How To Manage Customers & Create Invoices in Xero

If it says, “Switch to classic invoicing,” then you’re on the New invoicing screen. We created our tutorials to help you better understand how to use Xero, one of our best small business accounting software. You’ll receive the most benefit from this by following along in your own account. If you don’t yet have one, you can try the platform for free for 30 days, no credit card required. We recommend you send your Zahara orders to your suppliers in a “True” nature – ie £100 + VAT – so use the correct 20% tax rate code for orders.

Classic invoicing requires you to enter all the information manually while New invoicing prefills many of the details for you and saves your work automatically. When you add or import new contacts, they will automatically appear in the All group. Once you have entered an invoice, bill, or credit transaction for a customer, its classification will change to Customer or Supplier. Click the ‘Paid’ box to open up the list of invoices awaiting payment. Then, click the ‘Awaiting Payment’ box to open up the list of invoices awaiting payment.

Step 2: Create a New Invoice in Xero

When you’re finished entering the Contact Information and Financial Details, be sure to click the Save button. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Tax Inclusive – This means https://bookkeeping-reviews.com/ that the number you put in for each of the line items with include whatever tax rate is there. So your subtotal with be the amount that includes the tax within it. The “tax” amount is just showing how much tax was included in the subtotal amount.

• This will mean existing entries will be disabled or deleted if they already exist in Xero and can be synced back into Zahara.
• Then, we have decided to change the settings in A2X from ‘Group Sales by SKU’ to ‘Group All Sales’, so we need to remove the original entry in Xero.
• If the invoice fails to export you will see that as Red with failed.
• If you don’t already have one, you can sign up for a 30-day free trial with no credit card required.
• Remember each Business Unit in Zahara needs to align with a Company in Xero.

If you have more than one company available, select the correct one. Remember each Business Unit in Zahara needs to align with a Company in Xero. The Green connected sign will show if you have a successful connection. Also shown are the company name, address, and contact info along with the amount you’re owed, if any. Then, click the Draft box to open up the list of draft invoices. Before re-sending settlements, you would need to delete the original entries in Xero, so you don’t end up with duplicate A2X entries.

Run an Aged Receivables Summary Report

If you’re looking for a useful solution for how to pay bills in Xero, a batch payment lets you bundle several Xero bills together into one transaction for payment. Once you have batched your payments, you can choose to export the file and upload it into your online banking or other payment service. If you’re currently in classic invoicing, click Switch to new invoicing at the bottom of your screen. From here, follow these steps to create a new invoice in Xero. We recommend using new invoicing as it’s a simpler, faster way to invoice.

These features can be accessed by clicking on the Export arrow at the bottom right corner of the screen, as shown below. Danielle is a writer for the Finance division of Fit Small Business. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years. You will be re-directed back to the invoice page, where you will be able to click ‘Void’, as explained in Scenario 2. This will remove the transaction so that it doesn’t affect your accounts.

Part 5 – Making Purchases in Xero

Entering bills in Xero is a two-step process because bills must first be approved before you can record a payment. This is useful for situations where a bookkeeper enters the bills and submits them to the business owner or manager to approve before payment can be issued. In this section, we’ll discuss the process of both entering and approving a bill in Xero. If using purchase orders in Zahara, each invoice has it’s own audit trail, side by side with the purchase orders audit trail. This gives you every stage from request to receipt, to invoice approval and exporting.

Once you have entered the above information, click the blue Save button. To add a new contact, click the New contact button in the upper right-hand corner. There are two sections that you’ll need to complete, Contact Information and Financial Details, which are discussed in more detail below. Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content.

If a purchase is originated in Zahara with a full audit-trail behind every step, it is just the purchase invoice we hand over to Xero. We’re also going to cover how to add, view, and manage your customers. You can’t void awaiting payment or paid bills in bulk, so you’ll need to void them individually. Be sure to remove any payments, credit notes, prepayments, and overpayments before voiding it. You have now learned how to invoice in Xero and how to manage customers.

Finally, click on ‘Invoice Options’ button and then choose ‘Void’. With this in place, an invoice is created and set to use a workflow. The final step in the workflow can be to export the invoice.

How To Track and Pay Bills in Xero

This will bring up a list that shows the invoice number, customer name, invoice date and due date, expected date (if applicable), any amounts paid, and amount due. To check which one you’re on, view the link at the bottom of the screen. If it says, “Switch to new invoicing,” then you’re on the Classic invoicing screen.

Tax Exclusive – This means that number that you put in for each of the line items (look at the picture below for what a line item is), does not include tax. So if you say that line item 1 should have 10% GST applied to it, it will calculate the GST after the subtotal. Easy to use and fast to deploy cloud-based software, delivering always-on, complete visibility of expected costs and enabling better spend control. When viewing an invoice in Zahara, you will notice in the history a link to the document in Xero. The PDF of the invoice will also be sent to Xero as part of an export.

Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has https://bookkeeping-reviews.com/editing-and-deleting-invoices-and-bills-in-xero-2/ served on the Board of the National Association of Women Business Owners. She also regularly writes about travel, food, and books for various lifestyle publications. Once the report has been generated, you can export it as a PDF to print or save.

• Entering bills in Xero is a two-step process because bills must first be approved before you can record a payment.
• For the most accurate information, enter your purchase transactions and reconcile your bank accounts before running the report.
• Before re-sending settlements, you would need to delete the original entries in Xero, so you don’t end up with duplicate A2X entries.
• She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years.
• The total amount listed includes all outstanding bills, credit notes, expense claims, and overpayments.