Part 1 - Getting Started

Starting out with a new accounting software is always challenging, however, with this guide, I’ll help you to set up Xero and introduce you to the basics so that you’ll be on your way to:

Before we more on, you’ll need some of your business information on hand. So collect the following:

  • Conversion date - this is something you decide, but it’s usually the beginning of a month. It separates things clearly so you know when things have started in Xero.
  • When your financial year ends - is it 30 June or 31 Dec.
  • Bank account details - you may have many e.g. paypal, commonwealth bank etc…
  • Details of any groups you owe money to and groups who own you money (called accounts payable and accounts receivable).
  • Logo
  • Your last invoice number.
  • Terms of payment - e.g. do you offer 30 days or immediate payment on receipt of invoice?
  • Time zone
  • Know what business type you are - sole proprietor, company etc…
  • Chart of accounts - if you don’t know what this is - here’s an explanation of what a chart of accounts is.

If you’re in Australia, you’ll also need:

  • ABN
  • BAS settings
  • GST accounting method - cash/accrual - here’s the difference between cash and accrual
  • TFN
  • GST calculation
  • PAYG withheld period
  • PAYG income tax method
  • FBT details
  • Fuel tax credit details (if applicable)
  • Wine equalisation tax detail (if applicable)

If you’re in New Zealand, you’ll need your:

  • GST number, basis and period

If you’re in the UK, you’ll need:

  • VAT registration number, period and scheme + BAC number

If you’re in other parts of the world (e.g. US, New Caledonia…), you’ll need your:

  • Tax ID name, number, basis and period.

Where to go from here - next steps

Part 2A: Setting up your Xero settings from the beginning (no previous system to manage your accounting - if you used a previous system, e.g. MYOB, Quickbooks etc.. go to Part 2B)
Part 2B: Converting to Xero from another accounting system.
Part 3: Creating a contact list
Part 4: Invoicing in Xero
Part 5: Making Purchases in Xero
Part 6: Doing a bank reconciliation in Xero

Next: SageOne or Xero - I'm going with SageOne & Saving $435 per year

Sign up to post comments

Have A Question?

Get in touch!