Tag Archive for: xero

How to use bank rules in Xero – Teri’s Tips

How to use Xero’s bank rules to save time reconciling bank statements.

Bank rules are an excellent way to save time during the bank reconciliation process.

This is the often-tedious task of categorising the money coming in and going out of your bank account.

They’re perfect for recurring bank transactions, things like taking clients out for coffee, filling up your work vehicle, and regular transfers between bank accounts.

Once set up, you can reconcile these transactions with just one click.

Bank rules help every type of Xero user save time and they reduce the chance of human error.

In this article, Teri Cotta, our resident Xero brainbox walks you through the A-Z of using bank rules in Xero.

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.

How to create a bank rule on Xero

To view bank rules, go to Accounting, then Bank Accounts and click ‘Bank Rules’ to create a new bank rule.

Click ‘Create Rule’.

Here, the rules are divided into five parts…

Part 1- Apply a bank rule

The first part allows you to enter logic, which decides whether Xero picks up a bank transaction with this rule.

You have many options here to create a rule that’s targeted or a little broader.

Part 2 – Set the Contact

The second part allows you to enter what you want Xero to do with the transaction like what contact or account to allocate the money to.

To start, decide whether your rule is for money going in, out or between accounts.

These can be selected from the panel at the top of the page.

Let’s say that this rule is for parking expenses, this is where we enter conditions and how to pick up these parking transactions.

If they usually have the word parking in the description, payee or reference, we can enter this here using any text field.

Use the “contains” condition if parking is usually part of a larger piece of text.

“Equals” makes this rule much stricter and only applies the rule if it’s just the word parking in one of the fields with nothing else.

If you want to add more conditions to the rule to ensure you capture the transactions you need, you can add them here.

If you select ‘all’, each of these conditions must be present in a transaction for it to be picked up, which means it’s targeted.

If you have a lot of conditions, we want any parking transaction picked up if any of these conditions are met. So, we’ll select ‘any’.

Choose an existing contact to apply the parking expense to the contact when you reconcile or use the bank payee as the contact.

Part 3 – Allocate Items

Decide what account you’d like the parking transaction to go to.

If you need to spread the total across multiple accounts, you can either do fixed amounts here add 100% to one account or split the total by percentages.

Part 4 – Set the reference

Choose what reference you’d like to set.

Either choose information which comes with the transaction, or you can enter a reference each time.

Part 5 – Add rule details

Finally, decide if you want to include all your bank accounts in Xero or just one, and name the rule and click save.

You can go back and edit anything about the rule at any time.

Creating a rule from a transaction

Next time a transaction comes through the bank account that fits the rules and conditions, you can click ‘okay’, and it’s reconciled in one click.

To create a bank rule even faster, click ‘Create Bank Rule’ right from a transaction when you’re reconciling the bank.

Xero fills in the information it has for that transaction to give you a head start when creating the rule.

Need help with your bookkeeping?

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.

Boost Your Financial Awareness: Digitalise Your Bookkeeping for Making Tax Digital

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Prepare for Making Tax Digital Changes by digitalising your processes with the help of an expert bookkeeper.

If you’re a small business owner, sole trader or landlord, you’ve probably heard plenty of rumblings about the imminent and non-negotiable changes surrounding Making Tax Digital.

While, on the face of it, it does seem scary when words like “compliance” and “tax” are being wielded by HMRC, it doesn’t have to be.

In this blog post, our experts break down Making Tax Digital and what you need to do in order to be prepared for compliance when the time comes.

What is Making Tax Digital?

Despite the name, Making Tax Digital (or MTD) is not about tax. It’s about bookkeeping.

The government-led initiative centres on moving UK taxpayers’ records from spreadsheets and paper to a fully digitalised system. Introduced in April 2019, it has already gone through a few phases and currently applies to VAT-registered businesses. This is all set to change, however.

As of April 2026, MTD will be applied to Income Tax records for self-employed individuals and landlords with an income of over £50,000, which will require three key changes:

  1. Digital Record-Keeping: All transactions (income and outcome) must be kept digitally in an HMRC-approved software.
  2. Quarterly updates: Single annual returns are a thing of the past. Now, you must send quarterly updates on income and expenditure using an MTD-compliant software.
  3. Final Declaration: Once you’ve submitted all four quarterly updates in one year, you need to finalise your annualised income with a final declaration.

For those affected, MTD isn’t a tax change, but the mandating of digitalised bookkeeping using compliant software.

How a bookkeeper can help with MTD

No matter your threshold or when you’re affected, if you’re worried about the incoming changes to MTD for Income Tax, a bookkeeper can help.

The best way to keep your MTD experience stress-free is to get ahead of the changes by working with an expert bookkeeper to help make the transition to bookkeeping software.

Choosing the right software for you can be a lot to consider, but with Rosemary Bookkeeping, it doesn’t have to be hard. As accredited experts and approved partners with many leading MTD-compliant software like Xero, QuickBooks, Sage, FreeAgent and more, a Rosemary Bookkeeper can help you understand which software will be the best fit for you, get set up and transition to digital in time for the changes.

Or, to completely remove the stress from the equation, you can opt to outsource your bookkeeping to our experts completely, safe in the knowledge that we’ll ensure you stay compliant with MTD and other compliance requirements like AML, as well as keeping your books neat, correct and accounted for.

Want help with your bookkeeping?

If you’d benefit from expert advice, outsourcing and support in time to comply with the upcoming changes for MTD, contact your nearest Rosemary Bookkeeper today for a free, no-obligation quotation on a range of professional bookkeeping services.

Six ways a bookkeeper can help an online retailer

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The value of a bookkeeper to online retailers and sellers.

It’s fair to say that nowadays many people are well-versed in buying products and services online. With a massive shift in consumer behaviour over the last few years, the UK now boasts the third-largest e-commerce market globally, with a substantial portion of retail sales online. In fact, by 2023, nearly 60 million people in the UK were e-commerce users, and this number is projected to continue to grow.

For online sellers or businesses that sell products or services through the internet using digital platforms, websites, or apps, from small independent entrepreneurs on Etsy or eBay to large companies operating full-scale e-commerce websites like Amazon or Shopify stores, there can be great value in employing the help of a dedicated bookkeeper.

In this blog post, we examine the services offered by bookkeeping professionals that benefit sellers in digital spaces and six ways a bookkeeper can help an online retailer.

  1. Daily Financial Tracking

For any business, having a good oversight of your daily incomings and outgoings is of great benefit. Particularly for online sellers, where transactions aren’t completed physically with cold, hard cash, keeping track of your expenses is vital.

With a bookkeeper, you maintain daily visibility of your expenditure, helping you to prioritise your spending, track your results, and assess changes you need to make to achieve your goals and create the financial future you want.

Beyond the day-to-day, it also enables you to be forward-thinking and prepare for the future by facilitating the construction of an emergency fund, giving you a cushion to fall back on during unexpected twists and turns in your business journey.

  1. Sales Tax Compliance

For online sellers, compliance is essential. However, it can also be complex. With the help of a bookkeeper, online retailers can maintain consistent compliance with changing legislation and requirements for sales tax, like VAT and other charges that may be incurred on their online orders.

  1. Managing Cash Flow

Staying out of the red is a universal goal for all businesses, as naturally, everyone wants to avoid cash flow problems. However, due to their size and access (or often lack thereof) to financial resources, SMEs are typically disproportionately affected by negative cash flow.

While bigger businesses may have funds allowing for a stopgap between late payments, smaller businesses, like many independent online sellers, are more reliant on their projected monthly income. The help of a bookkeeper can also support you in securing finance, attracting investors, negotiating with suppliers and winning new business by achieving a good business credit rating through maintaining good cash flow.

  1. Tax-ready Financials

A huge event for all businesses in the UK is the regular dates in the financial calendar by which you must have your business’s financials ready for tax return, particularly the infamous January Self-Assessment tax returns.

As bookkeepers, experts like those across the nation at Rosemary Bookkeeping can help online sellers prepare and get ahead of these busy and mentally taxing dates by preparing a Balance Sheet and Profit and Loss report, so your financials are tax return ready and then prepare said tax return from those financial reports, so you don’t have to worry about the complex and mentally draining process yourself.

Beyond this, they can organise your financial information and bits and pieces like receipts, tax documents, gather all your business expenses and ensure they are all in one place, review your invoices and send reminders to your clients and clients to further improve your cash flow.

This can also include…

  1. Reconciliation

Online retailers can utilise bookkeeping experts to ensure their finances are all joined up. With the support of a bookkeeper, online retailers can easily navigate the final process of reconciling their bank statements and compare statements to ensure all their transactions are accurate and accounted for.

  1. Software set up

Particularly as legislation like Making Tax Digital come into force across the UK, becoming literate in online accounting software is essential for business owners like online sellers.

Bookkeeping professionals like Rosemary Bookkeeping are experts in many different software across the financial world, from Xero and Intuit QuickBooks to Sage, FreeAgent and more. So, if getting set up on software in time for MTD deadlines and to streamline your accounting processes for your online business seems like a struggle, your local bookkeeper should be your next call.

