Answering your most common Xero Accounting questions!

This blog will look to explore the most commonly asked questions about Xero Accounting software

When it comes to accountancy, there are various platforms and software available to help businesses. However, one that is popular with many small businesses is Xero. 

For anyone who hasn’t come across Xero before, it is an entirely cloud-based accounting software for small businesses. It performs bookkeeping functions like invoicing and payroll and allows you to connect the program to a live bank feed.

Abbeygate Accountancy are Xero Gold Partners. We have been awarded this due to our in-depth Xero Knowledge, and have used Xero’s features to help our clients grow and maximise their potential. The Abbeygate Accountancy team is fully trained on the platform as well as its app add-ons. So if you’re a business needing some Xero help, we are here to assist and can get you set up in no time!

Not sure if Xero is right for you? We’ve put together the most common Xero Accounting questions below.

Why choose Xero?

Is Xero easy to use?
Yes. We find most of our clients find it relatively easy to use and navigate around. But if you do have any issues, we’re always here to help!

What features are available on Xero?
There are a number of features available to you on Xero including client invoicing, bank reconciliation, generating reports, forecasting and more.

How will Xero help me manage my cash flow?
Xero takes away the hassle of traditional bookkeeping by consolidating the accountancy process into a streamline process. Via automated bank feeds and expense reports, Xero can help you and your business plan for the future by building a cash flow forecast, which are incredibly useful should you encounter any unforeseen financial issues.

Is Xero expensive?
Xero is one of the most affordable online accountancy softwares available on the market, accommodating for all businesses of varying sizes and with plans beginning from just £12 a month.

Answering your most common Xero Accounting questions

What is a credit note?
A credit note is applied to either your own or a clients invoice when the amount required is less than the amount requested. For example, if your client were to receive the exchanged item and it was damaged, you may request or implement a credit note to cover the cost.

What is ‘cash coding’ on Xero?
Cash coding is the simple process of reconciling imported bank statements in bulk, which can help reduce the time entering transactions from bank statements.

What does ‘void’ mean on Xero?
Voiding is the process of removing a sales invoice that has been risen in error. We use the voiding process within Xero to ensure that the incorrect invoice does not affect the revenue and accounts receivable and that the clients books remain balanced.

What is ‘imported statement balance’ on Xero?
An imported statement balance is the closing balance of your statements after any all have been imported by your bank feeds, provided these have already been connected on to the platform. If not we can help with this! Again, this process helps to ensure your books remain balanced across all transactional sources.

Where can I track my year to date performance in Xero?
To find out how you have performed year to date, click on to the option ‘Accounting’, and then select ‘Profit and Loss’.

Where can I see how much I’m owed in detail in Xero?
To find out how much your business is owed in Xero, click on to the option ‘Accounting’, and then select the option ‘Aged receivables’.

Where can I see how much I owe in Xero?
To find out how much your business owes in Xero, click on to the option ‘Accounting’ and then select the option ‘Aged payables’.

Need a hand with your Xero Accounting processes?

We hope these quick-fire questions and answers help you understand a little more about how Xero can benefit your business. If you have any further questions, our team would be happy to help so please get in touch!

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