Xero For Dummies - Heather Smith

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      Source: Xero 2022

      FIGURE 2-4: The Organisation Settings dashboard.

      

Enter your postal address information in the Contact Details area of the Organisation Settings dashboard and click Same as Postal Address to copy the details to the Physical Address/Registered Address column. You can then amend as necessary.

      

Capitalising the Town and/or City entries in your postal and physical addresses ensures correspondence is properly delivered — making this another efficient business practice.

      The final block of the Organisation Settings dashboard is the Social Links area. This enables you to connect with your customers via the online invoices that you send them — they can ‘like’ you on Facebook, tweet about you on Twitter, and/or connect with you on LinkedIn.

      

Before adding links within Xero to all the social networking sites you’re active on, you may want to consider your business’s social media strategy. For instance, you may opt to only add links to a Facebook business page rather than share your personal details by adding a link to your personal Facebook page.

      After adding social links, check that the links work — see Chapter 6, where you can explore online invoicing, for more details. (I did this recently and realised my links weren’t working and I had to correct them. Practising what I preach!)

      Once you’ve entered your details in the Organisation Settings dashboard, click the green Save button on the bottom right.

      Financial Settings

      Financial information about the business that may affect reporting parameters can be defined in the Financial Settings dashboard. At the sign-up stage, you indicated where the business is registered to pay taxes (refer to the section ‘Getting started’, earlier in this chapter, for more).

      

Where your business is registered to pay tax affects the options available through the Financial Settings dashboard in Xero. If at all unsure, seek specialist advice for your own particular circumstances.

      To access the Financial Settings dashboard, click on the organisation name in the top left of the screen and then select Settings from the drop-down list that appears. Click the link that says Looking for Advanced Settings? and select Financial settings.

      Xero next asks you to choose the consumer tax options for your region (refer to Table 2-1 for the options that may apply). If in any doubt about how to complete this section, check with your accountant or Xero Adviser.

      The next block is the Tax Defaults for Sales and Purchases block. From the drop-down menu, you can choose from four options: Based on Last Sale, Tax Inclusive, Tax Exclusive, and No Tax.

      

If UK users fall under the Construction Industry Scheme, they need to indicate if they are a registered contractor and/or subcontractor. You then enter your Unique Taxpayer Reference (UTR), Accounts Office Reference, Employer’s PAYE Reference, and the Subcontractor Deduction Rate, depending on the options chosen. If at all unsure on this, refer to your Xero Adviser, because this can’t be disabled once activated. UK users also need to enter their BACS Service User Number/Owner ID if they create a file from Xero that banks use to facilitate bulk payments (otherwise known as batch payments; see Chapter 7 for more).

      

Lock dates prevent users from altering accounts prior to and inclusive of the set date. Xero has two lock date fields. Use the first lock date to lock down the previous period. Use the second lock date to lock down the previous financial year. To do this, go to the Period Lock Date drop-down menu, select the date, and click Save.

      

Once the first lock date has been set by an Adviser, only users with Adviser status in Xero can edit accounts prior to and inclusive of this date. The Xero Adviser can also change the period lock date if required. Once the second lock date has been set by an Adviser, no user can make changes up to and inclusive of the lock date. The Adviser can change either lock date.

      The final field in the Financial Settings window is the Time Zone field, which you set up during the sign-up process. This should already be populated.

      When you’re happy with the details you’ve entered, click the green Save button.

      ADDING A SECOND LAYER OF SECURITY

      Xero Verify is an authenticator app that offers a second layer of security to protect against hackers accessing your Xero data. Using a protocol known as multi-factor authentication (MFA), Xero Verify sends a push notification to your mobile device when you log into Xero. Tap the pop-up message once to authenticate.

      Install the Xero Verify app on your smartphone from your Apple or Android app store, and then log in to Xero with your user name and password. Xero opens to an information page on this security feature. Once ready to proceed, click the button labelled Set Up Multi-factor Authentication. You can choose your authenticator app in the next window (either Xero Verify or another authentication app). Next, click the Use Xero Verify button, open the Xero Verify App on your smart device, allow access to your camera by clicking OK, and scan the QR code that appears on the Xero desktop screen. If you are on an Apple device, confirm that it’s OK to receive push notifications. Complete the setup by clicking the blue Continue button on the desktop screen. In case you cannot access your smart device, add a backup email or security question.

      The next time you log into Xero, enter your user name and password as usual. Xero will then send a notification to your phone. If it suits you, check the box beside Skip This Step for 30 Days on the desktop screen before grabbing your phone and clicking yes on the pop-up message from Xero. This step confirms that it’s you trying to access Xero. If the pop-up message goes MIA, Xero Verify generates an authentication code every 30 seconds. Next, open up the Xero Verify app and manually enter the authentication code into the Xero desktop.

      The single most important part of setting up any accounting system is the chart of accounts — think of it as the backbone of the accounting system, because all transactions are coded through these general ledger accounts. Don’t get confused — a bank account is a type of general ledger account, but not all ‘accounts’ are bank accounts. Getting your head around some bookkeeping basics before you set up your chart of accounts in Xero — so you can get them set up correctly

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