Tag Archive for: rosemary bookeeping

Back to Basics: What is Making Tax Digital?

,

Making Tax Digital has changed the way many sole traders and landlords keep financial records and report information to HMRC.

If you have heard about MTD but are still unsure what it actually means for your business, this Back to Basics guide covers the essentials.

What is Making Tax Digital?

Making Tax Digital (MTD) is a system HMRC implemented to transition tax record-keeping and reporting into a digital format.

For individuals required to comply with Making Tax Digital for Income Tax, they must maintain digital records of their self-employment or property income and expenses.

They must use compatible software to send quarterly updates to HMRC and submit their tax return through this software by the end of the tax year.

MTD has already been established for VAT, and since April 6, 2026, it has also become mandatory for the first group of sole traders and landlords under MTD for Income Tax.

Who needs to comply with Making Tax Digital?

Making Tax Digital for Income Tax is being implemented based on qualifying income.

You must comply with MTD if you’re registered for Self Assessment, earn income from self-employment or property, and your qualifying income surpasses the threshold for that year.

The current schedule is as follows:

From 6 April 2026

You should already be using Making Tax Digital if your qualifying income was more than £50,000 in the 2024/25 tax year.

From 6 April 2027

You will need to use Making Tax Digital if your qualifying income was more than £30,000 in the 2025/26 tax year.

From 6 April 2028

You will need to use Making Tax Digital if your qualifying income was more than £20,000 in the 2026/27 tax year.

Partnerships are anticipated to be included in Making Tax Digital for Income Tax in the future, although HMRC has not yet provided a confirmed timetable.

What does Making Tax Digital mean in practice?

Making Tax Digital transforms bookkeeping from a task mostly handled around the Self Assessment deadline into a more consistent, ongoing process.

If MTD for Income Tax applies to you, you need to:

  • Keep digital records of your business or property income and expenses.
  • Use software that works with Making Tax Digital for Income Tax.
  • Send quarterly updates to HMRC.
  • Keep your bookkeeping up to date throughout the year.
  • Submit your tax return through compatible software after the tax year ends.

Your quarterly updates are summaries based on the digital records stored in your software.

This highlights the importance of regular bookkeeping.

Waiting until the deadline to compile receipts, invoices, and transactions from past months can make it much more challenging to meet your MTD obligations than it needs to be.

What does qualifying income mean?

Understanding whether Making Tax Digital applies to you depends on your qualifying income.

This income includes your total gross earnings from self-employment and property before deducting expenses and tax.

If you have multiple sources, consider them together.

For example, if you earn £38,000 from self-employment and £15,000 from rental income, your total qualifying income is £53,000.

The key factor is the combined qualifying income, not each source individually.

What are the Making Tax Digital quarterly deadlines?

For those who entered Making Tax Digital on 6 April 2026, the quarterly deadlines are:

  • 7th August 2026
  • 7th November 2026
  • 7th February 2027
  • 7th May 2027

The initial deadline of 7 August 2026 has now passed, and the next Making Tax Digital (MTD) deadline is 7 November 2026.

If you were supposed to start MTD in April but missed the first quarterly update, do not wait until November; HMRC still expects that overdue update.

After completing your quarterly updates, you will need to submit your tax return, which for the 2026/27 tax year is due by 31 January 2028. Remember, quarterly updates do not replace the annual tax return.

Why do you need to be MTD compliant?

If Making Tax Digital applies to you, following the rules is a legal obligation.

However, compliance requires more than just submitting reports four times a year.

Your bookkeeping must reliably support these submissions by accurately recording your income and expenses, keeping digital records current, and ensuring your software contains precise data.

Submitting incorrect information more often doesn’t improve accuracy. That’s why establishing the correct bookkeeping process is essential.

What happens if you miss an MTD deadline?

HMRC has added some flexibility for the first year of Making Tax Digital for Income Tax.

For the 2026/27 tax year, HMRC won’t issue penalties for late quarterly updates.

