Updated: Sep 29, 2021
One of the most popular accounting systems for small business owners is Xero, because it is so user friendly and being a Xero Partner, I thought I would share a few tips with you to help you get the most out of your account.
Create Customised Roles
Creating customised roles gives you the ability to let you fully collaborate with other people involved in your business without giving everyone access to your sensitive information. With this feature, you can assign roles in Xero based on the role you would like each user to perform and in doing so that user will only have access to the capabilities associated with that particular role. Which is great if you wanted to outsource your invoicing to a VA, for example, but did not wish for the VA to be able to change important settings or access your payroll data.
Here is how to set up a user's role:
Click on your organisation name, at the top left hand corner of the screen.
Select Settings, then click Users,
Click on Invite a User.
Enter the new user's first name, last name and email address. The email address you send the invite to will be the user's login email address.
Select which features you want them to access, and a user role for each feature.
(optional) Click Add a personal message, then enter an email message. If the person you are inviting as user hasn't used Xero before you can include a link to Xero Support article on how to accept or decline a Xero invite here. This is the link you https://central.xero.com/s/article/Accept-or-decline-an-invite-into-a-Xero-organisation?userregion=true
2. Make the most of the 'plus' icon.
When you log in to Xero, you will see a little plus icon (+) at the top right of the screen. Although it may seem like a small detail, this one icon is extremely helpful.
This icon lets you quickly access a number of different functions, such as creating a new invoice, contact, bill or purchase order. Using this icon will save you time and help you navigate around Xero with ease.
3. Rewind a reconciliation mistake.
I think everyone has incorrectly matched a transaction before, it is so easily done so Xero has an unreconcile feature to let you fix the mistake easily and quickly. Since the unreconcile feature keeps the account transaction and the bank statement line but removes the connection between them, this Xero tip will save you a ton of time and hassle.
To unreconcile an account transaction:
In Accounting menu, select Bank account.
Click the name of the bank account that has the account transaction you want to unreconcile.
Find and open the reconciled transaction.
Click Options, then select Unreconcile.
4. Save time with the inbuilt calculator
Xero has an inbuilt calculator which most people miss, it allows you to perform basic math functions directly in certain fields. Using this calculator decreases the chance of any entry error, not to mention it saves you time looking for another calculator to use.
The inbuilt calculator has addition, subtraction, multiplication, division and group functionality.
To use it, just type in an equation - like 15*1.12 - right into a field. Press enter or tab and Xero calculates the result for you.
5. Create repeating invoices and bills
If you have a regular invoice to send or a regular bill to pay, save yourself the trouble of repeating the same process each month by setting up repeating invoices or bills. Utilise the repeating invoice function by developing a template and Xero will automatically create an invoice or bill for you based on the frequency you would like. Xero will put it in the Draft tab if you need to vary the amount and if everything is the same each time, it will go in the Awaiting Payment tab.
In the Business menu, select Invoices.
Select the Repeating tab, then click New Repeating Invoice to create a new template. To edit an existing template, click into one from the list.
Enter or edit your information in the repeating transaction fields.
(Optional) To accept payments from credit card, debit card, PayPal or other payment services, click the Get set up now link under Online payments and follow the steps.
(Optional) To set up an annual repeating template, under the Repeat this transaction every option:
Enter 52 and select Week(s) - to repeat on a particular day of the week
Enter 12 and select Month(s) - to repeat on a particular calendar date
6. Set up invoice reminders
This is one of the most important Xero functions which you should definitely set up especially if you do not go into your account as often as you should. It is so easy to forget the invoice due date so this little function not only alerts your client/customer that they need to pay but it also alerts you to a non payment. This saves you having to remember to chase them late payers plus saves you writing repeated emails each time a client/customer pays late.
Xero has three default reminders set up for you to use. All you have to do is turn invoice reminders on.
To turn reminders on for your organisation:
In the Business menu, select Invoices.
By the clock icon , click Invoice reminders off.
Select the Email customers when an invoice is checkbox. Xero’s default reminders are now set up to send out for overdue invoices. You can customise these to suit your organisation.
(Optional) Select the Include quick link to online invoice and detail summary checkbox to include the online invoice link, amount due, due date, and invoice ID in the email header for all reminders.
(Optional) Select the Include a link to the invoice PDF checkbox to include PDF invoice links in all reminders.
(Optional) Select the Don't send reminders for amounts owing on an invoice under checkbox, then enter an amount.
Click Save. Xero will send out the reminders you have set up for all invoices marked as sent.
If you need help with late payers, have a read of my blog on How to chase an overdue invoice (the right way) for help and advise.
I really hope this blog has helped you, and if you are struggling with your bookkeeping then please do book a call below.
Plus, if you do not feel ready to outsource your bookkeeping but need a little assistance managing your Xero account then book a Xero Power Hour with me so I can show you how to keep your books in order yourself.
Please feel free to email me, if you would like to know more about Xero or any of my services at firstname.lastname@example.org
Heidi - Virtual Assistant / Bookkeeper
Creative Edge VA Ltd