Tips & TricksXero

Xero Tips and Tricks

Here at Virtual Bookkeeping we all use Xero on a daily basis so across the team we have all picked up little tips and tricks here and there to make using Xero that much easier. Here is a list of some of our top tips in Xero:

  • Invoicing out of Xero
    • Set up repeating invoices – if you send regular invoices to your customers, use Xero’s repeating invoices template. This function is great for saving you time when you need to process your monthly invoices.
    • Make sure your defaults are set up correctly eg: tax-inclusive or -exclusive, payment due dates. Small automations like this can save you valuable time.
    • If you have a particular invoicing system in your industry find out if it synchronises with Xero.
  • Paying your Bills
    • Use a Xero Add-on like ReceiptBank to process your bills – this takes all the manual processing off your hands and automatically sends your bills into Xero. Using this system also means you can say goodbye to folders and folders of paper bills, as these save as PDFs.
    • Use Xero batch payments to pay your creditors/ bills – Most banks will allow you to upload batch payments into your online banking system. Once you have everything set up you can pay all your bills, whether it’s 2 or 50, in 5-10 minutes!
    • Pay specific invoice amounts to your creditors rather than lump sums – this not only keeps it easy for your creditors to reconcile, but means your bill’s system will be much tidier.
  • Reconciling in Xero
    • Once you are using invoices and bills efficiently in Xero, reconciling becomes much simpler – most payments, in and out, will reconcile to invoices or bills you have already set up.
    • For payments that aren’t already set up you can set up Bank Rules – for example, if you have monthly insurance bills going out but only one original invoice for these, you can set a rule to have this payment coded to insurance and the supplier each time.
    • With Bank Rules, please note that the order of your rules in the list in Xero is the order of priority these rules will take when loading against a payment.
    • You can split payments in Xero – if a customer only pays half of their invoice you can still reconcile this payment as it comes in. Click find a match – find the correct invoice – tick it and then click “split” – this will allocate the payment made and leave a balance as an amount still owing. This function can also be used when paying bills.

If you have any questions or would like to start using some of our tips and tricks about but are unsure of where to start, give me a call. I am more than happy to teach you how to use these functions.