Nonetheless, submitting quarterly updates remains mandatory, and you must complete any overdue updates before filing your tax return.

Penalties can still apply for late tax submissions and payments.

After the initial year, the standard points-based penalty system for late updates comes into effect. Four points can result in a £200 fine, and additional missed deadlines at the threshold can trigger extra penalties of the same amount.

Therefore, the first year is best used to develop a consistent bookkeeping routine rather than assuming no penalty points will be issued.

What does keeping digital records actually mean?

Making Tax Digital requires keeping digital records of your relevant business income and expenses using compatible software.

These records may include:

  • Income received
  • Business expenses
  • Invoices
  • Receipts
  • Bank transactions
  • Property income and costs when applicable.

The goal is to create a digital record that your MTD software can use to generate the figures needed for your quarterly updates.

Digital record-keeping isn’t just about transferring paper records and inputting totals into HMRC every three months; your bookkeeping must be integrated into this digital process.

What software can you use for Making Tax Digital?

HMRC does not offer its own Making Tax Digital for Income Tax software.

Instead, you must choose commercial software recognised by HMRC.

You can use the online software finder to verify which products fit your needs. Recognised providers offering Making Tax Digital for Income Tax solutions include well-known names:

  • Xero
  • QuickBooks
  • Sage
  • FreeAgent

This is not a complete list.

HMRC does not favour any specific software provider.

Instead, HMRC advises using its software finder to ensure your selected software supports your income sources and needs.

This is especially important because various software options offer different features.

The ideal software isn’t always the one with the most functions, but the one that fits your business and how you and your bookkeeper handle records.

Can you still use spreadsheets for Making Tax Digital?

Potentially, yes.

Using Making Tax Digital doesn’t mean you must abandon spreadsheets.

HMRC states that users can continue to use spreadsheets, but they may need compatible bridging software to transfer data from the spreadsheet for MTD submission.

You still need to comply with digital record-keeping requirements.

Before sticking with your current spreadsheet system, it’s advisable to assess whether it will simplify or complicate your MTD process.

Do you need to sign up for Making Tax Digital?

Yes, if Making Tax Digital for Income Tax is mandatory for you, you must complete the MTD registration process.

Simply being registered for Self Assessment does not automatically set up everything for MTD.

HMRC recommends that affected taxpayers verify whether MTD applies, obtain compatible software, and sign up for Making Tax Digital for Income Tax before using the system.

Your software must also be connected to HMRC.

Is anyone exempt from Making Tax Digital?

Certain individuals can request an exemption from Making Tax Digital.

HMRC acknowledges situations where a person might be digitally excluded, such as due to age, disability, location, or other valid reasons that make digital tools impractical or unreasonable for them.

An exemption is not granted solely because someone prefers to keep paper records. If you think you might qualify, it’s advisable to review HMRC’s latest exemption guidance before concluding that MTD does not apply to you.

Why choose Rosemary Bookkeeping for Making Tax Digital?

Making Tax Digital emphasises the importance of consistent bookkeeping for compliance.

Purchasing MTD software is just one step; the accuracy and currency of the data entered are equally vital.

Your local Rosemary Bookkeeper can assist with the practical aspects of Making Tax Digital, such as maintaining digital records, tracking income and expenses, reconciling accounts, and preparing for quarterly deadlines.

We can also help you select appropriate bookkeeping software based on your needs and simplify the transition to digital record-keeping.

Rather than letting transactions pile up until the next MTD deadline, regular professional bookkeeping keeps your records organised year-round. This approach integrates each quarterly update into your routine, making it less of a stressful, last-minute task.

Making Tax Digital starts with good bookkeeping

Making Tax Digital may involve digital processes, but its core principle remains unchanged: accurate record-keeping is essential.

Software can store data and relay updates to HMRC, but the quality of your bookkeeping directly influences the accuracy of the information submitted.