Need help with your bookkeeping?

With many benefits to using a bookkeeper to support your online business, take the stress out of your business operations by leaving your bookkeeping to the professionals.

To learn more about our services and how Rosemary Bookkeeping can help you, call 0345 862 0072 or find your nearest Rosemary Bookkeeper today.

What sets Xama’s AML Software Apart?

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Marcus Batson from Xama Technologies shares what makes them the go-to solution for AML compliance.

Xama is a comprehensive anti-money laundering (AML) software used by over 1,000 accountants and bookkeepers of all sizes across the UK to stay compliant.

For accountants and bookkeepers, AML compliance is vital in preventing crimes that could harm their business and protect them from legal, financial, and reputational damage, allowing them to maintain the integrity of their systems and the trust of their clients.

As the go-to solution for AML compliance, Xama’s cloud-based solution offers multiple services and systems that set it apart and make it the provider trusted by Rosemary Bookkeeping business owners across the UK.

In this blog post, we sat down with Marcus Batson from Xama Technologies to see what makes Xama work so well and explore some of its key features and benefits for UK-based accountancy or bookkeeping practices that need to manage AML at scale.

What sets Xama apart?

While most AML tools require you to juggle spreadsheets, separate check-processing systems and disconnected document stores, Xama replaces this patchwork with a single, intuitive dashboard that unifies training, client screening, document management and reporting.

With out-of-the-box integrations into Practice Management, Proposal tools and leading accounting platforms (e.g. Xero), firms can gain real-time visibility into every compliance task and status — all in one place.

Not only does Xama show you exactly what’s outstanding, but it also proactively delivers all the quarter-on-quarter regulatory changes — from high-risk country lists to updated FATF guidance — straight into your inbox and Academy dashboard.

It’s built-in AML Academy then issues role-specific e-learning modules, tracks completions, and automatically issues certificates, so you never have to search for the latest rules.

Integration

Particularly if you’re an accountant, you’re likely already using existing bookkeeping or CRM systems in your role. So, how does Xama integrate with those?

“Every firm has different clients, software and processes, so it’s important to balance compliance with practicality. Our Risk Assessments can be created from scratch or can be customised to adapt to any firm. Our AML Academy training is tailored to services, client types and team roles, and client-facing elements of the platform can be branded in the firm’s logo to ensure consistency for the client,” says Marcus.

Via the Hub Apps page in the platform, you can view simple instructions for each integration for various existing software.

Most of them consist of an ‘API Key’ that allows the two tools to connect, and Xama has a short video for each integration within their Training Hub. Speaking of…

Training and onboarding for new users

If you want to sign up for Xama, you can… very easily. Signing up takes minutes and then directs you to a guided Compliance Checklist, which walks you through importing client records, migrating historic data, customising risk-assessment templates and updating policies. Beyond that, you also get:

  • On-demand video tutorials for every feature
  • Quarterly refresher courses via the AML Academy
  • A dedicated support portal (tickets and live calls) for anything more complex

Xama provide the flexibility to start at whichever point works best for you. Whether this is the process moving forward first (the migration of historic records can be done later) or the other way around, this ensures firms can see the value straight away, without needing to undertake a large migration project before reaping the benefits.

Success Stories

Marcus says that the biggest successes he has witnessed are when Xama has supported and or enabled a successful audit from a supervisory body. Multiple clients have passed FCA and HMRC audits with zero fines, thanks to Xama’s audit-ready documentation and real-time alerts.

“We’re lucky to have had many firms pass with very minor, if any, actions to be taken after.”

“We had one particular firm that was struggling with AML for a long time due to the size of their practice,” he adds.

“They had massive gaps in their compliance documentation and were very worried about getting fined. Over two weeks, using the structure and reporting provided in Xama – but the flexibility to do it their way – they were able to resolve this and (whilst they weren’t in a perfect position) left the audit without a fine, and just minor tasks to take forward afterwards.”

Ongoing Support and Adaptation

In the world of bookkeeping and accountancy, we know nothing stays the same for long, and there are constant changes and new implementations that need to be made for firms to remain compliant with legislation such as AML.

Xama have accounted for this. Their founding team have been working in the industry for a long time, with their Founder being a Technical Partner of an Accountancy firm, their Commercial Director – another partner at the same firm, and their Engineering team having supported their founder as one of the first development teams to build on Xero’s API.

At Xama, the team understands the complexity of AML as well as practical applications within Accounting and Bookkeeping practices. Marcus himself has worked with Accounting and Bookkeeping firms for over six years, supporting and delivering new services and tackling common process challenges.

Their compliance team monitors FCA, HMRC and international AML updates 24/7. Every quarter, the AML Academy automatically publishes new modules covering regulatory changes, and they release platform updates within days of any major rule change. That way, you’re always ahead of the curve without lifting a finger.

Xama aim to bring enterprise-level software to firms of all sizes, which means they need to ensure that they work with the best-in-class providers to accomplish this.

“AI is lowering the bar to entry for fraud, and we’re confident that with our providers who have tampering detection, monitoring services and more, we can proactively identify areas of concern before it becomes an issue,” Marcus says.

Changes and Upcoming Evolution

With these changes, Marcus expects the standards will continue to increase on how identity is verified, causing a greater focus on Identity Verification Tools (IDVT) and stringent processes to reduce fraud and money laundering activities.

“This is very difficult to keep on top of, at scale, as well as ensuring you’re delivering client work, without leveraging tools like Xama,” says Marcus.

“Accountants are feeling this first with the new Companies House ID requirements, but I feel this will continue to evolve the way the AML standards are set.”

Moreover, as the financial and technological landscape changes, Xama is itself balancing new automations with the need for human oversight.

Whilst the platform does a lot of the heavy lifting, Xama also provide reports to see each check that was done and a clear understanding of the results. When the system doesn’t have a high confidence, it will ‘refer’ the client to you for a manual review, alongside the supporting report to give you direction.

To enhance the ways Xama helps ensure compliance, they are working on several evolutions to combat the ongoing challenges of AML.

 “We have a long list of tools and enhancements,” says Marcus.

“With the suite of tools available to firms ever-growing, the challenge of visibility and bringing all of the elements of AML together becomes more and more challenging. Integrations will always be a key driver of our evolution. But we also want to make sure we continue to improve the way the platform looks and feels, as well as make sure we use best-in-class technology.”

Stay compliant with expert bookkeeping and software solutions

Rosemary Bookkeepers nationwide use Xama for expert AML solutions, alongside our specialist services and cloud-based tools like Xero, QuickBooks, Sage, and FreeAgent to help you stay compliant and support your business’s unique needs and specifications.

Whether you’re just starting or looking to hire a bookkeeper to support your growth, we’d love to help you on your journey to becoming the best business you can be. To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation today.

Choosing the right accounting software for your business

How to choose the best accounting software for your business.

For any small business owner, keeping track of your incomings & outgoings is one of your most vital tasks.

Due to recent government initiatives around MTD (or Making Tax Digital), having a digital record of your finances is essential. Thankfully, there is a wide range of online software options available. All of which claim to offer you the best possible service.

Some advertise more often and are more well-known, like QuickBooks and Xero. At Rosemary Bookkeeping, we know businesses are as varied and unique as the people who run them.

What works for one person’s business doesn’t work the same for another. To make the best move for your business, you need to look at what each service offers and figure out what works for you. That’s why we’ve compiled a list of factors you should consider when selecting your accounting software.

What are the costs?

One of the main things to think about is, of course, price. And the price for accounting software can vary considerably. There are packages at the lower end of the price range, but these will often be a more basic package. Think about your business requirements now and in the future. Will a basic package be enough, or will you need more features further down the line?

Usability

The size and structure of your business will affect how many users there will be accessing your accounting software. Do more users mean more cost? Is it scalable if needed later? Do you want your accounting software to be installed on a particular desktop, for example?

Something like this considerably affects your pool of available choices, as most systems are now cloud-based. Especially with the new MTD regulations, we recommend a cloud-based system that you can access anywhere, without limiting your number of users.

However, if your preference is a desktop, there are still some good options such as the free, open-source, desktop software GnuCash.

Features

Work out what you need from the accounting software and what you need it to do. Do you need both accounts receivable and accounts payable tools? Which reports do you need it to generate? Do you need it to track inventory? Do you need it to include ancillary services, like time tracking, project management, and payroll?

Which to choose?

Of course, as bookkeepers ourselves, we have our preferences when it comes to software.

We work with all sorts of platforms and packages but there are a few we see time and time again.

These are:

Xero

Widely acknowledged as one of the top pieces of accounting and bookkeeping software – especially if you’re working on a Mac.

Xero is great if you’re just starting, or if you need your accounting to be straightforward. Another plus of Xero is that it is designed to grow as your business does.

We like that it’s affordable, easy to use, offers a ton of add-on features and integrates with hundreds of third-party business solutions, many of which you likely already use.

