7 Easy Steps How To Use Xero Accounting Software

7 steps to use Xero accounting software

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.

Related:
1. Master Your Accounting Skills in 5 Steps
2. Business and Accounting Training: Is This Your Future?

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. 

To learn more about bookkeeping and accounting, take a course from Alpha Academy.

Alpha Academy offers the following courses on Accounting and Bookkeeping.