If Making Tax Digital already applies to you, or you’ll be affected when thresholds are reached in 2027 or 2028, now is the perfect time to ensure your bookkeeping is prepared.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital Quarterly Update Deadlines: Every Date You Need to Know

,

Making Tax Digital (MTD) for Income Tax is changing how sole traders and landlords report their income to HMRC. Instead of waiting until the end of the tax year to complete a Self Assessment tax return, those within scope must now keep digital records and submit quarterly updates using HMRC-compatible software.

With the first submission deadline fast approaching, understanding the key dates is essential. Missing a deadline or leaving your bookkeeping until the last minute can create unnecessary stress and make the transition to MTD much harder.

Here’s everything you need to know.

Who needs to follow Making Tax Digital?

Making Tax Digital for Income Tax is being introduced in phases.

From 6 April 2026, MTD applies to:

  • Sole traders with qualifying gross income over £50,000
  • Landlords with qualifying gross property income over £50,000
  • Individuals with combined self-employment and property income above £50,000

The rollout will continue:

  • 6 April 2027 – Income over £30,000
  • 6 April 2028 – Income over £20,000

If you are approaching these thresholds, preparing now will make the transition much easier.

The four Making Tax Digital quarterly update deadlines

One of the biggest changes under MTD is moving from one annual submission to four quarterly updates throughout the tax year.

The deadlines are:

7 August

Reporting period: 6 April to 5 July

This is the first quarterly submission and the first opportunity for many businesses to report under the new system.

7 November

Reporting period: 6 July to 5 October

Your second quarterly update continues to build your digital tax record for the year.

7 February

Reporting period: 6 October to 5 January

The third quarterly update covers the busy autumn and Christmas trading period for many businesses.

7 May

Reporting period: 6 January to 5 April

This completes the fourth quarterly update and finishes your reporting for the tax year.

Although these updates provide HMRC with information throughout the year, they are not your final tax return.

Don’t forget the final declaration

As well as your quarterly updates being submitted, you must still complete your Final Declaration.

31 January

This deadline allows you to:

  • Confirm your quarterly figures
  • Declare any additional income
  • Make final adjustments
  • Calculate your overall tax liability

For most businesses, this replaces the current Self Assessment process while bringing together all sources of taxable income.

Why these deadlines matter

Unlike the old system, Making Tax Digital spreads reporting across the entire year.

This means bookkeeping can no longer be something you only think about in January.

Keeping your records updated regularly helps you:

  • Avoid last-minute pressure
  • Reduce bookkeeping errors
  • Prepare accurate quarterly updates
  • Understand your tax position throughout the year
  • Stay compliant with HMRC requirements

Many businesses will find that maintaining their bookkeeping monthly makes quarterly submissions much simpler.

Is there a penalty if you miss a deadline?

HMRC has introduced a soft landing period for the first year of Making Tax Digital for Income Tax.

During the 2026/27 tax year, no penalty points will be issued for late quarterly updates.

However, you are still expected to submit your quarterly updates on time. The soft landing gives businesses the opportunity to become familiar with the new system before the points-based penalty regime is fully enforced.

Using this first year to build good bookkeeping habits will make future submissions much easier.

How Rosemary Bookkeeping can help

Making Tax Digital introduces more reporting throughout the year, but it does not have to become another burden.

Your local Rosemary Bookkeeper can help you:

  • Understand whether MTD applies to you
  • Register for Making Tax Digital
  • Set up HMRC-compatible software
  • Keep your digital records accurate
  • Prepare each quarterly update
  • Stay on top of every important deadline

Whether your first submission is just around the corner or you’re preparing for the £30,000 threshold in 2027, getting organised now will help you stay compliant and reduce stress.

Find your nearest Rosemary Bookkeeper today.

Why Good Bookkeeping Is About More Than Tax

Good bookkeeping is about more than tax.

Ask most business owners why they keep bookkeeping records, and the answer is usually the same.

