Importing Invoices
Invoices from Third-Party Sales Systems
Workarounds for Sales Integrations
Invoicing for Billable Expenses
Handling Returned or NSF Checks
Chapter 12: Purchases and Bills
Overview of Purchases
Viewing the Bill Listing
Creating a Bill
Billable Expenses
Creating a Bill from a File
Managing Bills
Credit Notes
Repeating Bills
Managing Repeating Bill Templates
Purchase Orders
Creating Purchase Orders
Bulk Importing Bills
Payments
Managing Checks
Editing Checks
Expense Claims
Chapter 13: Fixed Assets
Overview of Fixed Assets
Accessing the Fixed Asset Module
Setting Up the Fixed Assets Module
Adding Fixed Assets
Depreciation
Disposing Fixed Assets
Reconciling the Asset Subledger
Depreciation Reports
Chapter 14: Multicurrency
About Multicurrency
Creating a Foreign Currency Transaction
Chapter 15: Advanced Tools
Manual Journal Entries
Find and Recode
Assurance Dashboard
History and Notes
Exporting Accounting Data
Chapter 16: Reporting
Overview of Reporting
Generating Reports
Editing Report Layouts
Editing Transactional Reports
Saving Custom Report Layouts
Publishing Reports
Exporting Reports
Leveraging Key Reports
Chapter 17: Month-End Reconciliation
Reconciliation Report
Understanding the Reconciliation Report
Reconciling Credit Card Accounts
Identifying Errors in the Reconciliation Report
Verifying Timing Difference Lines
Reviewing the Month's Coding
Locking Dates
Month-End Reconciliation Process
Chapter 18: Advisory Tools
Short-Term Cash Flow
Business Snapshot
Business Performance
Budget Manager
Chapter 19: Xero Expenses
Setting Up Xero Expenses
Reimbursable versus Nonreimbursable Claims
Submitting Expense Claims
Submitting Mileage Claims
Approving Expense and Mileage Claims
Paying Expense and Mileage Claims
Understanding the Company's Expense Claims
Chapter 20: Xero Projects
Setting Up Xero Projects
Overview of the Projects Dashboard
Creating a Project
Duplicating a Project
Creating a Quote for a Project
Adding Time to Project
Adding Expenses to a Project
Invoicing Projects
Viewing Reports
Profitability Dashboard
About the Website
Index
End User License Agreement
List of Illustrations
Chapter 2
FIGURE 2.1
FIGURE 2.2
FIGURE 2.3
FIGURE 2.4
FIGURE 2.5
Chapter 3
FIGURE 3.1 Description: Xero HQ does not have a Dashboard in the way that Xe...
FIGURE 3.2 Description: Below, you can enter or edit Basic Information, Cont...
FIGURE 3.3 Description: It is also where you can change your login preferenc...
FIGURE 3.4 Description: Enter either a Number of Transactions to code or Days sin...
FIGURE 3.5 Description: Alerts of both types will appear in the same Activit...
FIGURE 3.6 Description: The Clients tab is where your client listing is mana...
FIGURE 3.7 Description: The Customise columns link allows the user to change...
FIGURE 3.8 Description: To add a note, use the Add a note link at the top of...
FIGURE 3.9 Description: The Activity section of the client record shows aler...
FIGURE 3.10 Description: Choose the group.
FIGURE 3.11 Description: The Apps screen shows a graphical representation of...
FIGURE 3.12 The Industry screen shows a graph of client industries. (Figure ...
FIGURE 3.13 The Banks screen shows a graph of client banks.
FIGURE 3.14
FIGURE 3.15 Select the Export button. (Figure 3.15) Xero will download a .csv fil...
FIGURE 3.16 Select the code you wish to associate with the account, using the arr...
FIGURE 3.17 In the Practice Logo section, use the Browse button to select the fir...
FIGURE 3.18 Click +New Client Field or + New Practice Field.
FIGURE 3.19 Enter the client-specific text in the space provided and click Save &...
FIGURE 3.20 Use the New Template pulldown to select Copy from.
FIGURE 3.21 Use the +Add report link to access a list of reports that can be adde...
FIGURE 3.22 At the top of the report template is a pulldown listing the cont...
FIGURE 3.23 To remove a report from the template, use the X that appears on ...
FIGURE 3.24 Use the Insert Field pulldown on the right to select the field to ins...
FIGURE 3.25 Click the green New query button at the top right.
FIGURE 3.26 Click Save and continue.
FIGURE 3.27 Select Templates at the top left.
FIGURE 3.28 To see a dashboard of your practice, navigate to the Practice ta...
FIGURE 3.29 The Partner Status tile on the Practice tab lets you know what l...
FIGURE 3.30 There is also a link to Change country or edition. To practice, ...
FIGURE 3.31 Xero also calculates a conversion percentage which represents th...
FIGURE 3.32 At the time of writing, there are ten preset charts of accounts,...
Chapter 4
FIGURE 4.1 When you log into a client file or organization, you will land on...
FIGURE 4.2 The bank and credit card account tiles provide a snapshot of the ...
FIGURE 4.3 The same menu is found in several places in Xero and will be expl...
FIGURE 4.4 Typical uses for this include clearing accounts or due to or from...
FIGURE 4.5 There is also a graphical representation of invoices or bills by ...
FIGURE 4.6 There is also a graphical representation of invoices or bills by ...
FIGURE 4.7 A relatively new feature in Xero, Short-term cash flow gives an o...
