01604 420057

 

     

A highly experienced bookkeeping training and IT services team that will go the extra mile

Common Errors In Xero Bookkeeping

I can help you get everything sorted ...

Click here to view a mobile version of this blog post  
 
 

Posted by Alison Mead on 12/09/2022 @ 8:00AM

I have been helping a business owner this week who uses Xero for their bookkeeping, but has had a multitude of different people help with the data entry into the package, and left it in a terrible mess ...

I hope that a few of these pointers help you improve your Xero bookkeeping!

I hope that a few of these pointers help you improve your Xero bookkeeping!

copyright: flynt / 123rf


So, for my blog post this week, I thought it might be useful to go through some common problems I have found and give a few pointers to prevent your Xero based bookkeeping ending up in a mess too.

  1. My first tip is don't leave it too long before checking if Xero is working correctly. I have just gone through a whole year of transactions, July 2020 to June 2021, and the longer you leave a mess the harder it is to tidy.

  2. Double check the bank feeds. Just because the bank is importing transactions into Xero, it doesn't mean they are correct. With the accounts I was looking at the first day I checked, the first of July, had 8 transactions in Xero, but only 4 on the bank statement. Everything was in twice.

    The Xero user had not noticed and had confirmed and entered transactions against all 8 entries so everything was in twice. This is such a simple problem to rectify and something I bang on about a lot in my blog! This is my most recent post about checking your bank balance in Xero.

  3. If you have multiple ways of receiving or making payments such as Stripe, GoCardless, Square or Paypal, each one is likely to have their own special bank account, termed a 'control account'.

    When you receive money through the service into your main bank account then that is a transfer to the relevant control account and should not be added as a bank receipt or payment through the create option on the bank screen. This, in effect, doubles your sales and while it might look good in your profit and loss it means needlessly paying more tax as it will overstate your profits.

  4. Control accounts (as mentioned in point 3 above) and cash accounts should be checked regularly. If the balance on them is just getting bigger and bigger (and bigger!) then you are probably doing something wrong!

  5. If a bill has been entered in Xero, when you see the payment in the bank account then match the payment to the bill already in Xero, do no create a new transaction! This is such a common mistake I see time and time again.

  6. When you use Find & Match on the bank statement and you can see a list of loads of invoices or bills on the system dated a long time in the past, but you know you pay your bills promptly or you aren't owed any money, you are probably doing something wrong!

If you are using Xero for your bookkeeping and you are not sure if you are using it correctly and would like a health check and perhaps to learn some pointers on how to use it better then why not arrange a handholding session with me?

"Like I did for this client, I can help you get everything
sorted, or just tidy it all up for you!"

I'll let you know where you are going wrong, and help you use the software correctly going forward. Don't wait until your tax return is due or it's time to submit your limited company accounts as getting on top of your Xero, or even my other specialism, Sage50. Doing it now means you can know your business numbers and make important financial decisions before the end of the tax year and even reduce your tax bill.

I will step off my soapbox now and hope that a few of these pointers help you improve your bookkeeping.

Until next time ...



ALISON MEAD

 
 



Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to get your Xero bookkeeping sorted out, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.

Share the blog love ...

Google AMP  /  Précis  

Share this to FacebookShare this to TwitterShare this to LinkedInShare this to PinterestShare this via Buffer

#Bookkeeping #CommonErrors #Xero #Training #UK

About Alison Mead ...

 

Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.

She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.

Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.

You know what they say: if you want something done well ask a busy person!

Telephone:

01604 420057

Website:

https://www.siliconbullet.com