How to use Xero Software

• Sign up for your Xero account at Xero.com.

• Add your company’s details by going to “Organisation Settings” under “Settings”.

• Write out a list of income and expense categories that your company has.

• Set up your chart of accounts by referencing that list of income and expense categories.¹

• Connect your Xero account with your corporate bank account. In the case of you using a bank with a Xero bank feed integration. Large Singaporean banks like DBS and OCBC have bank feeds with Xero.

• Have your employees details on hand.

• Set up your payroll by going to “Payroll Overview” under “Payroll”.

• Play around with your Xero account!

Go to your settings and register your organisation

Start with the simple steps that every Xero guide mentions. Go to “Settings” and choose “Organisation Settings”. You’ll need to enter your:

• Name

• Company Name

• Email

• Official Company Number (like an entity number for companies in Singapore)

• What your company does

• Where your company is located

Fill in these details correctly. Xero needs them for reports and bills. For instance, your business address might appear on bills. Some new users mistakenly give wrong addresses and confuse their clients.

Next, adjust your company’s financial year. Go to “Settings” and then “Advanced Settings”. Xero’s usual start date is 31 December. If you’re showing the financial details to a boss or manager, it’s important to set this right. This is even more so when sending reports to the government when filing taxes.

Set up your chart of accounts and income and expenses categories

A chart of accounts lists income and expense types. For a web agency, income might be from “Web Design” or “Consultation”. Expenses might include “R&D”.

Every income or expense for your business should be considered. This is needed for the chart of accounts. While equity is key, many small firms only have “Owners Equity”. Don’t make categories too detailed. “R&D For Shutters & Blinds” is too narrow for a small furniture store. Just “R&D” is better.

Xero gives a basic chart of accounts for businesses. But, these might not fit your business well. Xero’s chart might not list your income types. To edit it, go to “Chart Of Accounts” in “Accounting”. You can delete unneeded categories and keep ones that fit your business.

Connect Xero with your bank account

Not all banks work with this feature. For instance, Xero teamed up with DBS in Singapore but not with UOB.

Connecting Xero to your business bank means all transactions go straight to Xero. This helps bookkeepers work quicker. Plus, Xero can be linked to PayPal or Stripe with added tools.

For more information, sign up for our Xero online course!

Set up payroll with Xero

Learning Xero Payroll can be challenging. It’s helpful as it processes payroll on its own and keeps everything together. You can see payments to staff and arrange them in the “Payroll Overview” area.

The issue with Xero Payroll is it doesn’t let you add custom details.² Such as bonus rewards for employees for monthly achievements. But, you can create a category for it in “Transactions” and give the bonus to the worker manually.

Set up invoicing with Xero

Invoicing is used a lot in Xero. Service businesses must make and send invoices. Click on “Invoicing” in “Accounts”. Xero wants to know what you’re selling. There’s a space to add more info and the customer’s email. (if you want Xero to send the invoice)

After the invoice is paid, Xero marks it as income in your records³. You just need to label the income.

Create a customer list with Xero

One problem that you may have noticed from creating an invoice is having to manually add a customer. Adding a customer’s details such as name and address repeatedly is tiring. Thus, you can create a customer list by going to “List” under “Contacts”. 

For more information on how to use Xero software, sign up for our Xero software training programs now!

Yes, you can. It is a fully cloud-based system. You can access it anytime from anywhere. Be it from an Internet enabled phone, tablet or computer. Multiple users can work on it at the same time.

Learning how to use Xero is not as difficult as you might assume. You don’t need an accountant to teach and hand hold you through everything. The software simple to use and user-friendly. But, it is recommended you have an accountant by your side. This will keep your finances straight and keep you well-informed.