FIGURE 4.8 Business snapshot is a limited dashboard of preset metrics embedd...
FIGURE 4.9 The Bank accounts screen will show all of the bank and credit car...
FIGURE 4.10 To edit the features listed in this shortcut, navigate to the Re...
FIGURE 4.11 In the upper right of the screen, you will see a + icon. This me...
FIGURE 4.12 Global search, represented by a looking glass, allows users to s...
FIGURE 4.13 To manage notifications, use the Settings link at the bottom of ...
FIGURE 4.14 The question mark icon at the top right of the screen links to a...
FIGURE 4.15 Xero has a simple file box embedded in the software. (Figure 4.1...
Chapter 5
FIGURE 5.1 Use the Add client pulldown at the top right to access New client. ...
FIGURE 5.2 On the right, click the Connect to Xero button.
FIGURE 5.3 Click Import.
FIGURE 5.4 Xero will show a summary of the changes, including new, updated, delet...
FIGURE 5.5 Select +Add account.
FIGURE 5.6 The Add New Account screen will list the required and optional fields ...
FIGURE 5.7 If a bank feed does not exist, you will see a message that Xero could ...
FIGURE 5.8 Click the Delete or Archive button above the list of accounts.
FIGURE 5.9 Some special types of accounts in Xero are restricted in editing ...
FIGURE 5.10 Enter the conversion date by selecting the Conversion Date button. ...
FIGURE 5.11 Xero shows the conversion date that will correspond with the beginnin...
FIGURE 5.12 Click the Show all accounts link to show every general ledger account...
FIGURE 5.13 When conversion balances are finalized, check the box at the bot...
FIGURE 5.14 Enter the accounts receivable or accounts payable general ledger bala...
FIGURE 5.15 Use the +Add Bill or +Add Invoice button to enter one or more invoice...
FIGURE 5.16 Click the Import button at the top of the screen.
FIGURE 5.17 Select Yes for Does the file you are importing contain account balanc...
FIGURE 5.18 Select Conversion balances.
Chapter 6
FIGURE 6.1 At the top of the screen, you may see a banner (Figure 6.1) regar...
FIGURE 6.2A Select the level of access the user requires
FIGURE 6.2B Select the level of access the user requires
FIGURE 6.2C Select the level of access the user requires
FIGURE 6.2D
FIGURE 6.3 Use the pulldown menu to Select a currency.
FIGURE 6.4 Xero organizations have one standard theme template by default. E...
FIGURE 6.5 Use the pulldown next to the organization name and navigate to Setting...
FIGURE 6.6 Click the Download button to download a .zip file with Word templates ...
FIGURE 6.7 Next, customize the downloaded .doc file
FIGURE 6.8 Default settings is where payment terms and document numbering ar...
FIGURE 6.9 Check the box next to Email customers when an invoice is
FIGURE 6.10 Choose whether to send a reminder email if the invoice is overdu...
FIGURE 6.11 Click +Add email address to add the address of another person or a sy...
FIGURE 6.12 Add additional fields by using the Insert placeholder pulldown ...
FIGURE 6.13 In general, preprinted check stock already shows the company logo, co...
FIGURE 6.14 Click the Edit button and paste the key in the Xero Network Key field...
FIGURE 6.15 Provide the Tax ID Number and Tax ID Display Name. Note that Xero doe...
FIGURE 6.16 Under Tax Components list the name of the first component of the rate...
FIGURE 6.17 Under Category options, list the labels or options you need for the c...
Chapter 7
FIGURE 7.1 The Contacts screen is accessed by navigating to Contacts, then A...
FIGURE 7.2 On the left are filters, groups and Smart Lists. In a new Xero or...
FIGURE 7.3 Groups are custom lists of selected contacts set up by a user
FIGURE 7.4 Use the contact form to enter details about the contact and click Save...
FIGURE 7.5 Click the Import button at the top of the screen
FIGURE 7.6 The Contacts import screen is similar to the other import screens you ...
FIGURE 7.7 Contact details are easily edited in Xero. You can view a contact...
FIGURE 7.8 Open the contact you wish to edit by clicking the blue contact name. T...
FIGURE 7.9 Type the contact you wish to merge with in the Find a contact to merge...
FIGURE 7.10 Use the Options pulldown to select Archive
FIGURE 7.11 Click the Restore button in the top right
FIGURE 7.12 On the left, click the blue New link next to the Groups header. ...
FIGURE 7.13 Use Options pulldown to select Add to Group
FIGURE 7.14 Create the Query by modifying the existing conditions or adding addit...
Chapter 8
FIGURE 8.1 Enter a unique Item Code. This can be an abbreviated name or standard ...
FIGURE 8.2 Enter a unique Item Code. This can be an abbreviated name or standard r...
FIGURE 8.3 Enter a unique Item Code
FIGURE 8.4 Use the Edit item button at the top right to access the item’s editabl...
FIGURE 8.5 Use the Import pulldown at the top right to select Opening Balances ...
FIGURE 8.6 Use the Options pulldown to access New adjustment
FIGURE 8.7 Select Mark as Inactive or Delete
Chapter 9
FIGURE 9.1 The Bank accounts screen has a series of buttons across the top, ...
FIGURE 9.2 One of the most useful reports for communicating with clients is ...
FIGURE 9.3 Xero shows two balances on the bank account tile: Statement Balan...
FIGURE 9.4 The Reconcile # items button shows how many bank lines are uncode...
FIGURE 9.5 The Manage Account pulldown is the main list of maintenance and s...
