Xero - tips and tricks

[chaffcutter]

No you don't have to create a contra invoice. Enter the sale of the grain etc at the gross sale price, the n use a line for the deductions, I use one line for both the Weighbridge charge and the levy which both carry 20% VAT and enter this as a negative (minus) value, I code this as 'marketing costs' . If there is a cap load deduction which carries VAT I do the same on another line. Works fine with the VAT form no problem and gives you the nett amount received which reconciles with the bank account.

 

[Dairyfarmerswife]

No you don't have to create a contra invoice. Enter the sale of the grain etc at the gross sale price, the n use a line for the deductions, I use one line for both the Weighbridge charge and the levy which both carry 20% VAT and enter this as a negative (minus) value, I code this as 'marketing costs' . If there is a cap load deduction which carries VAT I do the same on another line. Works fine with the VAT form no problem and gives you the nett amount received which reconciles with the bank account.

That is simpler - don't know why the accountant didn't suggest that to me

 

[Steevo]

Well.....95 transactions down! It's quicker doing all that I was before in Excel.....but now the accountant wants more info put in.

Sales info - crop type, tonnage etc. Also adding in the weighbridge, levy as separate lines for VAT takes up time. Need to get the email system sorted out so suppliers send their invoices to my Xero inbox as well as to my email address. Would make that much quicker than hunting around through the inbox for the file, or on the computer for invoices I'd DIY'd myself.

Takes a bit of getting your head around...but I can see it'll probably be an improvement all round once I've got a system set up to make it all work smoothly and more automated.

 

[Dairyfarmerswife]

If you want more automation have a look at receipt bank. You, or suppliers can email invoices directly to it. It then generated an invoice which, when publishes appears in your drafts in zero with pdf attached. Open the draft, add line items where necessary and check vat is correct, and approve. I think there is a an option to have it strip out line items but it costs extra.

By the way I have tried the method discussed above for adding deductions to the milk cheque. Works great, can't believe I didn't do it before

 

[Steevo]

Thanks. I'd forgotten about receipt bank-seen it mentioned on here many times before.

Will have to google for some videos to see how it all works.

 

[Steevo]

If you want more automation have a look at receipt bank. You, or suppliers can email invoices directly to it. It then generated an invoice which, when publishes appears in your drafts in zero with pdf attached. Open the draft, add line items where necessary and check vat is correct, and approve. I think there is a an option to have it strip out line items but it costs extra.

By the way I have tried the method discussed above for adding deductions to the milk cheque. Works great, can't believe I didn't do it before

Will receipt bank handle income also like grain payments with weighbridge/levy etc? It looks like it's just payments sent not received.

 

[Chasingmytail]

Every partnership or sole trader has to be put online now to Xero or similar. I have set up Xero but my accountant is doing it all. Think its much more cost effective to get them to do all the faff then me sitting down working this out.

 

[Sid]

Every partnership or sole trader has to be put online now to Xero or similar

why?

 

[Clive]

Every partnership or sole trader has to be put online now to Xero or similar. I have set up Xero but my accountant is doing it all. Think its much more cost effective to get them to do all the faff then me sitting down working this out.

no legal obligation to do so that Im aware of ?

 

[Boysground]

My understanding is that the changes to the tax system were not put through Parliment due to the election, so everything is on hold for the moment. I went to a meeting with my bank a couple of weeks ago, their opinion was that should the government remain in power the digital tax would come back very quickly. Apparently the big agricultural software providers (I took this as Farmplan/landmark) have clopud based systems in development ready for the changes.

IIRC @Princess Pooper knows lots about digital tax, there is a thread running somewhere. This could cause massive issues in the industry as I know my accountants (the big farming one in the south west) have a large number of businesses still paper based.

As for Xero i spent a couple of hours with the accountant learning the basics, I used their standard heading codes to start, everything else I have learnt from the help pages which are excellent. I am not changing back.

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[Pasty]

My understanding is that the changes to the tax system were not put through Parliment due to the election, so everything is on hold for the moment. I went to a meeting with my bank a couple of weeks ago, their opinion was that should the government remain in power the digital tax would come back very quickly. Apparently the big agricultural software providers (I took this as Farmplan/landmark) have clopud based systems in development ready for the changes.

IIRC @Princess Pooper knows lots about digital tax, there is a thread running somewhere. This could cause massive issues in the industry as I know my accountants (the big farming one in the south west) have a large number of businesses still paper based.

As for Xero i spent a couple of hours with the accountant learning the basics, I used their standard heading codes to start, everything else I have learnt from the help pages which are excellent. I am not changing back.

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Who's the big one in the SW? SE? Still smarting over my last bill......

 

[Boysground]

Who's the big one in the SW? SE? Still smarting over my last bill......

Old mill. Moved about 10 years ago, wouldnt say they are the cheapest but wanted decent advice not just a calculation service.

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[Clive]

Does receipt bank have to go via an accountant

Looks a great service but would seriously increase my bill if every invoice went via our accountant

 

[Steevo]

Does receipt bank have to go via an accountant

Looks a great service but would seriously increase my bill if every invoice went via our accountant

Do you not use it (RB)? I assumed you did.

RB should accept all invoices enailed/photo's or scanned and sent to it. Basically make it electronic and send it to it and it will work. Apparently!

 

[Clive]

Do you not use it (RB)? I assumed you did.

RB should accept all invoices enailed/photo's or scanned and sent to it. Basically make it electronic and send it to it and it will work. Apparently!

no I dont use it but it looks useful (pricey though ??)

I use xero app built in scanner to photo receipts and invoices however especially for expenses claims and attach to invoices sometimes

 

[chickens and wheat]

the NFU are working to defer digital tax for farmers, Our account says farmplan are not prepared for the changes, Ive just gone over to xero , seems straight forward, Im just keeping invoices etc in an A4 folder for now will look at scanning them in when more practiced with xero.

https://www.nfuonline.com/news/consultations/making-tax-digital-our-response/

 

[Steevo]

no I dont use it but it looks useful (pricey though ??)

I use xero app built in scanner to photo receipts and invoices however especially for expenses claims and attach to invoices sometimes

Exactly what I'm doing currently.

I agree, it seems expensive for what it is compared to Xero itself....but I guess depends on value of time. I don't think it covers income though which is limiting. I got in touch with them and was advised I could try http://1tapreceipts.com/ which is part of it too. A fraction of the price(!!) for almost the same thing....but NO Xero integration!

 

[Dairyfarmerswife]

Does receipt bank have to go via an accountant

Looks a great service but would seriously increase my bill if every invoice went via our accountant

Nope. I think accountants use it too though. I particularly like it for fuel receipts etc.

Edit: also useful if you have a feed tray on your scanner is scanning a pile of invoices into a single pdf and uploading to RB. It divides them into separate invoices. Quicker than doing it manually through xero.

 

[Sid]

no I dont use it but it looks useful (pricey though ??)

I use xero app built in scanner to photo receipts and invoices however especially for expenses claims and attach to invoices sometimes

How well does it really work?
For instance with an invoice with split enterprises say some grease that's under machinery and some feed for livestock. How easy does it separate them out or does it have to be done manually with ease?

 

[Clive]

How well does it really work?
For instance with an invoice with split enterprises say some grease that's under machinery and some feed for livestock. How easy does it separate them out or does it have to be done manually with ease?

I imagine you would have to allocate them manually surely ? Just saves the initial input