“For tax.”

While that’s certainly one reason, it’s far from the whole picture.

Good bookkeeping isn’t just about meeting HMRC requirements or preparing a tax return. It’s one of the most valuable tools you have for understanding your business, making better decisions, and planning for the future.

If you only look at your numbers when a deadline is approaching, you’re missing out on information that could help your business throughout the year.

Good Bookkeeping Helps You Understand Your Business

Every transaction tells a story.

Together, those transactions show you how your business is performing.

Accurate bookkeeping helps you answer questions such as:

  • Are sales increasing?
  • Which customers are your most profitable?
  • Are your expenses starting to creep up?
  • Can you afford your next investment?
  • Is your business actually making money?

Without up-to-date records, you’re often making decisions based on assumptions rather than on facts.

Better Decisions Start With Better Numbers

Running a business means making decisions every day.

  • Should you hire another employee?
  • Can you afford a new van?
  • Is it time to invest in marketing?
  • Should you increase your prices?

When your bookkeeping is accurate and up to date, you have reliable information to support those decisions.

Knowing your numbers gives you confidence.

Guessing rarely does.

Cash Flow Is Just As Important As Profit

One of the biggest misconceptions in business is that profit and cash are the same thing.

They’re not.

Your business can be profitable on paper yet still struggle to pay suppliers, wages or other bills if cash isn’t flowing through the business at the right time.

Good bookkeeping helps you monitor:

  • Money coming in.
  • Money going out.
  • Outstanding invoices.
  • Upcoming payments.
  • Cash available to spend.

Having this visibility enables you to spot potential issues before they become serious problems.

Stay Organised Throughout The Year

Many business owners leave their bookkeeping until there’s a deadline approaching.

The result?

  • Late nights.
  • Missing receipts.
  • Rushed decisions.
  • Unnecessary stress.

Keeping your records up to date regularly means there are no surprises when it’s time to prepare VAT returns, tax returns, or your Making Tax Digital submissions.

Everything is already organised.

Making Tax Digital Makes Good Bookkeeping Even More Important

With Making Tax Digital now underway, businesses within scope are submitting information to HMRC more frequently than ever before.

The first quarterly reporting period runs from 6 April to 5 July 2026, with the first update due by 7 August.

Quarterly reporting means bookkeeping is no longer something to think about only once a year.

It’s becoming part of your regular business routine.

Businesses with organised digital records will find MTD far easier to manage than those trying to catch up every few months.

Good Bookkeeping Saves Time

It may seem quicker to leave your bookkeeping until later.

In reality, the opposite is usually true.

When records are updated regularly:

  • Transactions are easier to remember.
  • Receipts are easier to find.
  • Errors are spotted sooner.
  • Reports take less time to prepare.
  • Deadlines become much less stressful.

Small amounts of time spent consistently often save hours of work later.

It Gives You Confidence

Perhaps the greatest benefit of good bookkeeping isn’t financial.

It’s peace of mind.

Knowing your records are accurate, your deadlines are under control, and your figures are reliable.

When you understand your business finances, you can spend less time worrying about the numbers and more time focusing on your customers, your team and your future.

How Rosemary Bookkeeping Can Help

At Rosemary Bookkeeping, we believe bookkeeping should do more than help you submit information to HMRC.

It should help you understand your business better.

Whether you’re preparing for Making Tax Digital, aiming to improve your cash flow, or simply want greater confidence in your finances, we’re here to help.

Our experienced local bookkeepers can keep your records accurate, organised and up to date, giving you the information you need to make better business decisions daily.

Because good bookkeeping isn’t just about tax.

It’s about running a better business.

Find your nearest bookkeeper here, or call us on 0345 8620072

The Real Cost of Bad Bookkeeping

,

Many business owners think bookkeeping only matters when a tax return or deadline is approaching.

The reality is that poor bookkeeping can affect your business every day.