FIGURE 9.6 Checking the box to the left of Show account on Dashboard will ad...
FIGURE 9.7 If your bank does not appear on the list, there is no bank feed availa...
FIGURE 9.8 If an account is created for a bank with a feed, there will usual...
FIGURE 9.9 On occasion, a bank feed will break. This could be from a lapse i...
FIGURE 9.10 Use the Manage Account pulldown in the top right of the bank account ...
FIGURE 9.11 Click the Browse button and select the financial data file.
FIGURE 9.12 On the right, download the template file.
FIGURE 9.13 Xero will attempt to map the statement columns to the appropriate fie...
FIGURE 9.14 A precoded bank statement is a .csv import file with all of the ...
FIGURE 9.15 The statement is imported using the same method as above. Be sur...
FIGURE 9.16 When these lines are imported, you will see a notification that ...
FIGURE 9.17 They will appear in the Account Transactions tab as reconciled t...
FIGURE 9.18 All statement lines are shown in the Bank statements tab within ...
FIGURE 9.19 In the Statement lines screen, the columns represent fields of t...
FIGURE 9.20 To delete one statement line, such as in the case of a duplicate...
FIGURE 9.21 If a statement line was deleted in error, it can be restored by ...
FIGURE 9.22 In the Statements screen, the Imported date will be the date tha...
FIGURE 9.23 To delete an entire statement, such as in the case of a statemen...
Chapter 10
FIGURE 10.1 When you navigate to a bank account in Xero, you are directed to...
FIGURE 10.2 At the top, the bank account name is shown in blue with a pulldo...
FIGURE 10.3 Two bank balances are shown, Statement Balance and Balance in Xe...
FIGURE 10.4 The Manage Account button on the top right will allow you to eas...
FIGURE 10.5 Reconcile- The Reconcile tab (Figure 10.5) is for coding and rec...
FIGURE 10.6 Cash coding- The Cash coding tab (Figure 10.6) reformats unreconciled...
FIGURE 10.7 Bank statements- The Bank statement tab (Figure 10.7) shows all bank ...
FIGURE 10.8 Account transactions- The Account transactions tab (Figure 10.8) list...
FIGURE 10.9 A spend or receive money transaction can be created in two ways....
FIGURE 10.10 A spend or receive money can also be generated without a bank l...
FIGURE 10.11 Choose the bank account the deposit will be made to.
FIGURE 10.12 Enter the details of the deposit.
FIGURE 10.13 Spend and receive money transactions will remain unreconciled u...
FIGURE 10.14 Enter the From and To accounts, along with Date, Amount and Referenc...
FIGURE 10.15 Scroll to the bottom of the screen and enter details in Receive a pa...
FIGURE 10.16 On the Dashboard, Xero makes it clear how many unreconciled ite...
FIGURE 10.17 One of the most efficient methods of bank reconciliation in Xer...
FIGURE 10.18 If Xero recognizes that more than one general ledger line is th...
FIGURE 10.19 This feature is turned on by default in Xero organizations. To ...
FIGURE 10.20 To create a transaction that is more complex, use the Add detai...
FIGURE 10.21 Click the Assign expenses to a customer (or Assign expenses to a cus...
FIGURE 10.22 Confirm that the correct customer or project is shown to the right o...
FIGURE 10.23 To show general ledger transactions in the opposite direction o...
FIGURE 10.24 Find the invoices that have been paid and select by checking the box...
FIGURE 10.25 Complete the fields to create a new transaction for the merchant fee...
FIGURE 10.26 Change the Received as pulldown to Overpayment.
FIGURE 10.27 Xero will populate the amount with the difference between the deposi...
FIGURE 10.28 Under the Awaiting Payment tab, open the Overpayment. The overpaymen...
FIGURE 10.29 At the bottom of the screen, enter the Date and the bank account tha...
FIGURE 10.30 Change the Received as pulldown to Prepayment.
FIGURE 10.31 Notice that a Split link appears in the invoice line. Click this lin...
FIGURE 10.32 A new screen appears showing the full invoice amount and the deposit...
FIGURE 10.33 Select the subordinate card in the To Account pulldown. Use the Date...
FIGURE 10.34 The Discuss tab is the fourth tab on the bank reconciliation ti...
FIGURE 10.35 The first step in identifying which rules should be created in ...
FIGURE 10.36 Select the Options pulldown at the top of the bank transaction tile....
FIGURE 10.37 Select the Bank Rules button.
FIGURE 10.38 For example, if a company wants to code transactions from a par...
FIGURE 10.39 Many bank rules will be set to code the entire amount of a tran...
FIGURE 10.40 In some cases, you may want to divide the transaction amount be...
FIGURE 10.41 At the end of the year, we would make an adjusting journal entr...
FIGURE 10.42 By allocating the base membership fee to Dues & Subscriptions i...
FIGURE 10.43 By targeting a specific credit card account, and therefore user...
FIGURE 10.44 For example, instead of Young Bros., use Young Bros.- Travel so...
FIGURE 10.45 To reorder bank rules, click and drag the rule lines in the Ban...
FIGURE 10.46 When all lines are highlighted, enter an account in the Account colu...
FIGURE 10.47 As in reconciliation in the Reconcile tab, a bank rule can be d...
FIGURE 10.48 This will allow for proper matching of invoices or recognition ...
FIGURE 10.49 When the reconciled line is found, open the transaction by clicking ...
FIGURE 10.50 It is important to understand the infrastructure behind banking...
