Setup

We walk you through the process of setting up your new Xero account

If you don’t have this information, you can pass the steps in the setup process. You or someone with the Adviser user role can go back to complete or change what you’ve entered during or after the setup process.

  1. Legal name and ABN (Australian Business Number) of your organisation
  2. Financial year end for your organisation
    Most organisations in Australia use 30 June, but you can use something different.
  3. Activity Statement Settings for your organisation if registered (tax file number, accounting method, calculation and PAYG withheld period, PAYG income tax method and whether or not you claim fringe benefits, fuel tax credits and excise).
    This information will be in your Activity Statement, if you’ve filed one before.
  4. Logo, payment terms and a starting point for your invoice/credit note numbering sequence
  5. Email address of your accountant or bookkeeper or someone else to help set up your organisation (if you need help). Ours is [email protected]
  6. Your chart of accounts or a list of categories to organise your accounts by (for example, Rent, Stationery, Sales)
  7. Your bank and credit card account numbers for accounts you want to set up in Xero
    • in the future, if you want to get Xero set up before you start using it
    • in the past, if you want to recreate your account back to then
    • that’s different to the start of your financial year.Conversion date
      The date you want to start using Xero for your day to day business.

      Important tip. Tips for choosing a conversion date

      Conversion dates in Xero start on the 1st of a month. The month you choose will depend on how you currently manage your accounts and what data you want to bring across. We suggest you choose:

      • the month your current GST period starts from, if you’re GST registered, or
      • the current month, if you aren’t GST registered.

      You can choose a conversion date. Consider these things when choosing a month:

      • Choose a month you are happy to get past data for.
  8. As at the day before your Xero conversion date, you’ll need
        • account balances
        • individual unpaid invoices, bills and credit notes
        • uncleared funds.

    As far back as your conversion date, you’ll need:

      • existing invoices and bills
      • bank account statements to import into Xero.
    • If you choose a conversion date that’s part way through your current GST period you won’t be able to run an accurate GST Return for that period in Xero. This is because Xero won’t have all the relevant transactions to calculate the GST from.
  9. Account balances
    If you have balances to enter into Xero it’s better that you get them right at the start.Run reports from your previous accounting system for account balances as at the day before your Xero conversion date. If you don’t have reports, use the balances from your bank accounts or chart of accounts/categories.Not sure how to work out your balances? Ask your accountant or bookkeeper.
  10. Packing and shipping. Remember to keep the management of the packing of your product in order to have a good feedback and business visualization plus service. The shipping can be easy with the Best Pick and Pack Logistics, so you can have the best service as they can pack and ship where ever you need to.
  11. Outstanding invoices, bills, credit notes and uncleared funds
    You may have outstanding invoices and credit notes from your previous accounting system. Use these to work out the amount owed to you and that you owe from your conversion date.If you have uncleared funds (or unpresented cheques) – essentially the difference between your actual bank account balance, and balance in your previous accounting system – you’ll also need this amount.

While you’re setting up your organisation in Xero, enter your organisation’s details including its legal/trading name, type of organisation, address, and social media links. You can get to this information outside of the setup process as well so that you can complete or update it at any time.

About the organisation name and type fields

The display name is the name you’ll see in Xero. The display name is also your organisation’s contact name when you send invoices from Xero to Xero.

The legal/trading name is the name that will appear by default on:

  • financial reports
  • your outgoing invoices.

Either name can be up to 225 characters in length. The display name will be truncated if it doesn’t fit on the dashboard or in the top navigation bar of every Xero screen. In reports, the organisation name will always show in full, no matter how long it is.

The organisation type you select will determine the type of reports contained in your Annual Accounts.

Enter a specific description of what your organisation does in the line of business field. This field will automatically suggest descriptions as you begin typing, based on what others have entered. If none of the suggestions apply to you, just enter your own unique description.

Enter your 11-digit ABN number if you are registered with the Australian Business Register (ABR). The number will display on your customer invoices if you have chosen this setting as part of your PDF branding theme. If you edit this number, all PDFs generated from now on will show the updated number.

Enter your organisation’s contact details

Enter your organisation’s contact details, including:

  • postal address
  • physical address
  • social media links.

Organisation contact details screen

You don’t have to enter address details, but your postal address will appear on invoices using a standard branding theme (whether or not you make it public in your profile).

You can change your address for invoices using invoice branding if you need to, or remove it altogether, at anytime.

