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How Do I Set Up Xero Accounting?

What is Xero?

Every business needs to take care of its finances. It’s one of the most important things that define the success of any business. Ensuring you have full control over the finances will determine the survival of your company. With small businesses that already run low on funds, it can be difficult to think about accounting software. So, what should a small business do to handle its finances without burning a hole in its pockets? The answer is Xero Accounting Software.

Xero is software designed for accounting purposes. The software mainly caters to smaller businesses. The best part about the software is that it is completely cloud-based which makes the process simpler. Xero performs several functions like payroll, bookkeeping, invoicing and much more. Not only that, you can use Xero to connect to a live bank feed. Sounds interesting, doesn’t it?

In addition, Xero supports both accrual accounting systems and cash-based too. Thus, they are ideal for organizations adhering to IFRS or GAAP. Xero is a simple to use and organized software with plenty of tools. One of the best things about Xero is that it offers a clear overview of your company’s financials. Boasting a unique dashboard, the software allows owners to see exactly where money is going and coming in.

Benefits of Xero Software

  • Access Anytime Anywhere

As discussed above, Xero is cloud-based accounting software. Thus, you can access it from any place anytime without any hassle. You can even access it from your phone and the usage isn’t restricted to a single device.

  • Bills

Another benefit of Xero accounting software is the billing module. This is free in all of the plans including starter, standard, and premium. However, with the starter plan, you can have only 5 bills.

  • Tracking

Xero has excellent tracking options that you to track accounts easily. This is free in all of the plans including starter, standard and premium. This is a great feature that simplifies a ton of your tasks.

  • Automated Bank Feeds

One of the unique features of Xero accounting software is that you can link your bank account to the application. This is again free in starter, standard and premium plans. The feature is designed to automatically update and import statements into the software.

How to Get Started With the Xero Software

Wondering how you can set up the Xero accounting software? Read on to know the detailed guide on the same.

  • Watch the Video

If you are unaware of how to use the Xero software, then we recommend watching the ‘Xero Dashboard’ video. This video will give you a detailed step-by-step guide on how to proceed. You can find this video in the top left corner of the dashboard.

  • Organisation Details

As a limited company, you will have a registered number and address. This information is necessary for the invoices that you create. If you haven’t input your organization details, then proceed to Settings > Organization Settings. Here, you can input or update several details that are essential in invoices.

  • Financial Settings

To set the financial settings, you can go to Settings > Advanced Settings > Financial Settings. Here, you can set the Financial Year End reports as well as Sales Tax and VAT Details.

  • Chart of Accounts

If you have recently switched from another accounting software, you can import the chart of accounts easily into Xero. An accountant is the best one who will help you with the importing process. But, if you don’t have an accountant, then consider using the software’s default chart of accounts.

  • Payroll Setup

Using the payroll feature from Xero will allow you to keep a track of staff costs. With this feature, you can keep payroll costs in a single place. Unlike other applications, you won’t have to pull your data from different sources.

  • Payment Services

In addition to other details, you will also have to add an active payment method to Xero. You can go ahead and enter your PayPal, GoCardless or Stripe accounts. Ensure to add a large variety of payment options. This way customers can easily pay you.

  • Payment Reminders

One of the most crucial elements of a business is getting paid faster. For this, you will have to set up your credit control systems. In addition, also set in payment reminders that will allow for faster payments.

Final Words

Xero is a great software that allows you to streamline your process. There are several functionalities that Xero offers that you can incorporate into your system. If you can afford an accountant, it’s best to take their advice in helping set up the software. The experienced professionals are well-versed in setting up such accounting software. Last but not the least, Xero has intuitive working and is pretty easy to learn. Incorporate Xero and witness better changes in your business.

For more information, please contact us on 02921 056209 alternatively email admin@e-accounts.co.uk

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