There is also a 24-hour email and live chat support function, meaning there’s always someone there to help you whenever you need it.

FreeAgent

Unlike many bookkeeping and accounting software products that limit your transactions, unless you purchase a more expensive package, FreeAgent supports unlimited users, clients, invoices and transactions for one monthly price.

Like many of its competitors, it is cloud-based software, but it also comes with a built-in project management feature.

These make it ideal for keeping track of billable hours and expenses. As a FreeAgent partner, we recommend it for freelancers, consultants and other project-based businesses.

QuickBooks

QuickBooks is another of the most popular accounting software packages out there (and for good reason).

QuickBooks works for all types of small businesses, with three different small business plans to choose from, plus a separate plan for the self-employed, freelancers and contractors: it’s got something for everyone.

Both new start-up businesses and bigger, established businesses have benefitted from its range of features, which cover basic bookkeeping to advanced accounting and business analytics.

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting has two plans for small business owners, starting with invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management.

It’s most popular with retail-based businesses due to its ability to integrate with POS systems.

Sage also appeals to businesses with large finance departments thanks to its support for multiple users and payroll systems.

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses. This might make one a great fit for how you run your business or, by the same token, a terrible fit.

At Rosemary Bookkeeping, we work with you. We know that every business is different, and our bespoke service reflects this. By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you. From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting, or looking to hire a bookkeeper to support your growth, we’d love to help you on your journey to becoming the best business you can be. To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation today.

Rosemary Bookkeeping Wembley Wins Rookie of the Year Award

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Hanaa Raydan from Rosemary Bookkeeping Wembley picked up the coveted Rookie of the Year award for her exceptional first year in business at this year’s Rosemary Bookkeeping Spring Forum.

Rosemary Bookkeeping’s annual spring forum is a red-letter day for our bookkeepers up and down the UK, where we come together to network, learn, grow, and catch up, too!

The day also saw some business owners awarded for their successes in 2024.

This included Hanaa Raydan from Rosemary Bookkeeping Wembley, who won an award for significant business growth in the last year.

In her first year in business, Hanaa made key strides through achieving key qualifications that allowed her to provide exceedingly excellent services to her clients through a range of vital services, including help using software like Xero and QuickBooks to work towards targets around Making Tax Digital and meeting crucial deadlines in the bookkeeping calendar.

Raising awareness of her business and brand in the local area through focused marketing efforts, alongside making space for her family and personal commitments, Hanaa has seen great success.

“[For the] first year, I prioritised the franchise and tried to dedicate my time and concentration on the business to be seen,” she says.

This has paid dividends to Hanaa’s visibility within her community as she has found that Rosemary has become a growing name in her area.

“I found that my biggest success is that most of my clients were calling me Rosemary, which made me feel I did succeed in making the franchise seen and remembered.”

Hanaa says her other successes and greatest pride have been in helping clients and supporting them in managing deadlines, all while connecting with her community and owning a business that allows her to be flexible in work.

Bobby Garland, Brand Leader for Rosemary Bookkeeping, adds:

“Hanaa has hit the ground running in her first year, showing remarkable dedication to hunting out potential clients and getting them over the line to achieve some great progress towards her growth!”

Need an award-winning bookkeeper?

If you’re in Wembley and the surrounding areas and could benefit from professional bookkeeping services from a local expert, contact Hanaa on 0208 5750286 or find your nearest Rosemary Bookkeeping business to see how we can help you today.

Rosemary Bookkeeping North Kent and Isle of Sheppey Awarded for Business Growth

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Grant Dye from Rosemary Bookkeeping North Kent and Isle of Sheppey picked up a prestigious growth award at this year’s Rosemary Bookkeeping Spring Forum.

Rosemary Bookkeeping’s annual spring forum is a red-letter day for our bookkeepers up and down the UK, where we come together to network, learn, grow, and catch up, too!

The day also saw some business owners awarded for their successes in 2024.

This included Grant Dye from Rosemary Bookkeeping North Kent and the Isle of Sheppey, who won an award for significant business growth in the last year.

In 2024, Grant made key strides in his business development through providing consistently excellent services to his clients through a range of vital services, including help using software like Xero and QuickBooks to work towards targets around Making Tax Digital and meeting crucial deadlines in the bookkeeping calendar. Delivering a valued service to his clients across the region has allowed Grant to exceed targets for his business.

Congratulations!

Bobby Garland, Brand Leader for Rosemary Bookkeeping, said:

“Grant’s commitment and steady performance have seen him hit the £50k milestone, a testament to his professionalism and client dedication.”

Need an award-winning bookkeeper?

If you’re in North Kent, Isle of Sheppey and the surrounding areas and could benefit from professional bookkeeping services from a local expert, contact Grant on 07970 696391 or find your nearest Rosemary Bookkeeping business to see how we can help you today.

Rosemary Bookkeeping Brand Leader talks the future of bookkeeping

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Rosemary Bookkeeping Brand Leader Bobby Garland sits down with Aaron Patrick from Ask the Accountant. 

Recently, Bobby Garland, Brand Leader for Rosemary Bookkeeping across the UK, featured on Ask the Accountant while visiting the Finance, Accounting and Bookkeeping Show (FAB).

Alongside playing a game of (Not) Top Trumps (see full video), the two dive into discussions of the best ways to capitalise on networking events like FAB, Bobby’s plans for Rosemary, and the evolution of the bookkeeping industry.

In this blog post, we’ve transcribed the highlights of their conversation, but you can watch the full interview here.

(Note: Some quotes have been slightly tweaked for clarity and ease of reading.)

Aaron: Bobby, first of all, tell people who you are, why you’re here and what you want to talk about.

Bobby: “My name is Bobby Garland. I am the Brand Leader for Rosemary Bookkeeping. I’m relatively new to the accounting industry. I’m just a couple of years in, but I have lots of experience working with SMBs on business growth and collaboration plans and things like that.”

And relatively new in this new role as well?

“Yeah, my role at Rosemary Bookkeeping started in January, and it’s a franchise network. I’m the Brand Leader, so I help support the whole network and take it in the direction I think will benefit the whole accounting community.”

So, Bobby, what are you looking forward to on day two of FAB?

“I want to spend a bit more time on the HMRC stand. When we’re looking at things like Making Tax Digital coming into fruition, I feel like everybody’s got over this paranoia of ‘Will it, won’t it?’ We’re in the home run now, they’re sending letters out. I feel like we’re locked in. So, I think it’s their time to shine. Some of their speakers have been really, really good, really engaging. I feel like they’ve brought their A game this year.”

How do you ensure, from any event, that you act on it? What are your key tips?

“Step one is definitely to learn something. I always look at the speakers and pick out a non-negotiable. And then I’ll write something down: just one thing to do the next day. Whether that’s rolling something out to my network of bookkeepers, or going and having a demo booked in.”

“I’ve booked three demos yesterday, just from walking around. You’ve got new players in the game, like Mimo. I was talking to them, and was like, I’m just gonna book a demo. It’s great chatting to them here. But sitting down and having dedicated time is better. If you do it while you are here, you’ll commit to it. My meeting with them is next week, and I’ll attend that and get something from it. My diary next week is jammed, with just demos. I think that’s how you’re gonna get something out of these things: committing to something later date.”

You are in a unique position where you’ve got twenty different bookkeepers, and that’s growing, right? You’ve got X amount of differing pain points to solve. What are the key pain points you are looking to fix?

“Yeah, so one of the things that I think I’m passionate about with the Rosemary Bookkeeping Network is flexibility. Because with new or existing franchise partners, they’re all in different places. You’ve got some who are just one-man operations and have been going for a year. You’ve got others who have been going for 15 years and have employees and a couple of offices, so sometimes there isn’t a one-size-fits-all solution, and if we’re rolling something out across the network, I’ve got to make sure that it’s fit for purpose for everybody”.

“So, I really love something scalable, that can be relatively inexpensive to start with, but is happy to grow. And those sorts of solutions are ones that I keep an eye out for. Because they’ll benefit everybody, and that’s ultimately one of the priorities of my job: servicing and supporting everybody in the network equally.”

I completely understand that you want to be flexible and make sure it’s right for the purpose, but how do you keep on top of that? What’s your pro tip? Because a tech stack, when it’s just one for each category, is hard work. So, trying to keep it on top of all of that, what’s your secret there?

“I’ve sat in a lot of demos the last couple of weeks. Starting in the role in January, that’s something that I’ve prioritised because when I worked at QuickBooks and worked with accountants on software and even before that, working in marketing and business development roles, one of the things that I was always keen on was to be a functional expert.”

“I’m not a bookkeeper. I’ve got no qualifications around that, cards on the table, but I could use QuickBooks. And I felt that that was important when working with my accountants then. And this is no different, working with my Rosemary bookkeepers, I’m not going to be able to deal with the bookkeeping, but it’s important I understand how it works. We’re looking at AML software at the moment, getting under the skin of that, and I love it because I love learning about new stuff, new tech, new everything.”