FIGURE 10.51 Use the Options pulldown to access Edit Transaction.
FIGURE 10.52 Use the Options pulldown to access Remove & Redo. The spend or recei...
FIGURE 10.53 Xero provides a confirmation screen that this action will break the ...
Chapter 11
FIGURE 11.1 At the top of the screen are a few useful buttons.
FIGURE 11.2 In Sales, there are four categories of invoices which are repres...
FIGURE 11.3 Below the invoices graphic are two charts. (Figure 11.3) The fir...
FIGURE 11.4 The next section on the overview screen is Quotes. (Figure 11.4)...
FIGURE 11.5 Most of the management of receivables will happen in the Awaitin...
FIGURE 11.6 Use the Send pulldown to choose what happens with the invoice. ...
FIGURE 11.7 If you wish to attach files to the invoice, either for internal ...
FIGURE 11.8 Xero will show a preview of the email.
FIGURE 11.9 Use the Invoice Options pulldown to access Edit.
FIGURE 11.10 Select Invoice and type the contact name in the Create it for field....
FIGURE 11.11 Click Add Payment.
FIGURE 11.12 The payment and payment date will be noted under the invoice am...
FIGURE 11.13 In the Awaiting Payment tab of Invoices, select the invoices paid in...
FIGURE 11.14 Click Deposit.
FIGURE 11.15 The batch deposit will now be listed in the Account Transaction...
FIGURE 11.16 Click Approve.
FIGURE 11.17 Use the +New pulldown to access Credit Note.
FIGURE 11.18 If there are multiple outstanding invoices for the contact, Xero wil...
FIGURE 11.19 To delete a repeating template, select the box to the left of t...
FIGURE 11.20 Use the New Invoice pulldown to choose a group under the subheading ...
FIGURE 11.21 Click Create draft invoices at the bottom left. (Figure 11.21) There...
FIGURE 11.22 Xero will redirect you to the Draft tab in the Invoices screen, wher...
FIGURE 11.23 If desired, use the +Add a Title & Summary link to add text that wil...
FIGURE 11.24 Use the Options pulldown to either Mark as Accepted or Mark as Decli...
FIGURE 11.25 Click the green Create Invoice button at the top of the quote. ...
FIGURE 11.26 Choose whether or not to block sending invoices past credit limit in...
FIGURE 11.27 Customer credit limits can be viewed in Contacts on the right s...
FIGURE 11.28 Click the Send Statements button.
FIGURE 11.29 To send a customer receipt at the time a payment is applied, us...
FIGURE 11.30 Use the Options pulldown and select Send Receipt.
FIGURE 11.31 To view the activity on an invoice, open the invoice by selecti...
FIGURE 11.32 If desired, a custom Note can be added at the bottom of the inv...
FIGURE 11.33 If an invoice contains more than one line, be sure that the inv...
FIGURE 11.34 Like the unpaid invoice, a fully paid invoice will include line...
FIGURE 11.35 In most cases, payments posted to non-bank accounts are sent to...
FIGURE 11.36 When an invoice is created for a customer to whom a billable ex...
FIGURE 11.37 To add the expense, click the blue link and use the checkboxes ...
Chapter 12
FIGURE 12.1 There is detailed information about these features further in th...
FIGURE 12.2 Just as In Purchases, there are four categories of bills, which ...
FIGURE 12.3 Below the bill categories is a chart that shows Upcoming bills. ...
FIGURE 12.4 The next section on the overview screen is Purchase orders.
FIGURE 12.5 Most of the management of payables will happen in the Awaiting P...
FIGURE 12.6 Enter the bill details in the table below.
FIGURE 12.7 Xero will open side-by-side screens of the bill image and the bill in...
FIGURE 12.8 Use the Bill Options pulldown to access Edit.
FIGURE 12.9 Use the Bill Options pulldown to access Void.
FIGURE 12.10 Navigate to the Business tab, then Purchases Overview.
FIGURE 12.11 Use the +New pulldown to access Credit Note.
FIGURE 12.12 If there are multiple outstanding bills for the contact, Xero will p...
FIGURE 12.13 Use the Delivery Address pulldown to add a separate delivery address...
FIGURE 12.14 Select Bill and check the box next to Mark this purchase order as bi...
FIGURE 12.15 Edit the bill details, changing the quantity of items ordered to ref...
FIGURE 12.16 Select Invoice and click Create draft. Xero will create a draft invo...
FIGURE 12.17 To update the formatting of a style, use the Options pulldown o...
FIGURE 12.18 Paper type refers to whether the check stock is preprinted or b...
FIGURE 12.19 Many advisors in the United States will need to uncheck the Com...
FIGURE 12.20 Check the Pay by check box.
FIGURE 12.21 In the next screen, confirm the check number and payee. Add a memo i...
FIGURE 12.22 Click Add Payment.
FIGURE 12.23 Click the Make Payment button at the top of the listing.
FIGURE 12.24 Select Pay By Check.
FIGURE 12.25 If a supplier does not have an address saved in the contact record, ...
FIGURE 12.26 The Amount field will be for the full amount of the bills chosen to ...
FIGURE 12.27 If a handwritten check is a payment for a multi-line bill, use ...
FIGURE 12.28 You will see a notification screen summarizing the number of bills t...
FIGURE 12.29 Click the Export button at the top.
FIGURE 12.30 Use the checkbox to the left of the line to select the check and cli...
FIGURE 12.31 To view all of the activity on the bill, select the Show Histor...