Bad bookkeeping is not always obvious. Often, the cost shows up as missed opportunities, poor decisions, unnecessary stress, and avoidable penalties.

Missing expenses can increase your tax bill

One of the most common bookkeeping issues is failing to record all business expenses.

Missing receipts or unrecorded purchases can mean:

  • Higher taxable profits
  • Higher tax bills
  • Lost allowable expenses

Over time, these small omissions can add up to significant amounts.

Bad bookkeeping affects cash flow

Cash flow is one of the biggest challenges for many businesses.

Without accurate records, it becomes difficult to determine:

  • What money is coming in
  • What bills are due
  • Which customers owe you money
  • How much tax do you need to set aside

This can lead to unnecessary financial pressure.

Decision-making becomes harder

Good business decisions rely on good information.

If your figures are inaccurate or out of date, it becomes difficult to answer key questions such as:

  • Am I making a profit?
  • Can I afford to hire staff?
  • Should I invest in equipment?
  • Is revenue growing?

Without accurate bookkeeping, decisions often become guesswork.

HMRC penalties can be expensive

Late submissions, inaccurate records, and missed deadlines can result in:

  • Penalty charges
  • Interest charges
  • Additional HMRC checks

As Making Tax Digital introduces more frequent reporting, maintaining accurate records becomes increasingly important.

Catching up costs time

Many businesses leave bookkeeping until deadlines approach.

Catch-up bookkeeping often takes significantly longer than regular record-keeping.

This means spending valuable time sorting through historical transactions instead of focusing on customers and growth.

Good bookkeeping creates opportunities

Accurate bookkeeping provides:

  • Better financial visibility
  • Stronger cash flow management
  • Easier tax planning
  • Faster decision-making
  • Greater confidence

In short, bookkeeping is not just about compliance. It helps businesses operate more effectively.

How Rosemary Bookkeeping can help

Your local Rosemary Bookkeeper can help keep your records accurate, organised, and up to date throughout the year.

That means fewer surprises, less stress, and more time to focus on running your business.

Find your nearest Rosemary Bookkeeper today.

Babu Takes Over Rosemary Bookkeeping Shrewsbury as Local Practice Builds on Five Years of Success

,
Read more

Why Outsourcing Your Bookkeeping Is Important for Making Tax Digital

, ,

Find out why outsourcing your bookkeeping is important for Making Tax Digital.

Making Tax Digital (MTD) is transforming how businesses manage their records and report information to HMRC. Although the full implementation occurs in stages, the direction is clear. Digital record keeping, regular updates, and accurate data are becoming the norm, not the exception.

For many business owners, this shift prompts an important question. How do you remain compliant without bookkeeping consuming your time? This is where outsourcing becomes increasingly beneficial.

Making Tax Digital requires consistency, not catch-up

One of the most significant changes under MTD is shifting away from annual catch-ups. Instead of reviewing records only once a year, businesses are now expected to keep their information accurate and up to date throughout the year.

This can be challenging when bookkeeping is fitted in around other responsibilities. Missed receipts, delayed updates, and rushed reviews make compliance more difficult.

Outsourcing your bookkeeping helps ensure consistency. Records are updated regularly, transactions are checked thoroughly, and issues are identified early rather than at the point of submission.

Accuracy matters more under MTD

MTD depends on digital data flowing directly to HMRC. Errors become more apparent and are more difficult to correct later. Small mistakes, such as wrong categories or missing transactions, can recur across multiple submissions.

A professional bookkeeper knows how records should be organised and checked. This minimises the chance of repeated mistakes and helps ensure that submissions accurately show the true state of your business.

Outsourcing also provides peace of mind. You know your records are being checked by someone familiar with the rules and expectations.

MTD adds pressure to already busy schedules

Many business owners already feel stretched thin. Adding quarterly updates, digital record requirements, and future changes heightens that pressure.

Outsourcing removes the need to keep up with every technical detail. Your bookkeeper remains aware of MTD requirements and ensures your records meet them. This enables you to focus on running your business instead of managing compliance.

