Our Best Tips And Tricks For Using Xero.

Effective accounting for your business.

Here at Spark, there’s a reason why we choose to work with Xero and recommend the software to our clients. With everything you need in one place, including essential data and useful tools, Xero is an innovative, secure and effective cloud-based accounting software.

As well as streamlining your accounting processes, the data Xero can provide will give better information about your business, meaning you can make better decisions for the future.

Below we have listed our top tips for getting the most out of Xero. Implementing these into your business accounting will save you time, save you data headaches, and will give your business the best chance of success in the future.

First things first.

Customise Xero to give the information you need.
This can be as simple as setting up your dashboard to show the key figures you need to see for the day-to-day of your business, or more detailed customisation such as amending profit and loss accounts into a format that works best for you.

All your accounts in one place.
Your bank feed is where your banking information is pulled directly into Xero from the company’s bank each day. You want to make sure this is set up correctly for all bank accounts – including any secondary accounts such as PayPal.

Automate recurring transactions.
Use bank rules to automate your recurring transactions such as bank charges or wage payments. Xero will remember where to post them each month so you don’t have to.

Keep it up to date.
If you can’t – find someone that can! Xero makes it simple to manage your accounts and financial processes, so to take full advantage of all its benefits, you need to keep it up to date.


Work with a leading invoice processing application.
Time is money, so you don’t want to be spending yours typing invoices into Xero when the software will do it for you. You can reduce repetitive manual data entry and speed up your invoicing by using preset inventory items and replicating previous invoices.

Use repeating invoice templates.
For any invoices that will be the same value each month, you have the ability to set up repeating invoice templates. These can then be sent automatically to your customers with a personalised message each month.

Use the invoice reminders function.
To remind customers when invoices are due (and more importantly, when they are overdue) you can utilise the invoice reminders function. A simple automated reminder will be sent out to the customer and can be tailored to 7, 14 or 21 days overdue. It can also be sent by invoice amount – only sending a reminder to the largest invoices if necessary.

Staff Processes.

Automatically post expenses.
Use Xero expenses to automatically post expenses for your business. Upload receipts, mileage and set authorisations for your staff. This will mean that all expense claims are in one place and automatically included within the finance function – ensuring no duplication.

Make the most of Xero Payroll.
Make sure you are using Xero Payroll and emailing staff their payslips. Alongside processing pay, Payroll also enables you to track working hours and manage leave – with controlled access for employees.

Xero’s Most Useful Features.

Find & Recode
Arguably the best feature on Xero, Find & Recode can correct large batches of data at once and save huge amounts of time when used correctly. Accounts, tax rates, tracking and contacts are easily updated on transactions. What could take hours manually can be done in seconds with Xero doing the work for you.

Xero Tracking
By comparing all areas of your business side-by-side with Xero Tracking, you will be able to review the profitability of the different profit centres within your business.

Lock dates
Make sure your dates are locked once a reporting period is finalised. This will avoid errors which can often occur when dates are entered incorrectly. Setting a lock date will stop changes being made to transactions during a past period – you can change and remove this lock date at any time.

Don’t go it alone.

The best piece of advice we can give when it comes to using Xero for your business is to work with an accountant who understands the software and will make sure you are getting the most out of it.

This doesn’t mean that you have to hand everything over to them, but instead that you work with them. Take advantage of the Xero ecosystem and get advice on the best apps that will work alongside the software to compliment your business.

Speak to an advisor who has knowledge of the app marketplace. At Spark, we invest time in keeping up to date with all new developments as Xero continues to evolve.

Our clients are able to take full advantage of all that Xero has to offer their business.

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