Here's how to do everything from rewinding a reconciliation mistake to setting up invoice reminders.
At KPI Business Advisory, we know that using accounting software like Xero can be a game-changer for small-business owners. That's why we've compiled some of our favourite Xero tips to help you get the most out of the platform. Our tips include shortcuts, customisations, and unique features that will save you valuable time and energy. These tips are relevant to all Xero users and don't include features that are exclusive to users under the Advisor role.
1. Create customised roles
The first of our Xero tips is the ability to create highly customised roles for each Xero user. This ability lets you fully collaborate with everyone who impacts your business without giving everyone access to sensitive information. With this feature, you can assign roles in Xero based on the individual’s role in your business (Xero even has a chart to help you compare user roles) and in doing so, that person will only have access to the capabilities associated with that role.
Here’s how to set a user’s role when you add them to your Xero organisation:
Click on the Settings tab, then select General Settings.
Click the Users link and then click Add a User.
On the next screen, you will see options ranging from Advisor (which is the role you want to assign to your business accountant so they can fully advise you on your finances) to None for six different categories. You can also add permissions to users to give them supplemental functionality. These permissions can allow users access to payroll administration, give the ability to edit bank account information for customers and suppliers and grant the ability to manage users and change permissions.
At the very bottom of this screen, you will see a link to “Understand user role details.” This link takes you to a page that fully explains what each role can access, so you never have to wonder if you are choosing the correct options for a new user.
2. Rewind a reconciliation mistake
It happens to everyone: You’re in a groove, zooming through your bank feed and before you know it, you’ve incorrectly matched a transaction. Xero’s “Unreconcile” feature lets you fix this mistake quickly. Since unreconcile 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:
Click on the three little dots to the right of the account name on the Dashboard.
Go to Account Transactions under the Find header.
Click the transaction you want to change to open it.
On the next screen, click Options and then select Unreconcile.
Click OK on the pop-up window to unreconcile the transaction.
After you’ve completed this process, you can now re-reconcile the bank statement line.
3. Make the most of the “plus” icon
For our second Xero tip, let's dive into the plus, or add, 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 such a small detail, this one icon can actually be extremely helpful.
Clicking this icon lets you quickly access a number of different functions such as creating a new invoice, contact, bill or purchase order. As you continue to use Xero, this shortcut will save you time and help you develop a flow within your accounting process.
4. Publish reports for a snapshot in time
You can publish your annual and interim financial statements, as well as other reports and save them directly within Xero. Though your accounting information changes daily, it’s sometimes helpful to have a frozen snapshot of a certain period of time available at your fingertips. Publishing these reports inside Xero lets you securely save this information right within your accounting software.
To publish a report:
Simply click the green Publish button at the bottom of the screen.
On the next screen, you can either publish the report (as a PDF or spreadsheet) or save it as a draft.
To access the report again, click the Reports tab at the top of any screen in Xero, select All Reports and then click the Published link at the top of the page.
Once a report is published, it will be available in this tab for others to see when they log in to Xero. This is a great way to share information from a specific time with other members of your business. Additionally, you can save reports in either format to your computer as well to share or use at a future date.
5. Create repeating invoices and bills
If you have regular invoices to send or bills to pay, save yourself the trouble of having to repeat the same process again and again with this Xero trick. 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 specify. Xero will put it in the Draft tab if you need to vary the amount (or another field), and if everything's the same each time, it will go in the Awaiting Payment tab.
Again, this feature can be set up for both invoices and bills and is done by accessing the Repeating tab in each respective category. From there, click “New Repeating Invoice/Bill” and you’ll be able to create a new template or use an existing one, and set up the specifications you require. This Xero capability, found in many invoice software, will ultimately facilitate your bill pay and invoicing process.
6. Save time with the inbuilt calculator
This one of our Xero tips deals with a practical tool that many users miss when learning how to use Xero accounting software. Xero has an inbuilt calculator that allows you to perform basic maths functions directly in certain fields. Using this calculator decreases the chance of an entry error, not to mention it saves you time looking for another calculator to use for simple arithmetic operations. It’s also useful if you need to do some quick calculations in the service of a more complicated accounting formula.
The inbuilt calculator has addition, subtraction, multiplication, division and group functionality. To use it, just type in an equation — like 22 * 1.17 — right into a field. Press enter or tab and Xero calculates the result. You can use this calculator for transactions as well as manual journals, however, you should know that not all fields accept maths functions.
7. Test out the demo company feature
Have you ever wanted to test out a transaction or feature but were hesitant to risk your financial records? Xero's demo company provides a safe environment for experimentation using usable test data. The demo company allows you to try out transactions and features without affecting your actual business data. Moreover, any data you enter or import into the demo company will not be visible to anyone else.
For example, if you want to see how a large transaction would affect your retail store's accounting, you can use the demo company feature. To access this feature, click on the list icon to the left of your company's name on any page and select My Xero. At the bottom of the next screen, you'll find a link to Try the Demo Company. You can reset the demo company at any time, but keep in mind that any data you enter or import will automatically expire after 28 days.
Using Xero's demo company feature can help you make informed decisions without compromising your financial records.
8. Set up invoice reminders
To streamline your accounting process and improve your cash flow, consider setting up invoice reminders in Xero. With this feature, Xero can automatically send reminders to customers based on how far past due an invoice is, saving you time and effort in chasing payments.
To enable invoice reminders, go to Settings > General Settings > Invoice Settings, and click on the Invoice Reminders button. From there, you can turn on invoice reminders and choose from the preset days past due parameters or create your own reminder. You can also customise the content of each reminder email by clicking on the Edit link. Moreover, Xero allows you to include a link to the invoice in the reminder email and exclude reminders for outstanding invoices under a certain amount. If needed, you can also disable reminders for a specific customer or invoice.
9. Sync with Google Sheets
To streamline your business tasks, it's convenient to integrate different platforms. One way to achieve this is by syncing your Xero account with your Gmail account. By doing so, you can easily export reports or budgets from Xero to Google Sheets. To use this feature, simply select the report or budget you want to export, click on the menu icon (three dots) on the right side of the document, and choose "Google Sheets" as the export method. If you're not logged into your Gmail account, you'll need to do so and verify Xero as a trusted site.
Once the document is exported to Google Sheets, you can edit, save, or share it as needed. You can also invite others to view the document as a read-only file, even if they don't have a Gmail account. This is useful for completing accounting tasks or other work outside of Xero, as well as collaborating with people who don't have access to your Xero account.
10. Open multiple organisations
It's not unusual for small business owners or their partners to have multiple businesses. However, if these businesses have different tax ID numbers, it's crucial to maintain separate bookkeeping files for each one. In cases where money flows between these businesses, it's important to record these transactions accurately in each business's accounting.
Viewing both bookkeeping files at the same time can ensure that the transactions are recorded correctly, but logging in to multiple Xero organizations simultaneously can be problematic. Managing multiple logins can lead to forgetting to save work or saving it in the wrong organization.
To avoid this issue, you can use different browsers for each organization. For instance, you can log in to Company A's file in Firefox and Company B's file in Safari, or you can set up multiple identities in Google Chrome and open a Xero file in each one.
Although this Xero trick can save time and simplify the process, it's essential to exercise caution while working in multiple organizations simultaneously. Recording transactions in the wrong set of books is easy, and it may go unnoticed until the end of the year.