Xero - tips and tricks

[Steevo]

Just starting to use Xero for the new tax year onwards. Set up the bank account, can create rules ok, and starting to get the hang of it.

What else should I know?

Any tips and trick appreciated! I'm planning to watch some of the Xero Youtube videos before long too.

 

[Boysground]

I have all the machines I keep records for on 1 of the tracking lists. The other has harvest year so chemicals fertiliser etc can be easily allocated to a harvest with my April year end.

I put invoices in as a bill when they arrive not when I pay them (which I did on my old system) you then see exactly what is owed even if you don't want to pay it.

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[Boysground]

Have you got the bank feed sorted? Can be a faff to start with.

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[Steevo]

Tracking lists?
Do you find it easier to put them on first, rather than by bank feed? Currently working on cash basis so have normally just done it off bank payments.
Bank feed all sorted - gone with Yodlee to start with to get it set up easily. Will be changing to direct feed shortly though as it seems much more accurate.

 

[ARW]

The more time you put into it the more time it saves you long term!
It's good to see how much and who owes you and how much is going in and out each month.
I hate using it ATM as it's seriously annoying me how many thousands we are owed dating back into agust last year

 

[Boysground]

I use yodlee. Try and update the feed every weekend when the bank is definitely doing nothing just to be sure there are no double lines. Had it once and was a pain to sort.

I am now used to putting invoices on as they arrive and I do prefer it. Enter each invoice separately even for the companies that send multiple invoices in one envelope. I use the invoice number as the reference. Then when you pay multiple invoices to 1 company in a single payment the remittance that Xero creates lists each separate invoice that has been paid. If you enter an email in the contacts the remittance will be sent to this address. Helps everyone know what has been paid.

Also I try to get as much sent to me by email as possible then it's easy to upload the PDF to the appropriate Xero transaction.

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[Boysground]

Tracking is very useful

https://help.xero.com/uk/Settings_Tracking

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[Steevo]

What do people do about rounding errors where an invoice/receipt shows a different amount?

Transaction on receipt:

£8.00
£1.59 VAT
£9.59 total


Xero works it out as

£1.60 VAT
£9.59 total

 

[Dairyfarmerswife]

What do people do about rounding errors where an invoice/receipt shows a different amount?

Transaction on receipt:

£8.00
£1.59 VAT
£9.59 total


Xero works it out as

£1.60 VAT
£9.59 total

Ignore it. The vat people aren't bothered about a penny.

 

[Clive]

Use the app to track expenses and scan any paper invoices to attach

 

[Clive]

Also there is a good app for employees to keep their time sheets / request holiday etc - they then submit them so you don't have to enter hours from part time sheets

 

[Boysground]

Also there is a good app for employees to keep their time sheets / request holiday etc - they then submit them so you don't have to enter hours from part time sheets

Do you do your payroll on xero clive? How do you get on with it?

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[Dairyfarmerswife]

I like receipt bank for generating invoices. Scan and email or photograph in the app, it sends a draft invoice into Xero with the pdf/jpeg attached.

 

[Clive]

Do you do your payroll on xero clive? How do you get on with it?

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Yes use it on all businesses - its very good, couldn't be simpler really

 

[Steevo]

What's the best way to handle grain sales payments?

i.e. grain levy, weighbridge, etc.

 

[Dairyfarmerswife]

Raise a sale invoice to the purchaser for the total amount of the grain sold eg £100. Receive the net amount against the invoice, into the bank, eg £95. Receive the balance £5 into the Suspense account, I think it's code 850. Then raise a purchase invoice for the levy, weighbridge, from the purchaser (for the same amount as the amount received into Suspense) making sure to use the correct vat codes. Then pay that invoice from Suspense. This should leave a zero balance in Suspense and allow you to claim any vat.

 

[Steevo]

Raise a sale invoice to the purchaser for the total amount of the grain sold eg £100. Receive the net amount against the invoice, into the bank, eg £95. Receive the balance £5 into the Suspense account, I think it's code 850. Then raise a purchase invoice for the levy, weighbridge, from the purchaser (for the same amount as the amount received into Suspense) making sure to use the correct vat codes. Then pay that invoice from Suspense. This should leave a zero balance in Suspense and allow you to claim any vat.

Heck! That seems farm more complicated than I had been expecting.

 

[Dairyfarmerswife]

Hmm maybe I've made it sound difficult. That's how I do the milk cheque and auction sales. It really isn't when you get the hang of it. Are you familiar with creating invoices and allocating payments against them?

 

[Clive]

Hmm maybe I've made it sound difficult. That's how I do the milk cheque and auction sales. It really isn't when you get the hang of it. Are you familiar with creating invoices and allocating payments against them?

Why use suspence ?

Just create a purchase invoice to match against the payment with lines for wrighbridge snd levy etc with vat correctly delt with where req in those lines ? You can allocate different vat rates to different invoice lines

 

[Dairyfarmerswife]

If I have understood Steevo correctly, he is talking about selling some grain and dealing with the deduction for levy etc. So the payment for levy never physically goes out of the bank account. You can't create a bank payment because there would be nothing to reconcile against it on the bank statement. Also the payment received for the grain isn't forgot the full amount of the invoice you raise. You therefore have to create a contra invoice.