November 12th, 2015

Xero – 5 Features You Should Be Using

Xero 5 features you should be using

 

Xero has some great features – here’s five of my favourites.

Each one takes a little bit of time to learn about and understand. But, once you’re up to speed you’ll save loads of time and get a better insight into your business than ever before.

Budget Manager

I love the budget feature. It’s dead easy to set up. Just export a template – fill in your plans each month on a spreadsheet – and import it back in again.

The whole process of planning a budget is worthwhile too.

It gets you thinking about your sales targets, how your costs vary with sales, and what your overheads will be for the year.

Just doing the exercise gets you asking that really important question – “why?”

Once it’s done you can produce a budget variance report each month so you can compare what’s actually happened with your plans. And this means you can focus on the variances – those areas that are way off your expectations.

Bank Feeds

It’s not hard to import a statement into Xero but the bank feeds really are great. All your information straight into Xero with no effort from you.

And because it’s updated everyday you can just log in for a few minutes – from your phone or tablet – and reconcile a few items when you’ve got a spare moment.

Bank feeds are typically about £3 a month. Don’t penny pinch.

Just do it.

Bank Rules

Xero does a good job of recognising transactions it’s seen before and suggesting where you need to post it to. But it’s not perfect and may need a bit of help sometimes.

Take the trouble to learn how to use a bank rule and then use them as much as you can. It may take 30 seconds to set one up but then you’re done and super fast bank reconciliations await you.

Files

Xero has a brilliant Files facility. Just click on the bit you see highlighted below.

image

 

You can attach documents to customers or suppliers – copies of contracts etc. You can also attach files to fixed assets – copies of things like warranties and guarantees.

And you attach copies of invoices too – although I’d use something like Receiptbank for invoices.

You also have a special email address so you can email documents straight into Xero. It’s quite a complicated one so just save it as a contact to make it easy to remember.

P&L report

My favourite report is the monthly P&L that compares the current month to previous periods. You can quickly look at this report to spot anything that looks odd or to see trends developing.

image

 

If you want to improve how you use Xero just fill in our diagnostic and we’ll give you plenty of ideas.

And if you’re not using Xero yet then do get in touch. We can get you up and running in no time.

Share this post

Filed under

Xero

by
Managing Director

Jonathan trained as a chartered accountant with Price Waterhouse (now PWC) in Liverpool before becoming a small business services manager for Grant Thornton in Warrington. He also spent three years as the financial controller for Brookside and Hollyoaks (not that he ever mentions it!).

Jonathan is recognised as a specialist in the entertainment industry and is often called upon to provide training courses and seminars for media professionals. He's also a bit of a technology geek and has been recognised with the accountancy industry as one of the most progressive accountants in the UK.
Outside of work Jonathan is very proud to be the Treasurer of the Tim Parry Johnathan Ball Foundation for Peace and to be on the Council of the Liverpool Institute of Performing Arts (LIPA)

Give a Goat

Give us a referral and we will donate a goat to a family in Africa

Find out more

Our Newsletter

Enter your email address to subscribe to our mailing list.
  • This field is for validation purposes and should be left unchanged.