Xero is online accounting software for your small business that makes keeping track of finances and running your business easier than ever. While Xero’s designed to make things even easier for you, if you don’t use the software properly, you could make things harder on yourself. However, it’s easy to avoid these simple Xero mistakes — and use Xero with ease — in order to ensure that your operations are smooth. Here are some common Xero mistakes you’ll want to avoid.
1. Incorrect Reconciling
When you reconcile your account, you make sure that the account balance is actually correct. However, it’s easy to make a mistake when reconciling manually, which can throw everything off. Instead of reconciling manually, use IntegraPay + Xero’s auto reconciliation function. It can help ensure that your balance is correct and avoid the possibility of human error.
2. Assuming Your Emails Are Stored
Don’t always assume that your emails are stored in Xero. If you need a copy of an email you exchanged with a client, customer or vendor, make sure you select the option that Xero gives you to have a copy sent to your own email inbox.
3. Not Using Expert Help
We get it, you’re not an accountant or a techie so you might get confused when you first learn how to use the software. Luckily, for you, though, Xero provides Expert Help which can walk you through any problem you might be having. One of the silliest mistakes you can make when you use Xero is not taking advantage of this expert help.
4. Using the Incorrect Invoice Type
There are many types of invoices you can use on Xero. Make sure that you use the right one for the right clients/customers so that you ensure you get paid the right way and have a clear record of it.
5. Keeping Old User Accounts
Once someone at your business leaves (or no longer handles accounting), get rid of their old user account. Old user accounts use up unnecessary data and can get confusing if they are full of outdated and incorrect information.
6. Not Making Use of Demo Company
Xero gives companies 30 days to demo the product for free. Don’t sign up for Xero and forget to see if it’s right for your company. You can use the 30-day trial in order to get your system in place so that you are sure you can use it effectively once you start subscribing for the service.
7. Not Realizing the Subscriber Owns the Data
When you use Xero, you become a subscriber. Yet, no matter how often you use the program and how much information you put in, you still own that data. This means that you shouldn’t worry about losing that information to the software company — it’s yours to keep.