Xero Bookkeeping
Xero set up properly, fixed when it has gone wrong and kept accurate month to month, so the dashboard shows what is really happening in your business.
What I take care of
- A review of your Xero file: what is working, what is wrong and what to fix first
- A chart of accounts that suits how your business actually runs
- Bank feeds connected and reconciled, including credit cards, loans and payment platforms like Stripe or Square
- Bank rules reviewed, because a rule that codes the wrong way does it hundreds of times
- Duplicates, unapplied payments and old unpaid invoices and bills found and fixed
- GST settings checked on accounts, contacts and items
- Bills, receipts, invoicing and payroll set up to flow into Xero cleanly
- Adviser access for your accountant, and reports you can actually read
Xero is only as good as what goes into it
Xero makes bookkeeping faster, but it doesn't make it right. The bank feed brings transactions in, and the reconcile screen makes it very easy to match them to the wrong thing. It is common to find files where every account shows as reconciled but the numbers are still wrong: payments matched to the wrong invoices, transfers between accounts recorded as income, customer payments counted as sales twice, and bank rules quietly claiming GST on purchases that didn't include any.
The dashboard can look perfectly healthy while all of that is going on. Good Xero bookkeeping means checking the balance sheet and the GST, not just clearing the reconcile screen.
Common Xero problems I fix
- The bank balance in Xero doesn't match the bank statement.
- Hundreds, or thousands, of unreconciled transactions.
- Duplicates from a bank feed that was reconnected or a statement imported twice.
- Invoices showing as unpaid when the customer paid months ago.
- Bills paid twice, or paid but still showing as owing.
- Stripe, Square or PayPal deposits recorded as the net amount, hiding the fees and throwing out GST.
- Loan repayments coded entirely as an expense, rather than split between the loan and the interest.
- A chart of accounts with dozens of accounts nobody uses.
- Suspense or "uncategorised" accounts full of unknown items.
- GST reports that don't match what was lodged.
If you recognise several of these, it is worth a proper review before your next BAS. For files that are months behind as well as messy, see bookkeeping catch-up and clean-up.
Setting up Xero properly
If you are new to Xero, or your file was set up in a hurry, a sound setup saves years of confusion. That means a chart of accounts that reflects how you actually earn and spend money, correct GST defaults, bank feeds for every account including credit cards, invoice templates that look professional, sensible bank rules and, if you have staff, payroll set up for STP and Payday Super.
I also set up how documents reach Xero, whether that is emailing bills straight into Xero, photographing receipts on your phone or another routine that suits you, so nothing depends on memory.
You stay in control, and you understand what you are looking at
It is your Xero file and your business, and you keep full access. As part of ongoing work I show you the handful of reports worth checking: the profit and loss, the balance sheet, who owes you money and what you owe. If you want to keep doing some of the work yourself, such as raising invoices or approving bills, I set things up so that fits cleanly alongside what I do.
Xero and your accountant
Your accountant can have adviser access to the same Xero file, so there is one set of books rather than spreadsheets emailed back and forth. At year end they work straight from reconciled figures. If they prefer certain accounts or reports set up a particular way, I follow their lead.
What working with me looks like
You deal with me directly from the first call onwards.
- 01
Review
I look through your Xero file and tell you what is working, what is wrong and what it will take to fix, before any work starts.
- 02
Fix
Reconciliations, duplicates, old invoices and bills, GST coding and the chart of accounts are put right, period by period.
- 03
Set up the routine
Bank rules, document capture, invoicing and payroll set up so the file stays tidy.
- 04
Keep it right
Ongoing bookkeeping on an agreed schedule, with month-end checks and a short update.
Questions about Xero Bookkeeping
Can someone fix my Xero file if it is a mess?
Yes. Most messy Xero files can be fixed without starting again. I review the file first to see what is wrong and how far back it goes, then correct the reconciliations, duplicates, unpaid invoices and bills, and GST coding period by period. Where errors affect a BAS already lodged, I work out whether and how they need to be corrected with the ATO.
Xero says everything is reconciled. Does that mean my books are right?
Not necessarily. Reconciled only means every bank line has been matched to something. It doesn't tell you the match was right, the GST was coded correctly or the balance sheet makes sense. A quick first test is to compare the bank balance in Xero with your actual bank statement on the same date.
Should I do my own bookkeeping in Xero?
Plenty of business owners start that way, and at low volumes it can work well. It is worth handing over when it is eating into your evenings, when you take on staff, when BAS turns into a scramble or when you are no longer confident the numbers are right. A middle ground works too: you raise invoices and I do the reconciling, checking and BAS.
Do you train people to use Xero?
Not as a course. My service is looking after the books for you. Along the way I am happy to show you how to raise invoices, approve bills and find and read the reports that matter to you.
I use a different accounting package. Can you still help?
Xero is what I work in day to day. If you use something else, mention it when you get in touch. We can talk about whether it makes sense to stay where you are or move to Xero, and when a switch would be cleanest.
Will my accountant be able to see my Xero file?
Yes. You can invite your accountant as an adviser user so they see the same file I work in. That usually saves time, and questions, at year end.
Talk it through with me
Send a short note about what’s going on. I usually reply within two business days to arrange a free introductory call, and I’ll tell you honestly whether I can help. You don’t need to get anything ready beforehand.
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