Xero® For Dummies® 3rd Edition published by Wiley Publishing Australia Pty Ltd 42 McDougall Street Milton, Qld 4064 www.dummies.com Copyright © 2017 Wiley Publishing Australia Pty Ltd The moral rights of the author have been asserted National Library of Australia Cataloguing-in-Publication data: Creator: Smith, Heather Nicolette Title: Xero For Dummies / Heather Smith ISBN: 9780730334255 (pbk.) 9780730334262 (ebook) Edition: 3rd edition Series: For Dummies Notes: Includes index Subjects: Xero (Computer program) Accounting — Computer Programs — Handbooks, manuals, etc Dewey Number: 657.02855369 All rights reserved No part of this book, including interior design, cover design and icons, may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the prior written permission of the Publisher Requests to the Publisher for permission should be addressed to the Legal Services section of John Wiley & Sons Australia, Ltd, Level 2, 155 Cremorne Street, Richmond, Vic 3151, or email auspermissions@wiley.com Cover image: © Xero Limited and affiliates, 2016 Xero® and the Xero logo are registered trademarks of Xero Limited Typeset by SPi LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM THE FACT THAT AN ORGANISATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANISATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ Trademarks : Wiley, the Wiley logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Making Everything Easier, dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc and/or its affiliates in the United States and other countries, and may not be used without written permission Xero® and the Xero logo are registered trademarks of Xero Limited All other trademarks are the property of their respective owners Wiley Publishing Australia Pty Ltd is not associated with any product or vendor mentioned in this book Xero® For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Xero For Dummies Cheat Sheet” in the Search box Table of Contents Cover Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1: Getting Started with Xero Chapter 1: Getting to Know Xero Understanding the Advantages of Xero Exploring Xero’s Different Editions Homepage: Checking Out the Dashboard Understanding Your Team’s Needs Integrating Xero into Your Strategic Planning Taking Advantage of Support Options Using Xero in a Training Environment Chapter 2: Getting Organised: Setting Up Xero from Scratch Preparing for Set-Up Signing Up for Xero Understanding Bookkeeping Basics Setting Up Your Chart of Accounts Putting Your Accounts into Practice Adding Ways to Get Paid Tax Rates Chapter 3: Converting to Xero from Another System Preparing to Import Data from a Non-Accounting Program Getting Ready to Convert from an Accounting Program Importinsion, training, integration, consultation and ongoing support She specialises in management report development, data detox and cloud suitability scoping services From her home office in Brisbane, she remotely connects to businesses across the globe Over the years she’s helped literally thousands of small businesses, training them so they can DIY their own books and improve the accuracy and visibility of the numerical data within the business She loves creating meaningful business reports and identifying cloud efficiencies through Xero and by making connections within the Xero App Marketplace You’re invited to connect with Heather via her website: www.heathersmithsmallbusiness.com Your comments, corrections and suggestions are always welcome! Heather curates the Xero Mastermind online community and facilitates monthly meetups in Brisbane that focus on extending your Xero journey She’s the host of the Cloud Stories podcast, where she interviews some brilliant minds about their cloud journey She has written extensively about small business, accounting and technology, is an engaging speaker, and is the online community correspondent for the local radio station 612 ABC Brisbane Heather is a Chartered Accountant, a fellow of the Association of Chartered Certified Accountants (ACCA, in the UK) and a fellow of the Institute of Certified Bookkeepers (ICB), and she holds a bachelor of commerce degree This is her eighth business book During the eighties, Heather worked as a waitress at every hotel and restaurant on the Gold Coast to pay her way through uni During the nineties, she travelled extensively and worked in the UK, Singapore and Canada while completing her accounting qualifications Through the late nineties and the noughties, she created a global virtual consultancy business and kept abreast of technology advances, while being able to stay close to home and raise a family, Charlie the dog, four noisy chickens and a promising edible garden As her youngest leaves school, she’s contemplating life as a digital nomad! Author’s Acknowledgements Rod Drury, I am in awe of your vision and the disruption you’re creating in the accounting industry and for businesses globally It’s an honour to be able to contribute my writing skills to the Xero journey Thank you for your support — I’m ever so grateful you had the faith in me to pull