8 Xero tips to help you maximise your business performance

Since Xero introduced its cloud accounting system there’s been a huge move towards online accounting in general. But Xero is still the frontrunner, with a 54% market share in 2016—well ahead of its nearest rivals QuickBooks and MYOB.


Chances are your business is using Xero as well. But are you taking full advantage of its capabilities? Here are eight tips for getting the most out of Xero. 

1. Use rules to reconcile your bank statements

The quickest and easiest way to reconcile bank statements in Xero is to set up Bank Rules—especially if you deal with cash transactions. 

By setting up specific conditions, you can have Xero code your bank statement transactions automatically. And if you’re dealing with dozens or even hundreds of transactions a day, this could save you hours of work.

To access Bank Rules, choose Bank Accounts from the Accounts menu and then click on the Bank Rules button.

2. Customise your dashboard

When you first start using Xero, your Dashboard displays information such as your bank account, how much money you owe, and how much money is owed to you.

But you can set up your Dashboard to show whatever information you need to know as part of running your business. For example, you could add:

  • The Account Watchlist, which lets you quickly check the key accounts in your business as well as month and year to date comparatives
  • KPIs relevant to your business performance (e.g. Gross Profit Margins, Current Ratio or Debt to Equity ratio) so you can see how your business is performing at a glance

3. Take advantage of Xero add-ons

Xero can make running your business even easier through various add-ons. And with more than 500 add-on partners to choose from, you’re bound to find one that’s perfect for your business.

These add-ons, which all work seamlessly with Xero, can help with issues such as:

  • inventory management
  • cash payments
  • customer relationship management (CRM)
  • job tracking
  • Point Of Sale (POS) transactions  

4Connect with other business through a Xero network

Do any businesses you regularly deal with also use Xero? If they do, why not create your own secure Xero network? You’ll be able to send invoices directly to their Xero account, and even share Xero files seamlessly.  

5. Create a budget

Every business needs a budget, and Xero includes an easy-to-use Budget Manager. It even lets you import and export to and from spreadsheets, allowing you to manipulate the data even more.

But don’t forget to ‘favourite’ your Budget Variance Report so you can see how your business is performing and adjust your budgets accordingly. 

6. Let Xero look after repeat invoices and bills

Do you find yourself sending the same invoices or paying the same bills over and over again? Then you’ll love Xero’s Repeating Invoice and Repeating Bill options.

Instead of having to create a new invoice each time, you can set up a template to have Xero automatically create, save and even email them to your customers. You can also set one up to automatically deal with the bills that come in at regular intervals.

You can even choose whether they should appear on the Draft or Awaiting Payment tab, where you can quickly approve them (if they're Draft) or pay and reconcile them (if they're Awaiting Payment).  

7. Have Xero track important information

Does your business have important categories you need to track? Add them to Xero’s Tracking function, and then allocate them to the appropriate asset, liability, equity, expense or revenue transactions.

Once that’s done you can start monitoring their performance by specifying the tracking criteria across Xero’s numerous reports. You can even track transactions across Balance Sheets and Profit and Loss statements.

8. Team up with a Xero expert

While all of these tips will certainly help you run your business better, the best way to ensure you’re taking full advantage of Xero’s capabilities is to team up with a Xero Gold Partner such as Vision Financial Group. Being a Gold Partner means we’ve completed the Partner Certification Program. We live and breathe Xero.  

Ready to crank Xero up to full power in your business? Then get in touch with the team here at Vision Financial Group, and let us help you use it to maximise your business’ potential.