Introduction to Xero Accounting Software for Beginners (2021)

by | Nov 5, 2021 | User Guides | 0 comments

Starting a business can be overwhelming and quite tricky at the same time. It requires more than just paperwork. You start with a business plan. You also add an estimated budget and everything related to the project’s financial feasibility that you wish to create. However, when the data starts to come, you don’t know how to put it together. Managing and organizing all of your data could be a difficult task, especially for beginners. Businesses usually hire accounting professionals, but that too might not be feasible for a start-up.

For organizing your data, there is multiple software available on the internet. The one we would like to highlight here is Xero Accounting Software – a cloud-based online accounting software. You can do all possible tasks that are related to finances and accounting on this software. It includes bank reconciliation, generating reports, managing your cash flows, and even a chart of accounts.

With Investment Working Group, you can learn how to manage your finances. As we pay great attention to helping you understand your numbers. Knowing financial health is the sole purpose of running a business, which is why we would want you to stay ahead of the game by managing your data correctly. Xero is one of the many tools that help you do so.

What is Xero?

Xero is cloud-based online accounting software with over 1 million subscribers from 180 countries, as reported in 2019. The reason behind is that its massive usage is it’s easy to navigate design with immense flexibility to customize the product. You don’t have to download and install the software because it is available online. So, a big task just got eliminated before you start working on it. Xero accounting software is a platform that will help you manage all the financial records. It also allows you to manage your personal financial activities in a synchronized manner.

The beautiful thing about this software is that people who aren’t accounting professionals can quickly learn, understand and use this to get a picture of what’s happening—the transparent, the better. Complex data can hide problems very quickly, especially in a grown business. This tool will let you monitor and manage your data and help you increase revenue. Most of the financial tasks will be simplified using Xero. Let’s take a deeper look at this tool so read ahead.

How is it helpful for business?

Xero Accounting Software can take all of the hassle required to keep up your financial records. It saves time, money, and effort and provides an organized, well-structured product. So, that’s a win-win situation. Especially for start-ups, it becomes easier for the team to keep everything on track or even identify a problem. Multiple team members can assess one company account simultaneously, so the picture gets clear to all.

Through this software, you can do almost everything you might need for any audit or tax payment as there are several options available to generate financial reports. Not only this, but it keeps you updated and alerts you if there is any financial task to be done, such as paying a bill or receiving an amount against a particular invoice. In short, it’s a managing tool for your business that is available online, provides secure cloud data. And above all, you can learn to use it easily.

Now let’s take a look at how you can set up your account on Xero Accounting Software. Don’t worry; it’s pretty easy!

Setting up an account with Xero.

Before we move on to different features and functions available in this software, we need to create an account.

How to sign up?

For first-time users, you need to sign up where some personal information is required. You will have to add your first name, last name, email address, contact number, and location. The sign-up screen would look like this.

Setting up account with Xero

Here, click on the security check to prove that you are not a robot. Then agree to t all the terms and conditions as are necessary for signing up. Click on the ‘next’ to get a confirmation text on the next screen. After doing so, you will get a confirmation email at the address you provided while signing up. Open the email and confirm that it is you to activate your account. Afterward, go back to the home page and log in by entering your email address and password.

30 days trial

As mentioned earlier, Xero is cloud-based software, so you don’t need to download, install or update the software. You need to pay for its subscriptions and offer multiple plans. However, you can try using its features for free by opting for a 30-days trial. The process for getting a trial is straightforward, login, and it will start your period. You will have access to almost all of the functions of this software. Thus, it allows you to test whether it will suit your business or not. Or how will you be managing your data here, and in what form? Another fantastic feature of this software allows you the transfer your data very quickly. Whether it is importing your data to Xero or exporting it into PDF, Excel, or Google sheets, all of these features are available in the trial as well.

Through this trial, you can get a;

  1. secure online accounting software
  2. help center to provide support and answer any query
  3. cancellation at any point
  4. chance to test and run all the functions for free

Making profile

Before adding any financial data to your account, you should set up your profile. The profile page is given below;

It includes all the essential information such as name, profile picture, job details, and a brief description of your business. Then there is a contact details section where you have to add a contact number and a website link. Save all this information by clicking on the green ‘Save’ button on the right bottom of your page. You can also choose whether you want your profile to be public or private.

Let’s take a look at the Dashboard.

After you set up your account and add all the personal and business-related information, it will land you on your dashboard. This dashboard will look like Lets take a look at the Dashboard

The dashboard will give you a snapshot of some critical data that you might need to monitor daily. The above dashboard highlights all the bills that you have to pay, the pending receivables. It shows a graph of cash inflows and outflows. You can customize Xero’s dashboard so you can add information here that needs to be considered every day. Also, you can change the layout by moving the boxes and once the editing is done, save all the changes. By looking at just this dashboard, most things will get clear at first sight, thus saving time and effort every day. You don’t have to search for papers or documents to tell you what’s going on in your books.

Xero’s Menu Bar

While staying on the dashboard, you can see the top blue bar, which has multiple tabs. This menu has links to all the other pages so that you can visit different sections from here. Whatever tab you open, this menu bar will remain on the top. This menu bar in Xero is added down below; Xero's Menu Bar

It is in the left top corner of the menu. Here you can see your organization name and logo mentioned in the left-most corner. If you click on this, you will get a drop-down menu to choose another organization account or settings. The menu has the following other options.

Xero's Menu Bar

Then comes the dashboard tab, as mentioned and explained above. After the dashboard, you have a tab of business. This tab will open up to offer different links where you can see the financial situation by opening purchase orders, invoices, bills to pay, and much more. So basically, all the activities are to be performed or have been performed. Also, it demonstrates the current situation in the form of business snapshots and overviews of expenses and revenues. The business tabs open up and have the following further links. Xero accounting software

The next comes the Accounting tab. This tab is all about financial reports and the accounting of a business. Here you can also manage a list of all the bank accounts to form a chart of accounts so that all the information is stored finely. Other than that, all of your starred reports are added to favorites and are mentioned in this tab. Xero accounting software

The last tab of contacts is where you can manage all your contacts. These can be grouped into customer contacts and supplier contacts. Thus, making it easy to locate.

The Final Word

Xero Accounting software is easy to learn and efficient in organizing your large or small data. It helps you get in order with your business’s financial situation and alert you if some transaction has to be done. All of its features are added up to a synchronized accounting system, thus helping you stay updated. Because the entire team, if given access, can see what’s happening, everyone stays on the same page, which is essential for running a successful business.


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