If you leave the postal address blank, your address won’t display in an invoice (except the ABN if you provided this above).

Add social media links for online invoices

Add links to your organisation’s:

  • Facebook page
  • Twitter account
  • LinkedIn profile
  • Google+ account.

These links appear on online invoices you send to your customers, so they can connect with you.

When you set up your organisation in Xero, enter your organisation’s financial details including its year end and GST settings.

The financial information you’re asked to provide is used in the production of financial reports and print versions of invoices, bills and credit notes so for these to generate accurately you will need to enter the information asked for on this screen. If you are unsure about the financial information asked for, you might like to wait until you have consulted your accountant or bookkeeper.

You can get to this information outside of the Setup Guide as well so that you can complete or update it at any time.

Financial settings

Choose your financial year end

This will be set to June by default. In other words, for a financial year that runs 1 July – 30 June. You can change this date if you need to. The year end date is used to calculate and generate financial reports.

Important tip. Avoid changing your financial year end once you’ve set Xero up for your organisation and saved your conversion date, entered conversion balances and comparative balances. If you do, this will impact your balances and reports.

Activity Statement Settings

When you first create an organisation some of these settings are set by default, others you will need to complete.

If you are registered for GST this information will be on your Activity Statement or other income tax material you have from the Australian Tax Office (ATO). Choose from the options in Xero to match your registration – depending on your organisation you may need to complete some or all fields

  • GST Accounting Method – choose Accruals or Cash basis depending on your organisation’s GST registration – this field is mandatory. This is set to Accruals by default. Your choice will determine which transaction dates are included in the date range you run your Activity Statements report for.
    • If you choose Cash basis: the Activity Statement will be run based on the date you made or received payments for invoices, bills and expense claims and the date you entered Spend or Receive Money transactions in your bank account.
    • If you choose Accruals basis: the Activity Statement will be run based on the invoice date or in the case of expense claims the ‘Reporting date’. All other reports in Xero are based on the actual transaction date. For example, Spend or Receive Money date, invoice date, expense claims reporting date. If your company is not registered for GST choose ‘None’.

    Only change this status if you fully understand the necessary GST requirement for all accounts within the Chart of Accounts.

  • Tax file number
  • GST Calculation – choose the frequency with which you submit your Business Activity Statement (BAS). Xero will automatically display it at these times with the GST amount to pay already filled in based on this period. You need to choose an option in order for Xero to generate a BAS.
  • PAYG Withheld Period – this will determine the frequency that Xero presents an Instalment Activity Statement (IAS) or displays PAYG tax withheld boxes on the BAS. You need to choose a period in order for Xero to generate an IAS.
  • PAYG Income Tax Method – this will determine the fields you need to complete on the BAS or IAS for your income tax instalment.
  • Fringe Benefits, Fuel tax credits and Wine Equalisation Tax as relevant to your business.
  • Once you have specified these options, Xero will automatically generate either a BAS or an IAS.

Important tip. You’ll need to complete the Activity Statement information here. It needs to match the Activity Statement form you’ve received from the ATO. Make sure you complete the Activity Statement settings before you rely on any of the GST-based reports.

Time zone settings in Xero

The time zone setting in Xero determines what date and time is shown for those items that are tracked, for example, where a history is kept on transactions or when a user logs in. For more information on what is kept in the transaction history, see History and Notes. The time zone also determines what your current date is when entering any transactions or running reports that default to today’s date.

The time zone is set for Australia by default but you can change it.

While you’re setting up your organisation in Xero, you can use invoice settings to set up invoice numbering or payment terms, or change the appearance of sales invoices, quotes and statements you print or email.

You should do this now if you want to send invoices, credit notes, quotes, prepayments, statements, purchase orders, receipts or remittance advices right away that:

  • have your own numbering, or
  • have default payment terms (due dates), or
  • look different from ones produced using Xero’s standard branding theme, or
  • don’t include links to outstanding bills online.

After you’ve finished setting up your organisation, you’ll be able to add more standard branding themes and of course set your shipping and delivery options with pick and pack fulfillment South Carolina. You’ll also be able to add DOCX themes to fully customize the appearance of sales invoices, credit notes, quotes, prepayments, statements and purchase orders.

 

Automatic number sequence

Define the number Xero uses when you add your next sales invoice, quote, customer credit note or purchase order.

Payment terms

Set up default due dates for bills and sales invoices for your organisation.