Chapter 13
FIGURE 13.1 Only Fixed assets is included in the default favorites menu. Vie...
FIGURE 13.2 Use the Start Date pulldown to select from the available options. ...
FIGURE 13.3 Set the Book Depreciation Default fields. These are the variables use...
FIGURE 13.4 Map each of the gain or loss types to the general ledger accounts to ...
FIGURE 13.5 Click Register.
FIGURE 13.6 Click Register.
FIGURE 13.7 Use the Options pulldown at the top right to select Copy.
FIGURE 13.8 Click the Import button.
FIGURE 13.9 Click the Register button at the top of the listing.
FIGURE 13.10 Click Confirm at the bottom of the screen.
FIGURE 13.11 Choose a date to Rollback to.
FIGURE 13.12 Use the Options pulldown to select Dispose.
FIGURE 13.13 If the summary is correct, click Review Journals.
FIGURE 13.14 Any differences will need to be corrected. Generally difference...
FIGURE 13.15 To view the details of depreciation expense posted to the syste...
Chapter 14
FIGURE 14.1 Before approving the transaction, use the currency pulldown to select...
FIGURE 14.2 The exchange rate at the time the transaction will be shown on t...
Chapter 15
FIGURE 15.1 There are a series of tabs for different categories of journal e...
FIGURE 15.2 Select Save as draft to save the entry for further review or Post to ...
FIGURE 15.3 Click the Delete button at the top of the listing.
FIGURE 15.4 Navigate to the Posted tab and check the box to the left of the entry...
FIGURE 15.5 The voided entry will now be listed in the Voided tab.
FIGURE 15.6 Use the Journal Options pulldown to select Edit.
FIGURE 15.7 Click the +New Repeating Journal button at the top of the screen. ...
FIGURE 15.8 Click Save.
FIGURE 15.9 When searching using the Bank Account criteria, Xero will show a...
FIGURE 15.10 Click the Find and recode button and search for transactions using c...
FIGURE 15.11 Use the Recode pulldown to access Recode source transactions. ...
FIGURE 15.12 Xero will create a draft offsetting journal entry, using a default d...
FIGURE 15.13 The user activity tab shows a tile for each user with a heatmap...
FIGURE 15.14 Each line in the listing will show the transaction details, but...
FIGURE 15.15 The User pulldown allows you to filter by the user who initiate...
Chapter 16
FIGURE 16.1 The Reports screen can be accessed by navigating to Accounting, ...
FIGURE 16.2 To include or remove a report from the selection under Accountin...
FIGURE 16.3 At the top of the report, the date (or date range) can be changed by ...
FIGURE 16.4 To add comparative periods to the report as columns, use the Comparis...
FIGURE 16.5 The Filter button allows you to filter the report data for only speci...
FIGURE 16.6 The gear icon allows further customization of the report.
FIGURE 16.7 The report layout editor in Xero allows you to completely custom...
FIGURE 16.8 At the top of the screen are icons to add or modify sections of ...
FIGURE 16.9 Another thing to note on this screen is that each component of t...
FIGURE 16.10 It is not obvious in the report layout editor, but columns and ...
FIGURE 16.11 Text blocks can be added to reports for narratives or lists. Th...
FIGURE 16.12 Click the Add Accounts button to choose which accounts to include on...
FIGURE 16.13 Type the footer copy in the space provided.
FIGURE 16.14 Add accounts to the group by dragging the accounts and dropping unde...
FIGURE 16.15 With the column selected, use the Date Range pulldown to select the ...
FIGURE 16.16 On the right, use the pulldown to select which category options shou...
FIGURE 16.17 The process for editing transactional reports is slightly diffe...
FIGURE 16.18 Use the Save As pulldown to select Custom.
FIGURE 16.19 If you wish for the customized report to replace the standard versio...
FIGURE 16.20 Use the overflow menu at the right of the custom report to select Re...
FIGURE 16.21 Use the Save As pulldown at the bottom of the screen to select Publi...
FIGURE 16.22 Enter a title in the space provided.
FIGURE 16.23 To archive or delete a report, navigate to the Published tabs i...
FIGURE 16.24 The Export pulldown at the bottom of a report offers three choi...
Chapter 17
FIGURE 17.1 Click Update.
FIGURE 17.2 The Balance in Xero line.
FIGURE 17.3 Plus Outstanding Payments.
FIGURE 17.4 Less Outstanding Receipts.
FIGURE 17.5 Plus Un-Reconciled Bank Statement Lines.
FIGURE 17.6 Statement Balance.
FIGURE 17.7 The Bank Statement tab is Xero’s replication of the statement is...
FIGURE 17.8 The Statement Exceptions tab shows any anomalies or outliers in ...
FIGURE 17.9 Use pulldown at the bottom to choose a file export type. It is genera...
FIGURE 17.10 In the Reconcile tab, use the Options pulldown in the top right of t...
FIGURE 17.11 Use the Options tab to select either Unreconcile or Remove & Redo. ...
FIGURE 17.12 Select Enable Mark as Reconciled.
FIGURE 17.13 Use the More pulldown above the transactions listing to select Mark ...
FIGURE 17.14 Use Report Settings to select Layout Group By Account Code. This wil...
FIGURE 17.15 Use the report to check each line for the correct coding. If a ...
Chapter 18
FIGURE 18.1 The Short-term cash flow dashboard (Figure 18.1) projects cash f...
FIGURE 18.2 The Business snapshot dashboard (Figure 18.2) shows business own...
