One of the most important decisions that you will make when it comes to your business is how to manage your bookkeeping. If you’re like most small businesses, you probably can’t afford to hire a bookkeeper which means that you need an accounting software program that is easy to use. If that’s the case, our free Xero courses are for you!
Xero is a cloud-based accounting software that does not require you to install any software on your computer. All you need is a computer with an internet connection and you can access your books from anywhere!
Whether you are a business owner with no accounting experience or a seasoned bookkeeper we have designed this course just for you! In this course, we guide you from beginning to end with setting up your books in Xero. Some of the topics that are covered are:
- How to import your existing chart of accounts or customize the default account list in Xero.
- Setting up the multi currency feature which allows you to bid, bill and transact in the currency that is most advantageous to your business.
- Connect your bank accounts to Xero so that your bank and credit card transactions are automatically downloaded for you.
- Set up payment services so that your customers can pay you online using a credit or debit card.
How to Convert from QuickBooks to Xero
Convert from QuickBooks to Xero: Are you looking for an accounting solution that does everything QuickBooks does and then some? If so, I think you will be happy with Xero. In this lesson, we walk you through the process of preparing your QuickBooks file for conversion. If your file meets the requirements to be converted, we show you how to upload your file to Xero so they can do the rest! Best of all, Xero provides this service at no cost to you!
Lesson 1: How to Set Up Xero
Lesson 1 is divided into 15 mini-lessons to walk to through setting up Xero. Below is a brief description of what you can expect to learn in each lesson:
Lesson 1.1: How to Set up Organizational and Financial Settings: In this lesson, you will set up your company contact information (email address and telephone number), tax id and business mailing address. The info set up here will be used throughout Xero on invoices, bills and tax forms that you create.
Lesson 1.2: How to Set up Invoices: In this lesson, you will create a branding theme (template) for all invoices, quotes, purchase orders and receipts. You will also set up customer and supplier payment terms.
Lesson 1.3: How to Set up Multiple Currencies: You will learn how to set up this feature so that you can invoice a customer, pay a supplier or manage a bank account in any currency that you need to!
Lesson 1.4: How to Set up Sales Tax Rates: In this lesson, we show you how to set up sales tax rates for all jurisdictions that you need to collect sales tax for. You will also learn how to use the sales tax lookup feature if you don’t know the sales tax rate that you need to charge a customer.
Lesson 1.5: How to Set up Chart of Accounts: Learn the basics of how the chart of accounts works as well as how to add, modify and delete accounts in Xero.
Lesson 1.6: How to Import a Chart of Accounts: If you are converting from another accounting software to Xero, you can import your existing chart of accounts from your old accounting software into Xero.
Lesson 1.7: How to Set up Products and Services: Learn how to set up your core products and services that you sell so that you can easily select these items from a dropdown when creating quotes, invoices or purchase orders in Xero.
Lesson 1.8: How to Import Products and Services: If you are converting from another accounting software to Xero, we will show you how to import your existing products and services list into Xero.
Lesson 1.9: How to Set up Customers: Learn how to keep track of customer contact details (e.g. address, email, telephone) as well as set up custom discount and payment terms for your customers.
Lesson 1.10: How to Set up Suppliers: Learn how to keep track of supplier contact details (e.g. address, email, telephone) as well as set up custom discount and payment terms for your suppliers.
Lesson 1.11: How to Import Customers and Suppliers: If you are converting from another accounting software program to Xero, we will show you how to import your existing customers and suppliers into Xero.
Lesson 1.12: How to Import Customer Invoices: If you are converting from another accounting software program to Xero, we will show you how to import any unpaid customer invoices into Xero.
Lesson 1.13: How to Import Supplier Bills: If you are converting from another accounting software program to Xero, we will show you how to import any unpaid supplier bills into Xero.
Lesson 1.14: How to Set up Account Balances: When converting from another accounting software program to Xero, you will need to bring over your existing account balances from your old system. We will show you how to take your Trial Balance report from your old system and enter the balances into Xero.
Lesson 1.15: How to Invite Users: The beauty of using Xero is that it is a cloud-based accounting software that allows you to give anyone (bookkeeper, business partner, CPA etc;) access to your data. You get to decide who gets access and what they get access to.
Lesson 2: Managing Banking & Credit Card Transactions with Xero
Lesson 2 is divided into 3 mini-lessons to guide you through managing banking & credit card transactions. Below is a brief description of what you can expect to learn in each lesson:
Lesson 2.1: How to Set Up Bank Feeds: In this lesson, we show you how to connect your bank and credit card accounts to Xero so that transactions automatically download into your Xero account. This will save you a TON of time that you normally would have spent manually entering transactions one by one.
Lesson 2.2: How to Reconcile Downloaded Bank & Credit Card Transactions: This lesson picks up where the previous lesson left off. In this lesson, we walk you through the steps required to categorize the bank and credit card transactions that you downloaded into Xero. We also show you how to perform a bank reconciliation to ensure that your bank account and your books are in balance.
Lesson 2.3: How to Manually Enter Bank & Credit Card Transactions: This lesson wraps up our how to manage bank and credit card transactions course with step by step instructions on how to handle bank service charges, debit/credit card charges and ATM withdrawals; we also cover receive money transactions such as tax refunds and customer deposits.
Lesson 3: Managing Sales & Income with Xero
Lesson 3 is divided into 5 mini-lessons that will guide you through how to manage sales and income for your business. Below is a brief description of what you can expect to learn in each lesson:
Lesson 3.1: How to Create an Online Quote, Bid or Estimate: In this lesson, we show you how to create a professional quote/bid/estimate that includes a detailed description and cost of products and services your customer may purchase from you.
Lesson 3.2: How to Invoice a Customer: In this lesson, we pick up where the previous one left off. We show you how to create a professional invoice to bill your customers for products and services that you have provided.
Lesson 3.3: How to Create a Credit Note: If you ever need to issue a refund to a customer for returned products or to reduce the amount billed on an invoice, you will need to create a credit note to do so. In this lesson, we walk you through the steps to create a credit note and apply it to an existing invoice.
Lesson 3.4: How to Receive Customer Payments: In order for your accounts receivable balance to remain up to date, you must record all of your customer payments in Xero. In this lesson, we show you how to record payment in full, partial payments and deposits received from customers.
Lesson 3.5: How to Create an Accounts Receivable Aging Report: All of the work that you have done in lessons 3.3 through 3.4 will be reflected in the accounts receivable aging report. This report shows you the amount of money your customers owe you along with the length of time it has been outstanding. This will help you to stay on top of your A/R balances so that you can follow-up with customers who have not paid invoices by their due date.
Lesson 4: Managing Bills and Expenses with Xero
Lesson 4 is divided into 5 mini-lessons that will guide you through how to manage bills and expenses for your business. Below is a brief description of what you can expect to learn in each lesson.
Lesson 4.1: How to Create and Manage Expense Claims: In this lesson, you will learn how to create an expense claim to reimburse an employee or business owner for business expenses paid with personal funds.
Lesson 4.2: How to Create a Bill: In this lesson, we show you how to keep track of all of your bills in Xero so that you can stay on top of what you owe to suppliers and other creditors.
Lesson 4.3: How to Mark Bills Paid Online: This lesson picks up where how to create a bill left off. Once you enter all of your bills into Xero, it’s important to update Xero with the payment information so that your A/P balance is always up-to-date.
Lesson 4.4: How to Pay Bills with a Check: In this lesson, we show you how to write a check directly from Xero to pay your bills. When you do this, Xero will mark the bill as paid and update your accounts payable and bank account balances for you!
Lesson 4.5: How to Create an Accounts Payable Aging Report: All of the work that you have done in lessons 4.2 through 4.4 will be reflected in the accounts payable aging report. This report shows you the amount of money you owe suppliers and other creditors along with the length of time it has been outstanding.
Lesson 5: Managing Online Payments with Xero
Lesson 5 is divided into 2 mini-lessons that will cover how to get paid faster from customers by allowing them to pay online and how to properly record credit card payments and fees from merchants in Xero.
Lesson 5.1: How to Accept Online Payments from Customers: In this lesson, you will learn how to connect a payment service to Xero so that your customers can use Paypal, a debit card or a credit card to pay their outstanding invoices.
Lesson 5.2: How to Reconcile Credit Card Payments & Fees from a Merchant: In this lesson, we show you how to properly record credit card payments received from customers and merchant fees deducted from your bank account in Xero.
Lesson 6: Reporting in Xero
Lesson 6 is divided into three mini-lessons that will cover each of the 3 key financial statements: Income Statement, Balance Sheet and Cash Flow Statement. You will learn why it’s important to review these reports regularly and how to create and customize each of these reports.
Lesson 6.1: How to Create an Income Statement: In this lesson, we explain what the income statement is and we show you how to run the Income statement and customize it to meet your business needs.
Lesson 6.2: How to Create a Balance Sheet Report: In this lesson, we discuss the importance of the balance sheet report and we show you how to run the report and customize it.
Lesson 6.3: How to Create a Cash Flow Statement: In this final lesson, we discuss the importance of understanding where your business stands when it comes to cash flow. You will learn how to run the cash flow statement and make changes to the report.
Nice work! Congratulations on investing the time to set up your books in Xero!
If you have any Xero related questions, let us know by leaving a comment in the comment section below. If you’re as big a fan of Xero as we are, leave a review.
Special Thanks from Fit Small Business
Fit Small Business extends a special thanks to Nick Pasquarosa, founder and CEO of Bookkeeper360, who offered his invaluable insight during the creation of this free Xero course. Bookkeeper360 is one of the largest 100% cloud-based bookkeeping solutions providers in the United States. Bookkeeper360 is a Xero Platinum Partner and has a full-time staff of certified Xero bookkeepers, tax preparers, sales, and relationship specialists. Nick’s contributions are greatly appreciated.