By Connor Smith, accountant at Hive Business.
You’ve made the decision to move to Xero after seeing why it’s best for your business and now it’s time to use it to its full potential to benefit you and your business; along with the other technology that is available to you.
Now, maybe you’ve just had your training session, and need some helpful notes on remembering the process. Maybe you’ve been using Xero for years but just need a refresher on your skills! We’ve got you covered. Over the next few weeks, we will be posting our top tips to help you get to know Xero and use it more efficiently.
Getting started:
This part cannot be easier as we do it all for you!
After making the decision to move over to Xero, we will ensure all your current accounting systems are fully converted to your new software! Leave this part to us, we’ll make sure the switch is as easy as possible.
We provide a free training session to all clients who switch to the software, so if you’re nervous about starting fresh, don’t be! There’s never been a better time to make the move, and we’ll make sure you’re up to speed before you get started.
One of the first things you’ll need to familiarise yourself with is how to enter invoices:
Depending on your Xero subscription, you will be able to make use of the Sales and Purchase ledger, keeping control of your working capital and chasing those customers who are always conveniently forgetful!
The process is similar for both purchase and sales invoicing, and the process below can apply to entering either.
1. Identify important information
Identify from your invoice the important information. What will need to be reflected in your accounts? The customer/supplier name, invoice number and amount are often a good place to start. Any further information you want to add to the invoice can be included in the description box.
2. Allocate the invoice
For purchase, be sure to allocate the invoice to the correct Profit & Loss code – when running your financial reports, it’s important to have everything coded correctly to show an accurate picture of the financial performance of the business.
3. Check and approve Allocate the invoice
Check your information is correct, and the invoice is ready to be approved! Once everything is complete, your entry should look something similar to this:
Does your business have a large volume of purchase and sales invoices each month?
It may be time to think about a partner product to go alongside Xero to speed up the bookkeeping process even further. Receipt Bank, for example, is able to identify all the important information from your invoices just from a scanned copy. Simply scan a batch of invoices into the software and upload straight to Xero! No extra steps required!
If you would like to find out how Xero could benefit your business get in touch on01872 300232 or email us at hello@hivebusiness.co.uk.