FIGURE 18.3 Business performance graphs (Figure 18.3) in Xero show many of t...
FIGURE 18.4 At the top of the screen are the settings for the creation of a ...
FIGURE 18.5 This arrow is shortcut that will allow Xero to enter figures for...
FIGURE 18.6 Use the Download template pulldown to select either .csv or .xls form...
Chapter 19
FIGURE 19.1 The first step in establishing expense claim settings is to choo...
FIGURE 19.2 The next step is to select the general ledger accounts that shou...
FIGURE 19.3 Select any bank or credit cards that this user will have access ...
FIGURE 19.4 Give labels names related to trips or projects to help keep clai...
FIGURE 19.5 In the upper right, choose Save draft to finalize later, Submit to se...
FIGURE 19.6 Use the + icon at the bottom of the screen, then select Expense claim...
FIGURE 19.7 Choose either Save for later or Add details now. If you choose Save f...
FIGURE 19.8 Find the expense claim to be edited and use the overflow menu at the ...
FIGURE 19.9 Xero will calculate the reimbursement in the company’s base currency....
FIGURE 19.10 Use the + icon at the bottom of the screen, then select Mileage clai...
FIGURE 19.11 Manually enter the distance or click the Use map link to calculate t...
FIGURE 19.12 Tap Save.
FIGURE 19.13 When expense and mileage claims are submitted by a user for app...
FIGURE 19.14 When a claim is approved, it will be moved from the To review t...
FIGURE 19.15 A spend money line is posted to the bank account and will be ma...
FIGURE 19.16 Xero allows users to see expense claim history graphically by e...
Chapter 20
FIGURE 20.1 Choose the level of access needed.
FIGURE 20.2 The Staff cost rates screen lists all staff and their cost per h...
FIGURE 20.3 Use the overflow menu in the top right to access Projects settings. ...
FIGURE 20.4 Navigate between projects by using the tabs at the top of the sc...
FIGURE 20.5 Click Create.
FIGURE 20.6 Use the Add pulldown at the top right to select Task.
FIGURE 20.7 Click Save to save and close the new task, or Save & add another to s...
FIGURE 20.8 Click Save.
FIGURE 20.9 Use the Quote pulldown to select Project amount.
FIGURE 20.10 Review and make any changes in this screen. When the quote is ready ...
FIGURE 20.11 Use the checkboxes to select which Tasks and Estimated Expenses will...
FIGURE 20.12 Click Save.
FIGURE 20.13 Select the Time entries icon at the bottom of the screen.
FIGURE 20.14 Enter a total Duration or use Start & end to have Xero calculate the...
FIGURE 20.15 Use the Add pulldown to select Expense.
FIGURE 20.16 Use the + icon at the top to Add expense.
FIGURE 20.17 Enter the expense details and click Save.
FIGURE 20.18 Assign the expense to the project using the Search for a customer or...
FIGURE 20.19 Confirm that the expense is assigned in the Description field. ...
FIGURE 20.20 Save or Approve the bill.
FIGURE 20.21 Use the Invoice pulldown to select Quote.
FIGURE 20.22 Choose whether to invoice a percentage of the estimated project cost...
FIGURE 20.23 A draft invoice appears in the Invoices screen of Xero. Complete any...
FIGURE 20.24 Choose whether time on the project should be invoiced as a total for...
FIGURE 20.25 Select the Profitability tab at the top of the screen.
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Additional Praise for Xero: A Comprehensive Guide for Accountants and Bookkeepers, U.S. Edition
“Yes, Amanda is an expert in Xero, but she is a generous expert. If she couldn't do backflips inside the software, she could not as generously share her knowledge. She has offered so much support to countless new bookkeepers it is no wonder that so many follow in her footsteps and build a firm on Xero. The bookkeeping world has been begging for a resource like this and it couldn't have been written by anyone else.”
—Kate Josephine Johnson, Owner of Heritage Business Services and Author of The Bookkeeping Side Hustle Guidebook
“As I was starting out with Xero, Amanda was super supportive of my journey, always available to answer questions, and always knowledgeable of Xero features. She's still one of my main go-to resources when it comes to all things Xero.”
—Trinity Scott, Owner and Chief Technologist of T3 Bookkeeping
XERO
A Comprehensive Guide for Accountants and Bookkeepers
U.S. Edition
Amanda Aguillard
Copyright © 2021 by John Wiley & Sons, Inc. All rights reserved
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Foreword
Amanda Aguillard was one of the first partners to reach out when I arrived in the United States nearly four years ago from New Zealand, where cloud adoption is high and Xero is a household name. She was an early adopter of Xero and has been, and continues to be, a huge advocate for our brand among the advisor and small business community. We instantly connected.
Our mission at Xero is simple—to make life easier for small businesses. And how we do that is through our powerful cloud-based accounting software platform that connects small businesses and their advisors with information they need to monitor financial performance. There's a massive opportunity for Xero to grow, together with our partners, by helping small businesses. Our goal isn't to be the biggest in the United States. Instead, we aspire to be the most trusted and insightful.
It takes more than just great technology to serve small businesses. It's a combination of technology excellence and the human element, and that's where Amanda shines. She knows Xero products inside and out and has trained the full range of Xero users, from brand-new sole proprietors all the way to Big Four international firms. Amanda is one of our most vocal champions, but also one of our biggest critics; she isn't afraid to tell us what we need to do better. She has built a successful practice and is at the vanguard of a changing profession, challenging us to deliver excellence to the small businesses we serve.
