10 Steps to unlocking the power of Xero

Dealing with a business’ accounts is probably one of the most difficult and time-consuming tasks required of a business owner, which is why many small business owners turn to Xero’s Cloud Accounting software to help them manage their accounts. Xero has been designed to help you manage your accounts more accurately and effectively – and if you understand the software and all it has to offer; it can be a great asset for your business!

To fully utilise the Xero software in a way that meets your business’ accounting requirements, here are ten tips, including shortcuts, customisations and unique features, that will help you understand the software better:

  1. Create customised roles for users on your Xero account

Xero allows you to give other users access to your accounts, and you can customise their roles to limit their access. This feature makes Xero great for collaboration within a business environment, especially since it allows you to prevent sensitive information from being shared with everyone.

2. Be sure to utilise the “Plus” icon

When logged in to your Xero account, you will see a “Plus” icon (+) at the top right of your screen. This icon can be helpful and allows you to access various functions without wasting time – some functions include creating a new invoice, purchase order, bill or contact.

3. Publish reports by taking a screenshot

In Xero, you can publish annual and interim financial statements directly within your profile by taking a screenshot of accounting information over specific time periods. This is a useful feature as it allows you to share financial reports with others at the touch of a button.

4. Undo reconciliation mistakes

Reconciliation mistakes happen to everyone, which is why Xero offers an “Unreconcile” feature that allows you to quickly correct these errors.

5. Use the built-in calculator to save time

Xero offers a built-in calculator that permits you to perform basic maths while managing your accounts. This feature will save you time and minimise your risk of making unnecessary errors.

6. Create recurring invoices and bills

With Xero, you can create recurring bills and invoices – which will save you time and effort in the long run. You simply need to create a template invoice and the software will automatically create an invoice in line with the specified frequency.

7. Test transactions with the demo company feature

Xero allows you to test what certain transactions may do to your company’s finances with its Demo Company feature. With this, you can experiment with different ideas and transactions without it affecting your true business data.

8. Work in different organisations at once

Some business owners run more than one business at once and with Xero’s accounting software you can manage more than one organisation at a time, if you use two different bookkeeping files. Although this feature can save you time, you should be cautious about working in multiple organisations at once. Even with different browsers, it is possible to accidentally record a transaction in the wrong set of books, and you might not catch it until it is too late.

9. Create invoice reminders

Xero allows you to create invoice reminders, which means that forgetting to send invoices, or following up on accounts payable will be a thing of the past. Invoice reminders can be customised, and Xero will automatically send reminders based on how far an invoice is past due.

10. Sync your account with Google Sheets

Making use of digital platforms that work together can make your responsibilities as business owner much easier, which is why Xero’s ability to link to a Gmail account, and therefore sync with Google Sheets, is a great advantage. This feature allows you to export your reports and budgets to Google Sheets – where you can edit, save and share it. This also permits others to access your Google Sheet, allowing them to either view or edit it, even when they do not have a Xero account.