It’s problem-solving.

“Yeah. I think you get far more out of it if you immerse yourself in it. Sometimes I can go a little down the rabbit hole, but that functional learning is key. I don’t want to just be somebody who’s talking about it. I want to be able to pick it up and show somebody. My aim is that all of my bookkeepers, for example, would be able to use it a million times better than me, but at the starting point, I can explain it and show them.”

“Even though I’m not a bookkeeper. I’m a functional expert to a degree. Don’t trust me to do your books though! [laughs].”

But credit to you, because we’ve done videos and product demos and all sorts together in the past, and one thing I admire about you is that you get your hands dirty, get involved in the product and kick the tires.

You were the first to say, ‘This doesn’t do this, have I missed something here?’ Because you were questioning, am I the problem, or is it the software? And I think that’s something that, in your role, is really important.

“I get a bit passionate because I see something, and it doesn’t quite do what I want it to, and I’m like, ‘Well, why doesn’t it do that? And should it?’ And then you go round in circles, and you’ve got to think about everybody in many different positions. But for me, immersing in it is the only way you’d uncover those issues.”

“And credit to software companies. It is a challenge because they’re not bookkeepers either. So, some of the best innovations come from people in the industry using the software. You can see some of the software created by accountants and bookkeepers, they stand out because they’re using it day-to-day.”

“And I think leveraging that information, whatever software company you are, is essential to success and leveraging the experience so people who will use it every day.”

We all love the big shinies, the big new feature releases. We were talking off air, weren’t we? Apron is releasing the new–

“The new card, yeah.”

We love that. And that’s an amazing thing to celebrate. But actually, some of the best work they’ve done lately is those little, tiny workflow changes, which are game-changing for the people using and relying on it daily.

“The number of times I’ve had a bookkeeper, or an accountant come up to me and they’re like, ‘Oh my God, do you know what my favourite feature is?’ And they say it, and I’m like, ‘Does it do that? Show me.’ And sometimes we miss that, especially those of us who aren’t bookkeepers or accountants, and we need to listen to that sort of feedback, so we know what the priorities are. Otherwise, how else are we going to learn?”

“But that happens all the time. I love it, though, because you learn something new. The best bit is that an accountant or bookkeeper tells me that, and then I go and find another accountant or bookkeeper, and I go, ‘I tell you what, have you seen this?’ And they’re like, ‘No. Oh my God, that’s amazing.’ I’m like,’ Yeah, I found that.’ [laughs]”

So, obviously, you’re passionate about this industry. What do you love most about it?

“I’ve worked in lots of industries. When I’ve done marketing, I worked with SMBs across all different industry verticals. Now that I only work within the accounting industry, the thing I notice is that it’s so collaborative. Everybody gets on, and I think that’s because it’s such a necessary service that there’s obviously competition, but accountants are far more likely to sit down and help each other than ignore each other. If one’s got a problem – and I saw it outside when we were queuing to get in, and one accountant was chatting to another about year end and how busy they were in January and then one’s telling the other like, ‘I’ve done this, you should think about that’ – and I think that’s brilliant.”

“Collaboration and partnership, in my career, are big priorities. I read it the other day, and you must have heard this: ‘If you want to go fast, go alone. If you want to go far, go together.’ And I love that. That is ingrained in me as a person. And I see that all the time in this industry, above other industries, and I’ve worked in a lot of others.”

And there was a chance that you could have left the industry, and you decided this is the industry you want to stay in. So, that must say something.

“Definitely. And I’ve been dedicated to this industry for, in my eyes, a relatively short period, two or three years now. But I’ve made so many connections and friends. Even just coming here today, the number of people I’ve seen who stopped me to say hello, I’ve really loved keeping those connections going.”

So, that’s what you love about the industry. What would you change about the industry?

“That’s… that’s a tough one. I think pace. I do think that accountants and bookkeepers, rightly so, are relatively risk-averse. And I think that’s fair to say, and that’s not a detriment to any of them, but they should be. I’d want my accountant to be risk-averse.”

“But I think sometimes when it comes to things like Making Tax Digital for income tax coming in and new software and efficiencies, we can err strongly on the side of caution. And I’m not saying throw the baby out with the bath water, but it would be good if we had more risk-takers, to give it a go and see it through. But it’s their business, so I get it. So many accountants are self-made, so I understand why they don’t.”

“In my time at QuickBooks and at Rosemary, working with my franchise partners, I want to be super supportive, so it doesn’t blow up in people’s faces. Nobody wants that. But try those little things, try something new. That’s the one bit of advice.”

Exactly, and it’s that disruptive mentality, isn’t it? Sometimes we feel like we shouldn’t disrupt. But that little bit of disruption won’t stop the whole industry, will it?

“Absolutely. And it doesn’t need to be changing everything.”

Little tiny steps.

“A hundred per cent. If you made a 1% change every day, that adds up. It is tiny, tiny steps. So, yes. That would be the thing. But I think that’s coming.”

“Even in the few years I’ve worked directly in the industry, you see a change. And I think it is a testament to guys like you who lead from the front. And you are seeing more people putting themselves out there, doing podcasts and talking and things like that.”

Sharing the knowledge, right?

“Yeah. Yeah, definitely. So, I think it is happening.”

If we got you a time machine, think about something you are using today. It could be an app, a piece of software, or a gadget. What piece of technology would you love to take back 12 months and say, ‘You should be using this now.’

“Chat GPT, I have doubled down on things like that in the last couple of months, and it has transformed my life. I think it’s such a useful assistant. It’s not replacing anything.”

It’s a brainstorming tool, isn’t it?

“I love, like I said earlier, collaboration and some of my best ideas come when chatting with someone, and they evolve in a conversation. But I work remotely, and the franchise partners I deal with are all over the UK. So, I’m not necessarily with someone every day. I don’t work in an office. So, Chat GPT is really helpful when I’m trying to brainstorm.”

I don’t know if you’ve seen some of the videos we’ve done on the training, but now it’s evolved to watching your screen and being contextualised on your screen, so you’re thinking about the training point of view, you have that app on the screen.

It’s telling you, ‘If I need to reconcile this or I need to do this, or I need to add this transaction,’ it can go, ‘Oh, go up here, click that. See this box here? Make sure you put it in there. No, no. I wouldn’t use that date. And it’s watching you do what you’re doing, giving that constant feedback. It is very, very, very scary, but very, very good.

“It’s terrifying. Don’t think about it too much.”

So, we’ve gone back 12 months, let’s go forward 12. How do you think AI is going to impact the accounting industry?

“I think the more and more it’s integrated, the more it’ll get used. Intuit Assist is a great example of that. You’ve got Jax with Xero, in the accounting world. Once they’re properly there, then I think that will accelerate everything.”

“I am slightly – not worried – excited and terrified of where all this will be in two years. So, it’s exciting times, and I think it’s in addition to your brain. It’s not instead of your brain.”

Well, that’s where we add value as bookkeepers and accountants, right?

“The other thing I think is massive about the accounting industry is that it isn’t about numbers. It’s about people.”

100%.

“It’s a people industry, and nothing’s going to change that. If you could spend more time with people, and AI is doing some of these monotonous things for you, it gives you time to have that coffee with your client that you couldn’t before, or go out to that networking event and meet new clients. Those are the things you want to do. I don’t know about you, but I love spending time with people; the more of that I can do, the better.”

Awesome. So, this is your opportunity. Plug, plug and plug away. And tell the people where they can find you and what you’re all about.

“Rosemary Bookkeeping is a franchise network. I’m the Brand Leader of it. What I’m looking to do with the brand is develop it so that we can partner with accountants. MTD for income tax is coming; accountants are going to need help. And I honestly believe bookkeepers are the answer. Ami Copeland talked about it at Engager Labs, collaboration is key. They’re not in competition with each other, so I’m looking for accountants who are looking for help that the Rosemary Bookkeeping network can help with, and we’re across the whole country.”

“I look after and know them all personally. I’m really excited about that, and hopefully working with some people I already know and maybe some new people as well. I’m really excited to be part of the network.”

It’s been great. Thank you for coming on.

“I really appreciate it. Thank you.”

Need help with your bookkeeping?

By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.

We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.

Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.

What is Making Tax Digital?

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Everything you need to know about MTD and how having a bookkeeper helps.

Making Tax Digital (or MTD) is part of HMRC’s ongoing initiative that has been underway since April 2019 to digitalise the UK tax system.

So, when and how will MTD affect your business? And how should you go about paying it? In this blog post, the experts at Rosemary Bookkeeping have all the answers.

What is MTD?

MTD has two core components:

  1. Replacement of paper-based records and a requirement for businesses and organisations (including those with property-based incomes) to keep digital accounting records.
  2. Using compatible software to submit tax returns and updates to HMRC – The government will be removing their current online tax services when a business registers for MTD and will require businesses and organisations to use software compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC instead.