We're honored and thrilled that Amanda is writing about her success with Xero in the United States. As you read this book, I have no doubt you'll channel Amanda's passion and take away many best practices on how to utilize the Xero platform with your firm and your clients. While it is still the early days for widespread cloud adoption in the accounting industry, the global pandemic has helped to accelerate the shift from physical to virtual. We're at the end of the beginning in the United States and will be debuting new product features throughout 2021. We hope that Amanda's book will inspire you to join us on that journey!
Ben Richmond
Country Manager, United States, for Xero
Preface
In 2012, I found myself divorced with two small children. As those things go, it was half surprise and half expected. I knew I had a short runway to recrafting some kind of career after not working since the birth of my son seven years earlier. I had experience in public accounting, having done time at Deloitte & Touche, and in my last job before my son was born, had earned the role of controller of a large company in New Orleans at age 26. Given the demands of both of those positions, neither seemed reasonable for a newly single mom to kids aged seven and eight.
Over the next few years, I cobbled together some freelance work, inadvertently building an accounting firm. I had little faith in the longevity of this path, but I was fiercely committed to using cloud-based software for as long as it lasted. Turns out, Aguillard Accounting, LLC is still alive and kicking nine years later.
As I taught myself the ins and outs of browser-based accounting software and addons, I realized that there was a whole population of accountants that did not yet understand the power and freedom of the cloud. Half seriously (and half as a way to write off travel with my best friend,) I co-founded Elefant, LLC, a training company for advisors. Our mission is to help accountants and bookkeepers leverage technology to build their dream practices. I hold this close to my heart because it was technology, and specifically Xero, that allowed me to build an accounting firm from my guest bedroom as a single mom to two children.
Back in 2012, I had no idea what a significant part Xero would play in my life. At that time, Xero was hardly known in the United States, but I was immediately drawn to it. The interface was clean, the logic simple, and the framework cutting edge—build a really good general ledger and allow small businesses and their advisors to craft the perfect ecosystem through application programming interfaces (APIs).
As I have become a writer, trainer, and sometimes counselor on all things accounting tech, I have been pushed to learn more about other, more popular, cloud-based general ledger systems. Inevitably, I get frustrated by functionality stuck anywhere it may fit and often catch myself muttering, “I don't know how people live like this.” Time and time again, I come back to the safe space of Xero and let out a sigh, knowing this is how beautiful accounting should be.
Using This Book
This book covers features available in the Established subscription plan in Xero. If you cannot access features or modules, you may be in a lower subscription plan. Unless otherwise noted, any instructions on accessing functions will begin from the organization's Dashboard.
This is a technical guide to the use of accounting software. Because of the nature of the book, I do my best to use consistent terminology throughout. The word account refers to a general ledger line or category, not a bank account. Bank account is used to refer to checking, savings, or credit card accounts held at banks or other financial institutions. Invoice is used to refer to a document for collecting revenue from customers, and bill is used for noting a payment due to vendors.
Accessing Digital Resources
This book also includes digital resources. See About the Website for the link and password.
Disclaimers
This book is an effort to provide a comprehensive instructional and reference guide for the U.S. version of Xero. Since Xero is a true cloud-based software application, it is regularly updated. As such, some updates may have taken place since the writing of this book. This book makes an effort to explore the features in Xero in detail, but again, recent improvements may not be reflected.
This book is not meant to teach bookkeeping or accounting theory and assumes a basic level of accounting knowledge. Many features discussed herein are available only at the Advisor level of user access or as a certified Xero Partner.
Acknowledgments
Although I have created lots of accounting content in the last several years, this book has been one of the toughest projects I have ever taken on. It would not have been possible without the support, guidance, and positive energy of so many people. I am humbled and grateful to many beautiful souls for helping manifest one of my greatest dreams, to become a published author, including:
My two children, Avery and Jack, for their patience during this writing and without whom I never would have stretched and found my wings, and their father, for his graceful support in co-parenting, during the writing of this book and also the past 10 years.
My parents, who are unfailingly supportive of everything I do and who have taught me to work hard, ignore others' opinions, and do the right thing.
Monica Fontenot, my partner in Elefant and best friend of more than 25 years.
Katie L'Heureux, who patiently and tirelessly manages my accounting firm, Aguillard Accounting, and without whose support I would have had to pick either this project or the firm.
David Leary and the Accounting Salon, a community of the brightest and most generous spirits in cloud accounting.
My fellow National Xero Ambassadors, Liz Mason, Tate Henshaw, Allison Hawkins, and especially Jay Kimelman, who has never hesitated to jump on a call with me when I needed a technical guru.
Rod Drury, founder of Xero, change agent of cloud accounting, and dear friend. I will never forget meeting him at the first Xerocon Americas in San Francisco in 2013, when he greeted every attendee at the door in jeans, shook their hand, and said, “Hi. I'm Rod.” After many years of stale accounting conventions, I knew I had found my people.
The whole Xero team for being incredibly supportive, especially Ben Richmond for contributing the Foreword to this book, Anthony Staltari for answering every overly specific product question I had, Sarah Bleeker for being unfailingly patient and positive, the Partner Consultant team for being my sounding board, and all of the account managers who work tirelessly as evangelists of the best cloud accounting platform in the world.
My emotional support network in New Orleans, the D List.
Jeff Phillips, who has been a strategic advisor and trusted confidante since we first met.
Andrew Lilly, my attorney, who always listens patiently to my wild ideas.
