6 Xero Setup Things Most People Forget
- May 20, 2015
- Posted by: info
- Category:
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As you have taken the correct decision of using Xero for meeting your accounting needs, it is important to do all the initial setup properly.
Small businesses can easily do their accounting activities through Xero at relatively lower cost. Now, making the initial setup in Xero is very easy where you just need to follow a few simple steps. However, some people still forget some of the important things during Xero integration
It must be noted that Xero can work efficiently to meet the accounting needs when some setup is done properly.
What are common things most people forget while doing Xero setup?
It is found that there are some of the common things that people forget while doing the Xero setup. We will mention 6 common things that people forget while doing Xero setup.
Here are 6 common things that people forget while doing Xero setup:
- Forget to setup Xero chart of accounts
Xero chart of accounts is the accounts lists where all the transactions are done. It helps in making the expenses in the business to have the accounts within the chart of accounts. You can go to the General Settings for making the respective update in the Chart of Accounts. It will make all the expenses to segregate it properly. It is common that most people make the necessary setup in the Xero chart of accounts. - Online Payment options for immediate payments
Xero does not allow making online payments immediately for the invoices sent. Here, you must add the “Payment Services” to the Xero which can help to avoid the non-payments and late payments for the invoices. You can make the necessary settings through General Settings and in the payment services. - Multiple PayPal Accounts Setup
Generally, you can easily connect the PayPal accounts to Xero. However, it creates a problem when you have to deal with multiple currencies. It can be solved by making multiple PayPal accounts for each currency. So, make sure that you make separate PayPal Accounts for different currencies. - Setting up automatic invoice reminders for unpaid Invoices
It is a tedious task to follow up with the customer with the pending Invoices. Xero has the option to make the auto-reminders for the customers with unpaid Invoices. Xero invoice reminders are sent after the due date with an interval of 7, 14, and 21 days. Auto reminders can be activated for awaiting payments through Accounts or Sales. - Forgetting bank reconciliation
The bank reconciliation process is very important for the business to cross-check the duplicate and missing transactions. It can help to find the errors in the accounting activities. The statement lines are matched automatically with the accounting record of the business. It can be done in Xero from Accounts/ Bank Accounts/ Management Accounts/ Reconciliation Report and making the bank statement comparison. Here, all the statement lines can be checked properly to check the correctness of entries. - Add the tax rates
The tax rates are set by default in the Xero, so you must make the necessary changes in the tax rates applicable to you. Making the changes in the tax rates are straightforward in Xero that can be done easily through settings.
These are some of the 6 Xero setup things most people forget while doing Xero integration. This will impact the overall accounting done in the business.
Conclusion:
Xero accounting software is one of the better ways to manage the accounting aspects of the business efficiently. So, it is important to make the Xero integration properly considering all the aspects. Xero accounting software manages all the accounting aspects of the business. If you find it difficult to make the initial setup for Xero, then you can take the help of the experts.
Meru Accounting has a team of Xero experts that can help you to make the necessary setup in Xero. They can also help you in managing the accounting needs using the Xero accounting software. Meru Accounting is a popular accounting service providing agencies across the globe. They provide different accounting services to businesses.
Infographics Summary:
What are the 6 Xero Setup Things Most People Forget? Although making the Xero integration is simple, many people forget some of the common things in it.
Here are 6 common things that most people forget while doing Xero setup:
– Xero chart of accounts.
– Online immediate payment options.
– Setting multiple PayPal accounts for handling different currencies.
– Automatic Invoice reminders setup.
– Not doing bank reconciliation.
– Adding respective tax rates.
Although Xero is very easy to integrate and use, it is important to do everything properly.