Outsourcing supports better planning, not just compliance

MTD is not just about reporting; it encourages businesses to review their figures more frequently. When bookkeeping is managed properly, you gain a clearer understanding of income, expenses, and cash flow.

Outsourced bookkeeping helps by keeping records organised and accessible. This makes it easier to plan ahead, prepare for tax payments, and adjust decisions based on accurate figures rather than estimates.

Preparation for future MTD phases starts now

MTD for Income Tax will begin to apply to more sole traders and landlords from April 2026, with thresholds decreasing gradually. Even if MTD does not apply to you yet, preparing early helps make the transition easier.

MTD for Income Tax will apply to:

  • Sole traders with income over £50,000 (from April 2026).
  • Sole traders with income over £30,000 (from April 2027).
  • Sole traders with income over £20,000 (from April 2028).
  • Landlords with property income over the same thresholds.

Outsourcing now helps develop good habits before they become necessary. Digital records are already established, routines are in place, and future changes seem less disruptive.

How Rosemary Bookkeeping can help

At Rosemary Bookkeeping, we assist businesses at every stage of Making Tax Digital. Our local bookkeepers offer reliable, professional support that ensures records remain accurate and compliant.

We help you:

  • Maintain clean, digital records
  • Stay organised throughout the year
  • Prepare for quarterly MTD reporting
  • Reduce stress around deadlines and compliance

Outsourcing your bookkeeping isn’t about losing control. It’s about gaining clarity, confidence, and time.

If you need assistance with preparing for Making Tax Digital, your local Rosemary Bookkeeper is ready to help.

Find your nearest Rosemary Bookkeeper today.

Autumn Budget 2024: What It Means for UK Businesses and Your Bookkeeping

,

The Autumn Budget 2024 is here, bringing updates that could significantly affect businesses across the UK. Whether you’re a sole trader, small business owner, or part of a larger organisation, understanding these changes is key to staying compliant and making informed financial decisions.

In this blog, we’ll break down the main points from the budget, explain how they impact your business, and highlight how good bookkeeping can help you stay on top of it all.

1. Corporation Tax Adjustments

One of the big headlines this year is a change to corporation tax bands. While the main rate remains at 25% for businesses earning over £250,000, relief measures for small businesses earning under £50,000 have been clarified, with tapered rates for those in between.

The Bookkeeping Angle:

Accurate profit tracking is more important than ever. If you’re in the tapered band, precise bookkeeping can help you calculate your taxable profits correctly and avoid paying more tax than necessary.

2. Changes to Business Rates

The Autumn Budget also introduces updates to business rates, with some relief schemes being extended for small retail, hospitality, and leisure businesses. This could mean reduced rates for qualifying businesses, depending on their property value.

The Bookkeeping Angle:

Bookkeeping helps you identify and record eligible properties and relief amounts. By maintaining proper records, you can ensure you’re applying for and benefiting from all available reductions.

3. Support for Small and Medium-Sized Enterprises (SMEs)

The Chancellor announced increased support for SMEs, including grants for energy efficiency upgrades and digital transformation. If you’ve been thinking about improving your business operations, now might be the time to act.

The Bookkeeping Angle:

Properly recording grant applications and their usage is vital. Bookkeeping ensures you’re tracking these funds correctly to comply with grant terms and demonstrate how they’ve been used.

4. National Minimum Wage Increase

Another key update is the rise in the National Minimum Wage. From April 2025, businesses will need to adjust their payroll systems to accommodate the new rates.

The Bookkeeping Angle:

Payroll is a critical component of bookkeeping. Updating your payroll records to reflect these changes will ensure you remain compliant and pay employees correctly.

5. Investment Incentives Extended

The budget has extended certain investment incentives, such as the Annual Investment Allowance (AIA), allowing businesses to deduct the full cost of qualifying assets in the year of purchase.