MTD Timeline

Making Tax Digital was initially scheduled to become mandatory for income tax in April 2024. However, in December 2022, the timeline for compliance was revised.

    • Starting from 6 April 2026, those with an annual gross income exceeding £50,000 from self-employment and property letting will be required to comply.
    • From 6 April 2027, the rules will apply to individuals with an annual gross income of over £30,000 but less than £50,000 from self-employment and property letting.
    • Lastly, from 6 April 2028, the compliance will extend to those earning between £20,000 and £30,000 from self-employment and property letting.

The changes and how they affect your business

To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website. If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns, reduces the time you spend on administration, and gives you more time to maximise your business opportunities, productivity and profitability.
  • In the case that you opt to use cloud-based software, you’ll be able to see in real-time what is happening in your books and have better control over your finances, allowing you to make up-to-date and well-informed business decisions.
  • Using compliant digital software means that submitting information to HMRC is far simpler and less stressful.
  • Some accounting software links directly with your bank account, further reducing the paperwork and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD compliant software.

How Rosemary Bookkeeping can help with Making Tax Digital

We understand that making the jump to digital can be scary and daunting. But it’s not as costly or difficult as it seems, especially with the help of an expert bookkeeping service like Rosemary Bookkeeping. The benefit of changing to MTD now is that everybody else has already had years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is a very simple process.

We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out. Going digital may be a scary prospect, but by using a bookkeeper, your tax may be going digital, but your bookkeeping experience isn’t. We will assist however you need to get accustomed to the software, or simply do the work for you and make the process of sending returns to HMRC straightforward. We will also send generated returns directly from the software so that you have a well-kept and organised backlog of your records.

The main drawback of digital services like Xero and QuickBooks is that they depend on your financial knowledge and ability to work through MTD yourself. Our bookkeeping experts are trained to work digitally using MTD compliant software like Xero and QuickBooks, and Sage, but are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.

As Rosemary Bookkeeping is well-versed in MTD and online services, we can also offer advice on which software would be best for you, and often offer competitive prices for software subscriptions.

Additionally, we also offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software. We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

To start receiving expert help and advice from your local bookkeeping experts, find your nearest Rosemary Bookkeeping business today for your free, no-obligation quote.

MTD for the new tax year

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How a bookkeeper can help you manage MTD.

MTD (Making Tax Digital) is a government initiative to digitalise the UK tax system.

Introduced in 2019, developments at the beginning of the 2022 tax year saw MTD extend to include VAT for businesses.

With VAT return deadlines looming, many businesses have difficulty understanding MTD and its implications.

At Rosemary Bookkeeping, our experts are well-versed in online systems and financial processes.

That’s why we’re here to share everything you need to know about MTD for the new tax year.

Refresher: What is MTD?

MTD has two core components:

  1. Replacement of paper-based records

MTD requires businesses and organisations (including those with property-based incomes) to keep digital accounting records.

  1. Using compatible software to submit tax returns and updates to HMRC

The government will remove the current online tax services when businesses register for MTD.

They will require businesses and organisations to use software which is compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC.

MTD Timeline

  • 1st April 2019: MTD has been in place since this date for the majority of VAT-registered businesses above the tax threshold of £85’000+ turnover. These included partnerships, sole traders, limited companies, non-UK businesses registered for UK VAT, and charities and trusts.
  • 1st October 2019: There was a six-month deferred start date to support more complex businesses.
  • 1st April 2022: MTD became mandatory for all VAT-registered businesses and organisations.

Upcoming Implementations

Making Tax Digital was initially scheduled to become mandatory for income tax in April 2024. However, in December 2022, the timeline for compliance was revised.

  • Starting from 6 April 2026, those with an annual gross income exceeding £50,000 from self-employment and property letting will be required to comply.
  • From 6 April 2027, the rules will apply to individuals with an annual gross income of over £30,000 but less than £50,000 from self-employment and property letting.
  • Lastly, from 6 April 2028, the compliance will extend to those earning between £20,000 and £30,000 from self-employment and property letting.

Eligibility for MTD

Even if you aren’t legally obligated, you have the option to voluntarily follow the MTD rules if you choose to do so.

To identify individuals who need to comply with the MTD regulations starting in April 2026, HMRC will first review all self-assessment tax returns submitted for the 2024/25 tax year.

Consequently, if you file your tax return for that year by the deadline of 31 January 2026 and your income from self-employment and/or rental income surpasses £50,000, you can expect to receive a notification letter from HMRC in February 2026 informing you of your obligation to comply with MTD beginning 6 April 2026.

The coming changes and how they affect your business

MTD legislation already means you must have completed your ITSA through MTD-compatible software.

If you were not already doing so, you’re now required to keep digital tax records and submit this information to HMRC through an MTD-compatible software when conducting your self-assessment tax returns.

Exceptions

If your business has received an MTD exemption, it will still be in effect.

These can be caused by factors such as:

  • Age, a disability or where you live
  • You object to using computers on religious grounds
  • Any other reason why it’s not reasonable or practical

To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website.

If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns and reduces time spent on administration. It also gives you more time to maximise your business opportunities, productivity and profitability.
  • If you opt to use cloud-based software, you’ll see in real-time what is happening in your books and have better control over your finances, allowing you to stay up-to-date and make informed business decisions.
  • Using compliant digital software means submitting information to HMRC is far simpler and less stressful.
  • Some accounting software links directly to your bank account. Further reducing the ‘paperwork’ and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD-compliant software.

Why now?

The new financial year is the best time to reset how you manage your books.

This period is notably less disruptive, as things are changing already.

By introducing new systems to work smarter, you keep your business information secure and make things easier to manage going forward. 

How Rosemary Bookkeeping can help

We understand that making the jump to digital can be scary and daunting.

But, it’s not as bad as it seems – especially with the help of an expert bookkeeping service like Rosemary Bookkeeping.

Expertise

The benefit of changing to MTD is that we’ve had around four years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is simple.

We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out.

Going digital may be a scary prospect. Using a bookkeeper, your tax may be digital, but your bookkeeping experience isn’t.

Software Support

We will assist if you need to acclimate to the software or do the work for you.

We also send generated returns directly from the software, so you have a well-kept and organised backlog of your records.

Our bookkeeping experts are trained to work digitally using MTD-compliant software like Xero, QuickBooks and Sage and are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.

As Rosemary Bookkeeping is well-versed in MTD and online services, we can advise which software would be best for you and often offer competitive prices for software subscriptions.

Additionally, we offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software.

We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

Struggling with your bookkeeping?

The new tax year is a busy and stressful time, particularly hot on the heels of January Self-Assessment tax return deadlines.

We also know that keeping track of your finances isn’t easy, especially when also trying to figure out MTD legislation and new software.

If you had a stressful time sorting your ITSA, the new tax year that swiftly follows may be a real cause for concern.

By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.

We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.

Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.

The best bookkeeping tools for small businesses

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Tools of the trade that will save you time and effort in bookkeeping.

As a small business owner, your time is gold dust.

And with so much to do, your bookkeeping is a chore that takes up that valuable time.

But, bookkeeping is not something you can skip out on, particularly with the growing need to keep a digital record.

Luckily, there are many tools on hand that small business owners can use to make bookkeeping easier.

At Rosemary Bookkeeping, we know there’s a lot to consider. What works for one business may be the wrong fit for another.

That’s why we’re breaking down the tools of the trade so you can figure out what bookkeeping aids work for you.

Quickbooks

If you’re researching, you might’ve noticed that many small businesses use QuickBooks Online.

But what makes it so good?

Pros: 
  • Scalable
  • Commonly used by professionals (including us!)
  • Integrates with 3rd party systems and Quickbooks Payroll
  • Cloud-based and available on mobile
  • Easy to use: All features are accessible through a central dashboard
  • Has a plethora of online resources to give you the support you need
  • 30-day trial
  • 4 Subscription plans that vary in price for business size, but can be upgraded as your business grows
  • More advanced plans offer more advanced features, though most small businesses will find the Simple Start Programme (£14/m.o) will suffice
  • Customisable options with mobile app
Cons: 
  • Requires an upgrade for additional users
  • Can suffer from syncing problems with banks and credit cards

Xero

Another popular accounting tool, Xero is rapidly growing into a bookkeeping giant. And like QuickBooks, Xero is designed to grow with your business across its different subscription options.

It also integrates with hundreds of third-party business solutions, many of which you may already use, like Gusto, for payroll.

Here’s the full lowdown:

Pros:
  • Cloud-based and available on mobile
  • 3rd party payroll integration through Gusto and app marketplace
  • Integration with 3rd party services allows online payment collection
  • Simple inventory management
Cons:
  • Limited customer service and reporting
  • Fees charged for ACH payments

FreeAgent

Another cloud-based software, as a FreeAgent partner, we recommend it for freelancers, consultants, and project-based businesses.