this off Thanks also to my mum and dad, and all my family and friends Thank you to the small-business rock stars who educate, motivate and inspire me — I’m elated to be a part of your journey Thanks to Kerry Laundon for refreshing the existing text, and editing the new writing Thanks to Ingrid Bond for efficiently managing this project Also, thanks to the rest of the team at John Wiley & Sons Australia Pty Ltd Many thanks to the Xero staff around the world who have answered queries, called me and jumped online with me to run through processes, and those who have technically checked the book This is the 3rd edition of Xero For Dummies , and my heart warms to know that so many of you have supported me from the beginning of this journey So thanks to the extraordinary staff and partners of Xero — particularly Andrew Hirst, Justin Campbell and Steven Leaney, with special mention going to the remarkable and inspirational Trent Innes Special thanks to the Xero community who are together with me on this journey: The ORANGILICIOUS Catherine Walker, who — from the other side of the world — answers my queries with a chipper ^OG when I’m up at lonely hours tapping away at my keyboard; the awardwinning #SmokinHotBookkeepers; my Xero Heroes Gillian Rossouw, Lisa Martin and Melanie Morris, who are still here with me; my mentors and friends who’ve helped me on this journey — Jason Forbes, David New, Tracey Brittain Newman, Chris Wheatley, Cassandra Scott and the accounting maverick Wayne Schmidt; and the transcendent Sally Schmidt Thanks to everyone who answers my queries in the Xero Mastermind community on social media or shares their insight with me over coffee — with special mention to new friends across the ocean Sharon Pocock, Alex Falcon Huerta, Dan Schmidt, Amanda Aguillard, Blake Oliver and, finally, Giles Wilson, who used his super-hero powers to turbo-boost my internet speed — what every cloud consultant wants! Thanks also to my writing mentor and friend Valerie Khoo and the Australian Writers’ Centre community — who challenge and believe in my writing If you have a desire to write, a course with the AWC! Thank you to my family: Simon, Christopher and Charlotte Christopher, you’re hilarious and bring laughter and happiness into our lives — thank you for being you Charlotte, your energy and creativity light up a room — stay confident and unpredictable and thank you for being you Charlie, thanks for nuzzling my feet for endless hours, keeping me company and pestering me to take you on walks And thank you to my husband, Simon, who’s accommodated all my crazy writing hours None of this would be possible without you Thanks also go to you — for reading this book If you take a selfie with the book, share it on Twitter and tag @HeatherSmithAU — I’d love to hear from you All the best on your Xero journey Dedication This book is dedicated to Gayle Buchanan Publisher’s Acknowledgements We’re proud of this book; please send us your comments through our online registration form located at dummies.custhelp.com Some of the people who helped bring this book to market include the following: Acquisitions, Editorial and Media Development Project Editor: Kerry Laundon Acquisitions Editor: Lucy Raymond Editorial Manager: Ingrid Bond Production Technical Review: Xero Limited Proofreader: Jenny Scepanovic Indexer: Don Jordan, Antipodes Indexing The author and publisher would like to thank the following copyright holders, organisations and individuals for their permission to reproduce copyright material in this book: Cover image: © Xero Limited and affiliates, 2016 Xero® and the Xero logo are registered trademarks of Xero Limited Screen captures from Xero used with permission â Xero Limited and affiliates, 2016 Xerođ and the Xero logo are registered trademarks of Xero Limited Any data displayed in these images is fictitious, and any similarities with any actual data, individual, or entity is purely coincidental Microsoft Excel screenshots used with permission from Microsoft Every effort has been made to trace the ownership of copyright material Information that enables the publisher to rectify any error or omission in subsequent editions is welcome In such cases, please contact the Legal Services section of John Wiley & Sons Australia, Ltd Take Dummies with you everywhere you go! Go to our Website Like us on Facebook Follow us on Twitter Watch us on YouTube Join us on LinkedIn Pin us on Pinterest Circle us on google+ Subscribe to our newsletter ... image: â Xero Limited and affiliates, 2016 Xero? ? and the Xero logo are registered trademarks of Xero Limited Screen captures from Xero used with permission © Xero Limited and affiliates, 2016 Xero? ?... Book Where to Go from Here Part 1: Getting Started with Xero Chapter 1: Getting to Know Xero Understanding the Advantages of Xero Exploring Xero? ??s Different Editions Homepage: Checking Out the Dashboard... 3151, or email auspermissions@wiley.com Cover image: © Xero Limited and affiliates, 2016 Xero? ? and the Xero logo are registered trademarks of Xero Limited Typeset by SPi LIMIT OF LIABILITY/DISCLAIMER