The Bookkeeping Angle:

Recording these qualifying purchases accurately in your books will help you maximise your tax savings. A well-maintained asset register is key to taking full advantage of this allowance.

6. VAT Threshold Maintained

The VAT registration threshold remains at £85,000, giving businesses clarity for the upcoming tax year. However, HMRC is increasing its focus on VAT compliance and reporting accuracy.

The Bookkeeping Angle:

If you’re nearing the VAT threshold, keeping precise income records is crucial. Good bookkeeping ensures you register for VAT on time and report accurately to HMRC.

Why Bookkeeping Is Your Best Friend This Budget Season

The Autumn Budget brings opportunities and challenges for businesses. Regardless of whether it’s tax bands, relief schemes, or grants, one thing remains clear—accurate bookkeeping is the backbone of staying compliant and making informed decisions.

Here’s why:

  • Stay Compliant: With HMRC increasing its focus on compliance, accurate records can help you avoid penalties.
  • Maximise Savings: Good bookkeeping ensures you claim all available reliefs, deductions, and incentives.
  • Plan Ahead: Understanding your financial position allows you to adapt to budget changes and plan for the future.

How Rosemary Bookkeeping Can Help

Navigating the financial landscape post-budget can feel overwhelming, but you don’t have to do it alone. At Rosemary Bookkeeping, we specialise in helping businesses like yours stay organised, compliant, and stress-free. Whether it’s maintaining accurate records, managing VAT, or preparing for tax season, we’ve got you covered.

Call 0345 862 0072 to see how we can help you today or find your nearest Rosemary Bookkeeper here.

How to create and send an invoice in Xero – Teri Tips

, ,

Teri Cotta shows you how to create an invoice in Xero in just two steps.

At Rosemary Bookkeeping, we work closely with our friends and partners at Xero to help our clients get to grips with their bookkeeping.

But creating new invoices can be a big hurdle when you don’t know how – especially on potentially alien software.

That’s why our accounting crackpot, Teri Cotta, has been working hard to bring you the top tips to be a Xero whiz and understand its processes, from the terribly simple to the terrifically complex.

Specifically, in today’s Teri Tips, we’re walking you through “How to create a new invoice”.

And if you’re a visual learner, don’t worry… a full video showing each of these points step by step can be found on our YouTube channel.

Benefits of invoicing with Xero

Put simply, invoicing in Xero helps you get paid faster.

You know when customers have seen your invoices, and it’s easy to chase overdue invoices.

And you can create and send invoices in Xero in two simple steps.

  1. Create Your New Invoice

In the business menu, select invoices.

Then click ‘New Invoice.’

Or from anywhere in Xero, click the plus icon and select invoice.

Enter the business name.

Either create a new contact or choose from one of the lists.

Xero automatically assigns the invoice number and dates.

Check the default due date is correct and change it if you like.

Enter details in the description, quantity, and price fields.

Be specific so the customer knows what they’re paying for.

Ensure the account and tax rates are correct so Xero can categorise the transaction accurately.

Or, if you’ve set up products and services in Xero, you can choose them in the item menu, and Xero will populate the fields for you.

  1. Send the Invoice to Your Customer

First, preview your invoice to see how it looks for your customer.

Click ‘X’ to close the preview and make any changes if you need to.

Once you’re happy with the invoice, click approve and email.

Confirm the customer’s name and email address and click ‘Send’.

Xero sends the invoice and marks it as awaiting payment. And that’s it.

You’ve created an invoice and sent it to the customer.

Now, you’re ready to tackle the world!

Need extra expert support?

Teri Cotta is joined worldwide by Rosemary Bookkeeping’s network of Xero-certified bookkeepers.

So, whether you need help choosing the right software for you, using Xero, or outsourcing your books, our experts can help.

Take the hassle out of your bookkeeping and get the time back to focus on what matters most by contacting your nearest Rosemary Bookkeeper today.