Pros:
  • Cloud-based and available on mobile
  • Doesn’t limit transactions behind a paywall
  • Supports unlimited users, clients, invoices and transactions for one monthly price
  • Ideal for keeping track of billable hours and expenses
  • Runs fully RTI-compliant payroll
  • Allows you to create and send estimates and invoices
  • Uses personalised Tax Timeline of upcoming deadlines and amounts due, cash flow, and profitability
  • Files VAT, RTI payroll and Self Assessment tax returns directly to HMRC (ideal for sole traders and limited companies)
Cons:
  • App development and compatibility for Android is lacking, but underway
  • Tax Timeline doesn’t offer a comparison of year-on-year comparison

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting is specifically geared towards the needs of small to medium-sized corporations and offers two plans for small business owners.

However, it has been described as overly complex and difficult to use.

Here are the pros and cons:

Pros:
  • Cloud-based and available on mobile
  • Offers a free trial or demo before buying
  • Offers invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management
  • Provides monthly, quarterly, and annual financial reports and reports. These include balance sheets and income/cash flow statements
  • Produces comparison of financial statements, e.g. year-to-year.
  • Many features are preset  and ready for the user to make management streamlined, but also offer multiple customisation opportunities
  • Offers capabilities for budgeting or cash flow forecasting, job costing, auditing, and automated workflows, as well as industry-specific features.
  • Uses a central dashboard to access information and data in one place
  • Link your credit cards and bank accounts
  • Integrates with third-party apps
Cons:
  • Difficult to use and set up. May need a Sage expert to support you. (Luckily, we are!)
  • Features can be complicated to use and need expert support
  • Homepage can become cluttered if not customised
  • Geared towards larger businesses.
  • Lack of documentation and support, often necessitating further support

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses.

And many can be difficult to use without the right support.

At Rosemary Bookkeeping, we work with accounting tools and offer bespoke support to get the most out of each software.

By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you.

From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting or looking to hire a bookkeeper to support your growth, the best bookkeeping tool for any small business is still a Rosemary Bookkeeper.

To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation with your local expert today.

How to Add Contacts in Xero – Teri’s Tips

Learn how to add contacts in Xero with Teri Cotta.

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

And there is still a lot to get to grips with.

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.

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.

In today’s Teri Tips, you’ll see how to add contacts in Xero.

What are contacts?

Contacts are customers and suppliers that you do business with.

Add your existing contacts during conversion so you spend less time on data entry when you start creating bills and invoices in Xero.

From the dashboard, click contacts and select all contacts.

The list gives you an overview of your contacts and their phone number, email, and account balances.

Adding a contact

Basic information

Start by entering the contact’s name.

This can be a business or an individual.

If you use client codes or any other form to uniquely identify your contacts, click Add Account Number to add them.

Next, add the primary person and their email address.

Xero will automatically select this person whenever you email this contact.

Click the link to add additional people that are associated with this contact, and that you need to interact with.

Enter their name and email address and enable them to receive the same emails as the primary person.

Click the X to remove additional people.

Next, enter phone details and website address, if you have this information on hand.

You can always edit the contact and add this later.

Address

First, enter a postal address and click the link.

If the street address is the same, Xero automatically copies the postal address for you.

Financial details

 If you know in advance what sales or purchase settings will apply to most of the invoices and bills, enter them now.

For example, all the invoices will be tax-inclusive and coded to the main sales account in Xero.

Tax information

Next, add contact-specific tax information and tax settings.

For example, choose the default sales tax.

Enter a business registration number.

If the contact has an official number you want to show on documents, specify ‘Sales discount applies’ and change the currency of the default currency.

Xero does not apply for this contact.

If you use batch payments to bundle multiple bills into one payment transaction, enter their bank details.

Overriding default invoice settings

You can override the default invoice settings for this contact.

For example, choose a different branding theme or change the default due dates.

If this contact also uses Xero, ask for their Xero network key and enter it here.

It allows you to send sales invoices or bills from your Xero organisation directly into theirs.

When you’re done, click Save.

Xero Contact details

Inside, the Contacts page, you’ll need to close the confirmation message to see more details.

In the right panel, Xero displays the contact details and addresses.

It includes useful links to send an email, view their website and look up their location on a map.

Collapse this panel by clicking the ‘^’ to see more.

These are the financial defaults you entered that Xero would apply to the next invoice or bill.

About Contacts

Each contact in Xero can function as a customer, supplier, or both.

Xero automatically classifies them once you’ve entered an invoice or a bill.

If you have many contacts to bring into Xero, you can use the import contacts function to load them in bulk.

Importing contacts in bulk

There are three steps in this process:

  1. Download Xero’s contacts template file

Start by downloading the import template using the hyperlink under this step.

  1. Copy your contacts into the template

Then export your contacts from your current system and copy them into the template.

  1. Import the updated file template into Xero

Moving forward, you can use the ‘+’ icon from anywhere in Xero to add new contacts.

Need help with your bookkeeping?

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 will be able to 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.

How to Import a Sales Invoice in Xero – Teri’s Tips

Learn how to import sales invoices in Xero with Teri Cotta.

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

And there is still a lot to get to grips with.

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.

In today’s Teri Tips, you’ll discover the cloud and explore how cloud accounting software like Xero can help your business.

We’ll look at the main features of Xero and give you some helpful tips to get you started.

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.

In this blog post, you’ll learn how to import sales invoices in Xero.

Importing Invoices in Xero

Let’s start by navigating to the sales overview.

Click ‘Business’ and select ‘Sales Overview’.

Xero summarises the status of all your invoices. You can click a status to drill further and see the invoices behind it.

If you have a few unpaid invoices before you go live in Xero, you can enter them manually one at a time.

But if you have many unpaid invoices, import them in bulk to save time.

There are three steps in the import process.

  1. Downloading the invoice template file from Xero
  2. Copying your invoices into the template
  3. Importing the updated template file 

Using the Xero template

Xero’s invoice template contains the correct column headings needed to import your invoice data.

Once you have downloaded this, export your invoices from your old system as a comma-separated list using Excel or another spreadsheet editor.

Then, copy and paste your invoices from the export file into the Xero template.

For the import to work, ensure you do not remove, re-order or rename any of the columns.

Copy your invoice data across and make sure you place each column under the correct heading.

‘Contact Name’ and ‘Invoice Number’ are the only required columns to successfully import draft invoices.

If you’ve already entered contacts in Xero, ensure the name is exactly as it is and Xero, otherwise, the import creates duplicate contact records.

Invoice numbers must be unique for every new invoice in this file, and different from any invoices already entered in Xero.

Use the same number for an invoice with more than one line item; Xero will create a single invoice with multiple lines.

For new contacts, copy or enter as much information as possible.

That way you don’t have to manually edit new contacts in Xero after the import.

Columns marked with an asterisk are mandatory if you want to approve invoices after the import.

When you copy dates across, use the format day, month and year.

Enter a clear description so you can easily reconcile the transactions in Xero when payments come through.

Next, copy the quantity, unit amount, and tax type across. Ensure the tax type name is exactly as it appears in Xero.

There’s no need to include the total or tax amount, as Xero automatically calculate these during the import.

Lastly, code the item to the relevant sales account in your Xero chart of accounts.

When you’re done preparing the import file, save it as a CSV file, then return to Xero to continue with step three.

Importing the updated template file

Click ‘Browse’ and select your saved CSV file.

Decide if you want to update contacts with the imported address details, this will overwrite any existing contacts you’ve already loaded in Xero.

Also, choose how you want Xero to handle the tax amount.

Check out the amount in your file and select whether it is tax-exclusive or tax-inclusive.

When done with these settings, click ‘Import’ and review the import message.

If there are errors in the file, fix them and try again.

If there are no errors, click ‘Complete Import’ and Xero will import invoices into the draft tab.

When viewing an invoice with multiple lines, you will see the invoice number dates, description, quantity and unit price match the data in the import file and Xero has calculated all the amounts.

The final step is to approve invoices in bulk.

Select them all and click ‘approve’, then click ‘ok’.

Xero then marks invoices as approved and moves them to ‘Awaiting Payment’.

Now, if you view contacts, you will see that Xero has added the contacts from the import file as they did not exist before, you will also have an overview of the amount they owe you.

And with that, you’re done!

Need help with your bookkeeping?

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.

How will AI affect the bookkeeping industry?

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We sat down with the CEO of MYT AI Powered Accounting Software, Oumesh Sauba, to see how he sees AI as shaping the bookkeeping landscape.

It’s fair to say that AI has exploded onto the scene for businesses worldwide in recent years.

As such, many are keen to see how AI will affect the bookkeeping industry.

The CEO of MyT, an app that utilises AI to automate accounting processes, has embraced AI for longer than it has been a hot-button topic.

We sat down with him to discuss the burning question: How will AI affect the bookkeeping industry as we know it today?

Oumesh and AI

As AI only began making a splash, many were unsure what it could do, yet Oumesh Sauba and MyT were making waves and winning awards for innovation using AI as early as 2021.

