Top 10 Xero Bookkeeping Tips to Improve Financial Management

Xero is a well-known tool in the business world, providing strong accounting and bookkeeping features. While QuickBooks is popular, Xero has proven itself time and again. New accountants should know about Xero, as getting certified is important for a successful career. With technology changing, accounting professionals must become Xero bookkeeping specialists.

But, keeping up with Xero’s new features can be tough. The dashboard has many tools, and using the advanced features often requires experience.

We can't cover everything about Xero, but here are the top 10 tips every Xero-certified bookkeeper should know. Let’s get started!

What is Xero Bookkeeping?

Xero bookkeeping involves using Xero software to manage your business finances. It tracks your income and expenses, making account management easy from anywhere online.

Xero bookkeeping simplifies financial management with key features. Users can create invoices and reconcile bank transactions. It tracks expenses, uploads receipts, and generates profit and loss reports. Xero supports many currencies and offers a mobile app for on-the-go management. Users can also connect with other apps and set different access levels for secure collaboration.

Xero bookkeeping offers many benefits for businesses. It automates invoicing and bank reconciliation, allows access from any device, and reduces errors. With detailed reports, you gain better insights into your financial health. Its pricing suits all businesses and promotes team collaboration through shared access. Additionally, Xero can grow with you, adding features as needed.

According to Lucy Johnson, An Accountant, Find and Recode is fantastic! It saves time when managing financial data by allowing you to change account codes and tax rates, and it helps fix errors in your records. If you find transactions with the wrong tax rate, you can update them all at once, ensuring your records are accurate. This is vital for avoiding mistakes and maintaining compliance with tax regulations. Changing each tax code would take much longer!

1. Keyboard Shortcuts:

Keyboard shortcuts in Xero can enhance your efficiency. Here are some useful shortcuts to remember: use /A to show bank accounts, /B for bills, /C for contacts, /F to open the file library, /P for sale orders, /I to view invoices, and /S to access settings. These shortcuts help you navigate the software and streamline your workflow.

2. Reduce Mistakes by Locking Dates

Xero has a handy feature called Lock Dates that helps reduce mistakes in bookkeeping. Locking the last reporting date reduces errors and ensures peace of mind for business owners. To use the Lock Dates feature, go to the Accounting menu and select Advanced. Then, click on Financial Settings and choose Lock Dates. Enter the date you want to lock and click Save to complete the process.

3. The Find-and-Recode Feature

The Find-and-Recode feature in Xero lets you make bulk changes in specific fields without manual searches. This feature updates account details, transactions, and tax info, making it essential for Xero bookkeeping. To use the Find-and-Recode feature, open the Accounting menu, select the Advanced option, and click on Find-and-Recode.

4. Automating Invoicing with Xero

Xero lets you make invoicing easier for regular customers. If you offer a service at a set price, you can set it up so that Xero creates and sends the same invoice each time. But be careful! If the price changes or a customer skips a month, they might get the wrong invoice. It’s a good idea to set the system to draft the invoice first so you can check it before sending it out.

5. Using Incognito Mode to Manage Many Xero Profiles

To use two Xero accounts, log into one in a regular tab and open an incognito tab for the second account. This helps manage many businesses or freelancers handling different client accounts.

6. Data Entry Shortcuts!

Entering data can be a big job in Xero bookkeeping. These shortcuts save time for bookkeepers when entering dates.

7. Try Split Screen or Dual Screens

Changing how you set up your screens can help you work better. You can use Xero on one screen, but using a split screen or two screens is easier.

To use a split screen, press the Windows key on your keyboard. Then, pick the Xero window on one screen and your bank or other programs on the other screen. It may take less time to get used to it, but once you do, you’ll be able to work fast.

8. Xero Has a Built-in Calculator

Many software programs have extra features but forget simple tools like a calculator. Xero has one! In Xero, you can do math right in the program. Type a math problem in a box and press enter or tab to see the answer. You don’t need to use a separate calculator. This tool is useful, but new users might not see it right away. Remember, not all boxes let you do calculations, so if it doesn't work, that's why.

9. Syncing Xero with Google Sheets

Sharing financial reports is quick with Xero's integration with Google Sheets. To sync, select the report you want to share, click the menu icon, and choose the export option. Select Google Sheets and log in when prompted. Now you can share your reports without navigating through Xero!

10. Using Custom Roles in Xero

Xero enables user profiles with different access levels for secure and efficient financial teamwork. This helps bookkeepers and other departments collaborate. To set up custom roles, go to Settings, then General Settings, and click on Users to add a new user. Choose roles from "None" for no access to "Advisor" for full access, customizing permissions.

Conclusion

These top 10 Xero bookkeeping tips can help you manage your finances better. These tips ease your account setup and enrich Xero’s features for quicker, more authentic bookkeeping. By using Xero, you’ll understand your business’s finances better and make wiser decisions. For personalized help, contact a Xero-certified professional.