Rob Couhig, who was my first client and trusted me to work on many of his cases. Without Rob, there would be no Aguillard Accounting, Elefant, or Xero book.
Ellen Cook, who as the head of the accounting department at my college, nominated me for a tax competition that changed the trajectory of my whole career.
About the Author
Amanda Aguillard decided when she was 16 to become a CPA, and never looked back. She started Aguillard Accounting, LLC in 2012, committed to running a cloud-based practice from anywhere in the world.
She was named one of the Top 50 Women in Accounting in 2018 and 2019 and has been a Hubdoc Top 50 Cloud Accountant in the past. She was the Xero Evangelist of the Year in 2016 and used her experience as an instructor of the Xero Certification course to co-found Elefant, a continuing education company for accountants and bookkeepers. She is also the founder of Accounting Salon, a think tank of cloud accounting experts, and its virtual offshoot, SALONv.
While she holds a Masters of Taxation degree from the University of Denver, her passion is to help advisors leverage technology to build their dream practices. She is a Certified Instructional Systems Designer and regularly speaks at state CPA societies and industry technology conferences like Accountex, AICPA Engage, Clio Cloud Conference, and Xerocon.
She spends any spare time cooking for her two kids and reading historical fiction. She is slightly obsessed with Penzeys Spices and backcountry hiking.
CHAPTER 1Introduction to Xero
The difference between Xero and other accounting solutions is that its functionality and language is designed specifically for business owners and operators. The accounting jargon has been banished and replaced with everyday language, such as “money in” and “money out.” But the system has by no means been dumbed down. Xero has the capacity to grow with you from your spare room to the boardroom.
—Source: Wayne Richard, Partner and COO of Bean Ninjas.
Unlike other accounting products, Xero was built as a cloud platform from day one. Founded in 2006 in New Zealand, the company started off by offering cloud-based accounting software, but has evolved to provide a full spectrum of connected tools and services that can help small businesses succeed. As a company, Xero's purpose is to make life better for people in small business, their advisors, and communities around the world. Xero helps small businesses work with their closest ally, their accountant or bookkeeper, whether doing taxes, understanding their finances, or making plans to grow. The platform brings all of the necessary data and information together in one place so small businesses and advisors can collaborate together and succeed.
A truly global company, Xero has more than two million subscribers worldwide as of March 31, 2020.1
While Xero's home markets of Australia and New Zealand see small business adoption of the cloud in excess of 50%, other regions, including the United States, show adoption of less than 20%.2 That means there is tremendous opportunity for U.S.-based accountants and bookkeeping professionals to advise clients on cloud technology.
Working in the Cloud
If you have only previously used desktop accounting software, you are in for a treat! Xero, like other cloud-based applications, runs in an internet browser. This means that both the software and the data live on Xero's servers. No software is installed on your hard drive.
There are many advantages to using cloud-based software, including:
Physical security of data
. My companies are based in New Orleans, which, in 2005, faced one of history's biggest natural disasters with Hurricane Katrina. Most New Orleanians left their offices on Friday afternoon, without any indication that a hurricane would hit the city. (At that point, the hurricane was forecast to go to Florida.) The data that was lost on onsite servers to flood, heat, and humidity was immeasurable. By storing our data in redundant remote servers, it is better protected.
Automatic software updates
. In my years in public accounting, I can recall many hours of waiting for software updates to be installed on the server, usually at the most inopportune times, like the middle of busy season. With cloud-based software, updates occur in the background and generally without downtime. Because software is upgraded at the application level, developers can constantly make the product better. Each year, Xero releases dozens, if not hundreds of product improvements. Almost universally, these updates are included in the monthly subscription of cloud applications at no additional cost.
Reduced capital costs
. Because servers are not needed on premises to hold software, and large hard drives are not required to store data, businesses can be run with minimal hardware. Cloud software typically does not require long-term licenses either, so the commitment is only month to month.
Simultaneous user access
. Multiple users can be in the file at the same time and with Xero, an unlimited number of users are included with every subscription.
Flexibility in hiring
. One of the biggest struggles for accounting and bookkeeping practices is finding qualified talent. When the firm's software is accessible anywhere, the firm can source employees from a much larger talent pool, and in some cases, take advantage of wage arbitrage.
Easier access with better controls
. True browser-based software can be accessed on any hardware with proper login credentials. Because the data is gated by passwords, rather than being downloaded to a hard drive, the data remains secure on any device, yet user access can be denied immediately by firm administrators if needed.
Real-time, single-ledger data
. In my time in public accounting, I often communicated year-end adjustments to clients that never made it into the file. Nearly every year, I would have to start with fixing prior year balances. With cloud-based software, the accountant or bookkeeper can make the adjustments on their own and not depend on the client.
Availability of mobile apps
. Many small business owners leverage time out of the office to work on their company bookkeeping. Desktop applications do not offer mobile versions. Having the ability to handle simple tasks on a smartphone or tablet gives owners flexibility.
Collaboration.
When all users are looking at one common ledger, discussions can occur more easily. Advisors can communicate with other people on the client's support team, like lenders and investors, and share information.
Ability to customize an ecosystem
. Using a cloud-based general-ledger package means the ability to craft an entire ecosystem of operational software around it. Pick the best solution for any piece of business operations and connect with integrations. If needs change, switch out only one piece of software while keeping the core general ledger.
Access to machine learning
. Aggregation of data creates opportunities for software to aid in automating simple tasks, like bank transaction coding, based not only on the learnings from that client's file but also from the billions of transactions processed in apps.