After you’ve finished setting up your organisation, you’ll be able to add custom due dates for individual contacts.

Show outstanding bills

Remove or include a link on online invoices to show all outstanding bills for a contact.

As the ‘Subscriber’ (the person who created this organisation) you are the only person with access to your organisation until you invite another user. If you want your accountant or bookkeeper to see what you’re doing or complete any steps on your behalf, enter their details on the Invite Users screen and set them up with the Adviser user role. They’ll receive an email invitation to log in to your organisation.

Not all invited users can log in during setup. For example Invoice Only or Cashbook Client users won’t receive an email invitation to log in until after your Xero organisation has been set up.

You can invite as many people as you like into your Xero organisation but you don’t need to do this right away. You might prefer to just invite your accountant or bookkeeper if you need help now, and wait to add your other users until after you’ve finished setup.

Invite a new user into your organisation

Go to the Invite Users step of the Setup Guide and click Invite a User.

Click Invite a User to enter a new user’s details.

Click 'Invite a User' to enter details for a new user.

Name & email address

Enter the name and email address of the user you want to add (mandatory). The Xero invitation will be sent to the email address you enter.

Access to the accounts

Choose a role for the user. The role sets the level of access they have to your Xero organisation to view and enter information or make changes.
User roles in Xero

We recommend you give your accountant or bookkeeper the Adviser user role. This role lets them make sure your accounts are financially accurate.

Click Continue to save

Click Continue. The user will be saved and added with a ‘Pending’ status to your list of users and an email invitation (below) will be displayed for you to edit and send inviting the new user to log in.

The user will remain in a Pending status until you send the invitation – you can access their user details to make any changes and resend the invitation as required.

If you don’t want to invite someone else from your organisation now, but want to invite Xero Support, just click Cancel to access the Invite Xero Support button.

Personalise your email invitation and send

Enter your own email message or use the default text. Click Send Invite when you’re ready to send the email.

The invitation will be sent to the email address you entered on the previous screen. In addition to your message, the email will contain instructions for accepting the invitation, accessing Xero and logging in.

Invite email.

An invitation is valid for 14 days.

Pending users decline or accept invitation

If you need an invited user’s help during setup, make sure you don’t click ‘Finish’ on the final step. Once you’ve clicked ‘Finish’ you can’t access the setup steps again (but someone who has the Adviser user role can still access the same information within Xero if required).

If a user you have invited declines the invitation, you will receive an email about it. The user’s status will change to ‘Declined’.

If a user accepts the invitation, their status will change to ‘Active’. If they change their email address when they accept the invitation, the address will update in Xero automatically.

This video tutorial will address the use of bills and purchases in Xero.

This video tutorial covers the reporting system within Xero:

Core functions

Learn how to use the core features of Xero

The Xero dashboard provides with you with timely and important information about your business.

Cloud Accounting software like Xero makes it more convenient than ever to collaborate on your bookkeeping. Business owners, administrative staff and trusted advisors can now access data in real time, and the level of access can be adjusted as required.

Of course convenience can often lead to complacency, so it’s important to regularly review who can access what within your Xero financials account.

The following video demonstrates the process of managing user access to your Xero financials account.

In this video we explore the Chart of Accounts – the cornerstone of any good bookkeeping process!

One of the greatest features of Xero is live bank feeds. In this video we discuss the process of matching the transactions (i.e. money coming in and out of your accounts) to reconcile your accounts.

This tutorial will address sales and online invoicing in Xero.

This video tutorial will address the use of bills and purchases in Xero.

This video tutorial covers the reporting system within Xero:

Usage scenarios

Learn how to use Xero to support common business activities

The Xero dashboard provides with you with timely and important information about your business.

Cloud Accounting software like Xero makes it more convenient than ever to collaborate on your bookkeeping. Business owners, administrative staff and trusted advisors can now access data in real time, and the level of access can be adjusted as required.

Of course convenience can often lead to complacency, so it’s important to regularly review who can access what within your Xero financials account.

The following video demonstrates the process of managing user access to your Xero financials account.

In this video we explore the Chart of Accounts – the cornerstone of any good bookkeeping process!

One of the greatest features of Xero is live bank feeds. In this video we discuss the process of matching the transactions (i.e. money coming in and out of your accounts) to reconcile your accounts.

This tutorial will address sales and online invoicing in Xero.

This video tutorial will address the use of bills and purchases in Xero.

This video tutorial covers the reporting system within Xero: