How To Use Xero Accounting Software 13-Step Guide

From the Chart of accounts page, click on the account that you wish to edit. Then, update the information as needed, and click the Save button to apply the changes. To view your chart of accounts, click on the Accounting drop-down menu at the top of the screen and then select Chart of accounts. You selected the base currency during the subscription stage, where you provided key information about your business as part of the onboarding process.

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. Xero is an online accounting software designed for small businesses. If you’re new to Xero, then this guide to getting started should help you quickly get up and running. Yes, it does, and you can opt to use these accounts for your transactions. However, you may also create a new account manually, edit existing accounts, or import one into the system.

Can I add multiple users in Xero?

Then, click on the blue Invite a user button in the upper right corner of the screen, as shown below. Once done, click on the blue Save button in the lower right corner of cloud accounting benefits the screen (not shown in the image above). Here are 13 steps to get you started using Xero to get a better handle on your finances. This page is used by your activity to communicate with the learning platform.

Connect apps

1. Initially, when you’ve input some data, look at your Balance Sheet, Profit And Loss, Aged Receivables, and Aged Payables.
2. Only set up payment reminders when you get into the habit of reconciling receipts daily.
3. Also, you can upload your company logo, which will appear in your sales and purchase forms.
4. Setting up payment reminders and organising your credit control systems can help you to get paid faster.

Next, Xero will ask you to upload your contacts by clicking the Select file button and uploading your file. You may download Xero’s basic template for importing contacts to make the process easier. Next, proceed to enter the essential information, such as contact details and address. You can also tips to manage money enter financial details related to W-9 business classification and a credit limit amount. At the very least, you need to provide the contact name to be able to create a new contact in Xero.

You’ll learn how to set up and use Xero effectively, streamlining regular bookkeeping tasks to save time and stay on top of your finances. The easiest way to add a new contact manually in Xero is to click the + button at the upper right corner of your dashboard and then select New Contact, as shown below. Click Browse (shown in the image above) to locate the saved file on your computer. Select Import, then a summary will appear that displays all of the new accounts.

Why Is Cash Flow Important To A Small Business?

You can opt to use Xero’s default chart of accounts, but if you prefer, you can create a new account, edit existing ones, or import your own chart of goodwill: differences between gaap and tax accounting accounts. Whether you are new to Xero or are looking to deepen your understanding of the software, we have five tutorials that will help you. Each Xero tutorial includes detailed step-by-step guides, complete with text and images. Only set up payment reminders when you get into the habit of reconciling receipts daily.

With a larger variety of payment options, it is easier for customers to pay you. Another benefit of regular reconciliation is that you’ll be able to use Xero add-on apps much more easily, as your data will be up-to-date. Just a few minutes a week spent approving pre-matched items ensures your data is up to date. As Xero is connected to your bank, transactions are pulled through automatically.

Learn basic reports

Read our detailed Xero review to learn more about the software’s pricing and features. Note that in Xero, you’ll use the same contact form to add customers and vendors. You can later designate whether that contact is a customer or vendor based on the transactions you create. In contrast, other accounting software, like QuickBooks, use separate forms for creating new customers and vendors. Click on the Organization details section to add or edit your basic company information, such as the company display name, organization type, and industry.