But, as Oumesh tells us, his relationship with AI and its processes began in 1999 when his IT-savvy cousin developed technology to recognise objects in photos.

As soon as this began to take shape, he says they knew the only limitation was the tools at their disposal.

“We knew the power of technology at the time that [and] what you could do. The only limitation in those days was the capacity of the computer or the telephone or the instrument.”

In 2013, Oumesh’s business realised they could do much better with the improved hardware and software and started to test a form recognition system using optical character recognition (OCR) technology.

This has allowed them to create MyT, which can use photo recognition and learn from data to streamline many accounting processes.

How does this technology relate to bookkeeping?

The draw of AI within the accountancy sector is its potential to simplify and automate its repetitive procedures like processing invoices, reconciling bank statements and data entry.

In 2013, when Oumesh was developing the technology that now makes up MyT, the challenge was not just reading the information but extracting specific details like VAT, dates, and supplier names, as the computer’s binary nature required training the system to recognise these elements.

Today, AI systems like MyT can automatically process invoices, posting the entries into the system.

This provides significant value for accuracy and efficiency when handling a vast amount of data simultaneously.

Will AI change the role of a bookkeeper?

For bookkeepers, the changes AI could bring is the potential – due to the automation of repetitive tasks – to focus more on strategic and advisory services.

AI-powered accounting software may be able to recognise patterns, differentiate between different types of invoices or bank statements, and automatically categorise and process the information.

This has the potential to increase the capacity of bookkeepers and provide more accurate and timely financial information.

Who will be accountable?

With concern about how AI will be held accountable in case of error and other potential issues, Oumesh argues the role of a bookkeeper may change, but not become obsolete.

In his view, bookkeepers and accountants will still be liable for the data and the processes, as they cannot simply shift the responsibility to the AI system.

He argues that AI should be seen as a tool that can help improve efficiency, accuracy, and capacity, like the evolution from paper to spreadsheets and desktop software to cloud-based solutions.

The key, he says, is understanding how the system works and how to use it effectively.

“A lot of these AI tools are tools”, he says.

“They’re like a screwdriver. Before, you had a hand screwdriver, now you’ve got an electric screwdriver. They’re still the same thing. People will use the technology, but it doesn’t absolve them of responsibility.”

As such, Oumesh sees that regulation and responsibility may focus more on harmonising global standards rather than significant changes to the existing accounting regulations.

The key takeaway for Oumesh is that AI could transform the sector by allowing bookkeepers and accountants to focus more on their customers and become more competitive.

However, it requires successful integration, upskilling, and resilience to address any issues that may arise.

Advancements in bookkeeping: MTD 

With the rise of digitalised solutions to support businesses with Making Tax Digital – AI presents a hugely interesting topic of conversation.

Making Tax Digital is the government’s plan to make fundamental changes to the tax system – transforming tax administration by making it more effective, efficient, and simpler for taxpayers.

As such, businesses are now required to:

  • Keep their VAT records digitally
  • Provide their VAT return information to HMRC through Making Tax Digital compatible software

AI may support accounting software and bookkeepers to aid in the processes and compliance with MTD, making it a more attractive and simpler process for businesses across the UK.

Watch this space for more on the future of bookkeeping!

Need a bookkeeper?

With legislation and technology changing regularly, for simpler, effective bookkeeping, find your local Rosemary Bookkeeping expert or call 0345 862 0072 today.

Thank you to Oumesh Sauba from MyT and Dean Kokshun from Rosemary Bookkeeping Croydon for their help in bringing this article together.

Teri’s Tips: Get to know Xero – The Essentials

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Teri Cotta walks you through the A-X of Xero.

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

And there is still a lot to get to grips with.

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.

In today’s Teri Tips, you’ll discover the cloud and explore how cloud accounting software like Xero can help your business.

We’ll look at the main features of Xero and give you some helpful tips to get you started.

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.

What is the cloud?

First things first… what is the cloud?

The cloud lets you store and access your data over the internet through a network of servers.

Instead of a computer drive, you can use software in the cloud from any device with an internet connection.

The cloud is changing how we work, bank communicate, buy and sell.

You might be using the cloud already without knowing it.

What platforms use the cloud?

Let’s look at some common scenarios you might have experienced using the cloud.

Account information only used to be available during bank opening hours, but online banking stores your financial data securely in the cloud to access 24/7.

  • Online communication software (like Skype and Slack): Video chat functions that use the cloud
  • Calls and instant messaging services: These use the cloud so that conversation lines are available whenever you’re online
  • Streaming services (like Netflix and Spotify): Use the cloud to watch films, listen to music and view live events.

Xero is cloud accounting software that lets you access your financial data anytime, anywhere, and on any device with an internet connection.

Cloud-based software – The Pros

Businesses can benefit significantly from using cloud-based software like Xero.

Accessing cloud software through a web browser or mobile app means you can always retrieve your financial information.

  1. Multi-access

Cloud software lets all users work from the same information simultaneously.

  1. Changes are made immediately

There are no discrepancies, and every Xero user has a unique login, so you can easily track who carries out each task.

  1. Cloud software updates are automatic

You’ll never lose time or money to software upgrades.

  1. Automatic version updates

When you log in to Xero, you always use the most up-to-date version.

Data stored locally on a computer risks being corrupted, stolen, or lost.

But cloud software is stored securely and backed up automatically.

If something unexpected happens to your office equipment, you can get a new laptop and be back on the job straight away.

  1. Secure connection

Cloud software connects securely to organisations like banks, bringing the information directly into the software.

Data flow between software applications means reduced processing time and data entry errors.

  1. Automates labour-intensive tasks

Reconciling accounts and chasing overdue invoices are done automatically, freeing up your time to work on your business.

The long and short of it is, that Xero is a complete platform with all the features you need to run every part of your business, depending on your region and subscription.

Xero can even include payroll, expenses or projects.

The main features of Xero

So, let’s do a quick tour of Xero’s main features.

The navigation bar lets you move easily and quickly around Xero.

Create new or find other transactions

Use the ‘Plus Icon’ to create new transactions like invoices or bills directly from the navigation bar.

Search for contacts or transactions like quotes and view notifications to keep up to date with all things Xero.

Custom Dashboard

The custom dashboard shows key business metrics like your cash flow position, outstanding items to reconcile, and upcoming invoices and bills payable.

It also gives you an up-to-date picture of how your business is performing at any time.

Bank Feeds

‘Bank Feeds’ automatically import transactions from your bank or financial institution directly into your Xero organisation.

Thus, removing the need for a manual import.

It helps keep your account current and gives an accurate view of your business’s performance.

Here, Xero shows bank statement lines on the left with suggested matches on the right.

Suggestions are based on existing transactions like invoices and bills, bank rules or previously reconciled transactions.

Click ‘OK’ to quickly reconcile the transactions and update your cash flow.

Invoices

Another way to keep on top of cash flow is to send online invoices with online payment options.

Create professional-looking quotes and invoices and send them when you’re still with the customer.

If you register for your Xero organisation with the global E-invoicing network, you can also send and receive an invoice.

Add your logo and payment details to promote your business brand.

And send the invoice with just a couple of clicks.

Xero lets you know when online invoices are sent, viewed or paid.

Let Xero do the hard work and get paid faster with automatic reminders to help manage overdue invoices.

Just decide when and how often you want to send them.

The more ways and the easier you make it for the customers to pay, the less time you’ll spend chasing payments.

Xero research shows that invoices are paid 50% faster when the business connects to a payment service.

They let customers make secure payments directly from online invoices in just a few clicks.

Collated client details

Add all your business contacts to Xero and keep your supplier and client details in one place.

Create groups to manage your contacts and use smart lists to target clients.

Go paperless and store important documents and business information online in the Xero files library.

With automatic backups, you don’t need to worry about ever losing financial data.

You can even send documents directly to your Xero file library using a unique email address.

Templates and reporting

Every Xero subscription comes with financial and accounting reports and budget templates.

Customise them to show what matters most to your business.

Set the date range, compare periods, and modify the columns to change the layout of a report and then save it as a custom report to reuse later.

Staying on top of cash flow is essential for a business to survive.

Many business functions rely heavily on cash, like paying staff and buying supplies.

Xero analytics makes it easier to make the right decisions for your business.

It has two easy-to-read dashboards.

Use short-term cash flow to spot opportunities and risks ahead so you can act immediately.

Use the business snapshot to track key performance indicators like income and expenses and see how quickly your customers pay you.

What Xero does for you

You’re probably already using software in the cloud, and now it’s time to get the benefits of cloud software for your small business.

Xero affords you:

  • A full picture of your business’s financial information is accessible anywhere, anytime from any device with an internet connection.
  • All the tools you need to run and grow a successful business.
  • Direct bank saves and daily reconciliations for the most up-to-date financial data.
  • Online invoicing and payment services to help you get paid faster and improve cash flow.
  • Insightful reporting that leads to better business decisions.
  • Collaboration with unlimited users, all with a unique and secure login and access.

Need help with Xero?

