Welcome to Accounting in The Cloud with Xero. If you are considering using Xero or you are already using Xero for your cloud accounting solution then you’re in the right place. We’re going to show you how to use Xero to capture, record, and report on your transactions in the cloud with zero or near zero data entry required.
This isn’t magic, it’s today’s technology at it’s best and it’s how we do business in this day and age applied to your accounting software. I stopped writing checks a long time ago. Even now when someone insists on getting a check I don’t write it. I can use an app like Bill.com to initiate the transaction and link bill.com to my Xero account. Other than the initial information needed to know whom to pay and how much, no further data entry is required. Xero will get the data, then I’ll just confirm it and make sure it’s posted to the right account. That last part, posting to the right account will only be necessary if someone else initiated the transaction and I am the bookkeeper, making sure.
When you swipe a debit card, there is zero data entry. The retailer’s POS system reads your card info, charges you, and collects the money from your account. Xero will capture your bank feed and show you what charges came in overnight. The rules you create will cut down further and further on the time it takes for those transactions to be coded to the right accounts in your chart of accounts. As the transactions are posted, the reports will come together. Assets, liabilities, Equity, Revenue, and Expenses as well as resulting net profits and cash flow information can be reported. Based on this and as long as you keep up with the daily reconciliations you can have constant real time reporting on the financial position of your company as well as the results of operations anytime and anywhere you need it.