Are you a beginner on Xero? You must be perplexed about how to use Xero and wondering how to set up your Xero account? Follow these seven easy steps to set up your Xero account.
1. Watch the Getting Started Video
Go to the top left corner of the Xero dashboard, and you will find a getting started video on Xero.
2. Connect a Bank Account
Your bank and Xero work together to import your bank statements over a secured network. To add your bank account go to Accounting> Bank Accounts > Add Bank Account.
3. Set up Your Company Details
If you are running a limited company, your company’s official number and registered address need to be displayed on every invoice.
To enter or update your company’s contact details, click on your Business Name>Settings> General Settings> Organisation Settings.
4. Set up Financial Settings
To enter your financial details go to Accounting > Advanced > Financial Settings
Financial Year End- This section declares the annual closing date of your business.
Sales Tax- This section declares the tax scheme of your business, e.g., Cash or Accrual, Tax ID, Tax Display Name, Tax Period.
5. Add a User
Add a user and let your accountant, bookkeeper, and other employees help you with your accounting software. You can set customize permissions for individual users.
To add a user click on your Business Name>Settings>Users>Invite a user
6. Add Payment Services
Add payment services to accept payment from clients. The more payment options you have to receive payment, the easier for customers to pay your bill. To add payment services, click your Business Name>Settings>Payment services>Add other.
7. Set up the Chart of Accounts
Categorise your business transactions with Chart of Accounts in Xero.
To set up your Chart of Accounts, go to Accounting>Advanced>Chart of accounts.
Finally, ask your professional accountant to check the setup. Make sure your conversion balance and date figures are as expected.
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