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 by contacting your nearest Rosemary Bookkeeper for expert bookkeeping and software support today.

Teri’s Tips – How To Reconcile a Bank Statement on Xero

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Teri Cotta walks you through how to reconcile a bank statement on Xero.

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

Reconciling your bank account regularly using software like Xero means your records are accurate and up to date.

Reconciling your bank accounts means matching your bank statement lines to transactions in Xero, such as invoices, bills, or other payments.

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 reconcile a bank statement on Xero for some common payment types.

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.

How to start reconciling bank statements in Xero

From your ‘Business Bank Account”, click the reconcile button to begin.

Here, Xero suggests matches by comparing information in the statement line, such as the amount and contact name within the Xero transaction.

Suggested matches are highlighted in green.

Click okay to accept a match.

Xero reconciles the statement line and marks the invoice or bill as paid.

When there’s no suggested match, but you know the transaction is in Xero, you can search for it, click find and match and search for transactions by name, reference or amount.

How to reconcile multiple bills at once

You might have paid multiple bills in one go.

When we select these two bills, the total matches our statement line.

So, click reconcile.

How to reconcile incorrect payments

You might have invoiced a customer, but when you search for the transaction, you see the customer has paid the wrong amount.

You can easily account for these situations when you reconcile.

In the example on our YouTube channel, we recorded an overpayment.

In this scenario, click new transaction.

This is a receive money transaction as it’s money coming in.

Select overpayment and click “save transaction”.

The total of these two transactions matches the statement line.

So, click reconcile. Sometimes you might pay for something on the spot like office supplies or parking, so there isn’t a transaction in Xero.

Here, you create a new spend or receive money transaction to reconcile.

Enter the who, what and why and click okay.

Need 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.

How to set up your Xero Business Account – Teri’s Tips

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 Teri Cotta walks you through the Xero Business Account setup process.

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

Starting things is hard, and there is a lot of merit in that adage of nothing being scarier than a blank slate.

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 get started with Xero by setting up your Xero Business Account.

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.

  1. Getting Started – Confirm your details via email

To start, go to Xero.com and try it for free.

Enter your details, agree to the terms and conditions, and click “Get Started”.

Then, Xero should send you an email to confirm your details.

Go to your inbox, find the email, and click the link to get started.

  1. Activate your account with a password and details of your business

Next, enter a secure Password and then click activate your account.

Xero needs a few more details to complete the initial setup.

Begin by entering your organisation name, which Xero will display on your invoices.

Then, check that your country and currency are correct, as once you start the trial, you won’t be able to change this information.

Next, enter what your organisation does.

Start typing your industry and select the best option that applies to your business from a dropdown.

Xero will use this information to recommend connected apps for your business.

Set your financial year-end, which feeds into your reporting.

And finally, select your current accounting solution.

When you’re done, click “Start Trial”.

  1. Navigating the Xero Dashboard

Once you have completed the above, the first thing you’ll see is the Xero dashboard.

First, watch the introduction video to get an overview of the setup process.

As you start to use Xero, you’ll see more information on this dashboard—for example, invoices owed to you.

To manage your trial account, click on the organisation name and select my Xero.

There are a few things you can do here when you’re ready to convert your trial account. Click pay now and follow the steps to buy a subscription.

If you run multiple businesses, you can click “Add an Organisation” to create another Xero account for the same login.

Xero provides each user with their own demo company.

You can use this to practice new skills and try new features.

It consists of test data that resets automatically every 28 days.

It’s also handy to know that you can also manually reset it any time you want.

  1. Accessing Xero Support Features

If you have a question or need support, click the help icon and click any of the links provided.

For example, go to Xero Central to explore help articles.

Alternatively, enter a search criteria and press enter.

If you still can’t find what you’re looking for, scroll down and click “Contact Xero support”.

This takes you to Xero Central, where you can submit a query, enter detailed information, and click Send.

Xero guarantees that a support specialist will contact you within 24 hours.

And with that, you’re all done.

Need expert bookkeeping 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 will be able to 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.

Xero Help: How to create an invoice

Need help creating an invoice on Xero? We can help.

Xero can be a very useful tool when it comes to sorting out your finances but as with many of the accounting software options available, it has its shortcomings and should not be used as a substitute for a bookkeeper. One of these shortcomings is that they’re not always easy to use without help. That’s where we come in. Each of our Rosemary Bookkeeping business owners is trained on Xero and can provide you with any help you might need – including how to create an invoice.

One of the most crucial things to know about Xero is how to create an invoice. But this is not always easy if you don’t know how to. Luckily, our bookkeeping experts have put together this handy guide to walk you through creating an invoice on Xero, step by step.

https://www.youtube.com/watch?v=qKsKsuabKVs&t=3s

Where to start

Before you get to creating an invoice template on Xero, the first thing you need to do is check that your company details are all correct.

To do this, select the drop-down menu in the top right corner of the homepage by clicking on your company name and navigating to your settings, then Organisation Details. From here, you need to make sure that your name and logo are in the correct place under Basic Information. If it isn’t, don’t worry, you can simply upload it now using the links on this page, and by adding in details like your company address, website, and contact information yourself.

You will also need to ensure that the button at the very top of the page has the “On” option selected, to make sure that some of this information is included on your invoices.

Then, as you scroll down this page, you select which information you would like to include by ticking the boxes along the right-hand side. You can then save this information once you have confirmed that you have read the terms and conditions and community guidelines.

Creating a new invoice template

Now that you have confirmed that your company details are in order, you can go on to create a new invoice template.

To do this, use the drop-down menu in the top-left corner once again to access your settings. But this time, navigate over to the top of the right-hand column and click Invoice Settings.  Once here, you should be able to see the standard theme set up by Xero. You can make as many different themes as you like in Xero, so feel free to experiment with your options. For this tutorial, we are going to use the standard theme, but modify some of the finer details to fit our needs.

You can do this by selecting the Options tab in the top-right corner of the first menu box and clicking Edit. Doing this will open up a dialogue box titled Edit Branding Theme.

The first thing to come up is the name of your invoice, followed by its size. Normally, we would advise keeping this as the default A4 size, so that when it is saved as a PDF file, it remains A4. As a result, we would normally recommend leaving the margin sizes as they are as well.

However, we do recommend changing the information next to Approved Invoice title and Overdue Invoice title by changing both to simply say INVOICE. This is because the use of the title of “Tax Invoice” is an Americanism set as Xero’s default. In the UK, we are used to the title “Invoice”, so it’s better not to confuse matters and stick to what most people are familiar with. As for the rest of the information on the left-hand side, we are going to keep the default settings.

Moving over to the right, you will be able to see 10 checkboxes for various settings:

  • The first allows you to Show your tax number, which is important to include on your invoices.
  • You will also want to ensure that you have the second option of Show column headings selected as well, to allow quantities etc. to be easily identifiable.
  • The third option of Show item code can be checked in some circumstances, but you can leave it blank for now.
  • If your business involves supplying products in terms of numbers and price, then you may need to have the Show unit price & quantity box selected. But the choice is yours, depending on the setup of your business.
  • The Show payment advice cut-away is now quite old fashioned and antiquated as it would be the procedure for posting a check. Therefore, we advise leaving this box blank.
  • Leave the Show tax column on
  • Leave Show registered address on, as this is a required field
  • Leave Show logo selected
  • Have Hide discount deselected
  • Leave Show Contact Account Number deselected

You will then want to leave the default settings of Show tax subtotals by dropdown below at its default setting of tax rates and leave the default setting of Show currency conversion as on net amounts with tax totals. You can then leave each of the Payment Services dropdowns blank.

Then you will need to fill in the bank details that you want the payment to come out of in the Terms & Payment Advice (Invoice and Statement) box. This is the name of the bank, the sort code, and the account number. As well as the payment term – the date the payment is due. This serves as a reminder more than anything, as this is shown once the invoice is raised.

As a general rule of thumb, we advise also changing your logo alignment to Centre from the Logo Alignment column in the top-right corner if you have elected to display a logo on your invoices – which we also advise.

With that, your template is complete, and you can now Save it by clicking the button at the bottom of the dialogue box.

You can now Preview your invoice template from the Options dropdown menu, which shows you what your invoice will look like when displayed on both a computer and a mobile.

How to raise a new sales invoice

Now that your template is ready, click the Dashboard heading at the top of the page, and click New sales invoice under Invoices owed to you in the top right-hand dialogue box, which will now let you raise a new sales invoice. Congratulations, you have successfully generated your first invoice on Xero! This template can now be amended to fit any billing that you may need to send and can be a reference for you to come back to in generating different invoices.

Our bookkeeping experts know how difficult it is to run a small business and stay on top of your finances, and will be able to offer you expert support and advice wherever you need it most. At Rosemary Bookkeeping, we help you with the books, so you can get on with the important bits.

For more help on online accounting software like Xero or QuickBooks, or any other help with your bookkeeping, get in touch with us by finding your nearest Rosemary Bookkeeping business today.