No one buys Xero because they want to buy Xero. You buy and use Xero because you want to measure and improve the financial results of your business and our Xero training can help you..
The sharp end of Xero is the reports that provide a window in to your business.
But too many users get bogged down with the data entry and don’t spend enough time looking at the wealth of financial information that could be available.
There’s a long list of the reports available in Xero when you select “Reporting” from the main menu and then click on “All reports”
The basic reports are already set up as Favourites and they include:
Run these reports and familiarise yourself with what they mean and how they can help you run your business.
➡️ The real magic starts when you learn how to customise these reports so they fit your business exactly and tell you what you need to know. Watch a simple example in the related articles below.
But – however well you customise them, your reports will only be as good as your data entry. Two points are worth considering.
Tracking Categories
Many businesses find it useful to measure profits and performance by activity, product or service categories or by location. You can do this in Xero – they call them “Tracking Categories” and you’ll find them in the Accounting section of your settings.
Chart of Accounts
The Chart of Accounts (CoA) is the list of all the account classifications you can use to classify your financial transactions e.g. sales, recruitment costs, rent, bank loan etc.
The biggest mistake we see Xero users make is they think the CoA that comes as standard should just be accepted and can’t be changed.
Your CoA is the DNA of your accounting, it feeds directly into your reports. Mould it to reflect your business.
➡️ Build a Chart of Accounts in Xero – Don’t fence me in
This is why financial reports are so important to any business and Xero can give you all the financial insight you need.
But it helps to start at the end and work backwards.
Work out what financial information you need to run and improve your business and then:
It’s a bit like looking through the wrong end of the telescope.
But the view is so much better.
➡️ Know your numbers, don’t get lost in the fog
We run half-day Xero training sessions, one to one, where we work with you to process your transactions in your Xero.
We look at the full spectrum of Xero – from data entry to reports – and the objective is to make Xero come alive for you. Find out more here.
And if you’re not quite ready then book a free 30 minute review** of the reports you use in Xero. We can jump on Teams or Zoom, take a look at the reports you’re using in Xero and identify some areas for improvement.
There’s no time like the present so why not get in touch?
📞 call Michael Austin on 020 7125 0270 or
📧 info@bluedotconsulting.co.uk
Michael
Related articles:
📽️ Create and save a useful Debtors report in Xero
This must be my profit, it says so on my phone
Why don’t more businesses make better use of their accounting software
** Free 30 minute review – terms and conditions apply
Our work with Xero users across Central, West and South West London gives us a close-up view of how businesses in areas like Fulham, Hammersmith, Richmond, Wandsworth, Kensington and Chelsea are adapting and growing. If you’d like to explore how these insights could apply to your business, we’d love to hear from you.
© Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW
We don’t believe in forms, we believe in talking to people, finding out your needs and tailor-making a solution just for you.
Give us a ring on 020 7125 0270 or email us at info@bluedotconsulting.co.uk
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