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Xero – Some Quick Tips and Tricks to Save You Time and Stress

Utilising Xero effectively can save you time and stress.  Here’s some simple tips and tricks to make life easier at your end and keep things running smoothly:

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• Asset Purchases or Sales: Remember to attach invoices and any applicable finance documentation to the transaction.
  
• Recording Overpayments From a Customer: If a payment exceeds the invoice amount, match the overpayment ‘against’ the invoice. You can then handle the excess as a credit to the customer against their next bill, or refund them the amount, whichever is the appropriate for the customer arrangement.
  
• Recording Underpayments or Partial Payments From a Customer: For underpayments, match the payment to the invoice and leave the remaining balance outstanding, so you can follow up with the customer to receive the remaining funds.
  
• Monthly Review of Accounts Receivable: Review your Accounts Receivable Report each month (at least), to ensure that all payments received from your customers have been correctly matched.  Make sure there are no customers showing, who have already paid you for the goods or services.
  
• Monthly Review of Accounts Payables: Review your Accounts Payable Report each month (at least), to ensure that all payments made to your supplier have been correctly matched. Make sure there are no suppliers showing who you have already paid.
  
• When Matching Funds Transferred Between Bank Accounts: When ‘matching’ transferred funds between accounts, ensure to also check the ‘date’ matches.  Not doing so often leads to matching to a transfer that was done on a different date.  This can lead to unreconciled transactions or the creation of a duplicate transaction.
  
• Opened a New Business Bank Account or Drawn a New Loan? – Don’t forget to provide us with account numbers, so we can get the transactions feeding to your Xero.

So, that’s it!  Some simple tips for you to implement that could save you some time and headaches down the track – and don’t forget, your Advanced Accounting team is here to help you during rain, hail, snow, or sunshine.

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