How to Use Xero

Getting started with Xero

After reading this guide, you'll be set up with Xero, ready to manage your small business’s accounting, bank reconciliations, and invoicing efficiently.

Step 1: Sign up and set up

1. Visit Xero's website.
2. Click on the “Free Trial” button located at the top right corner.
3. Fill in your email address and create a password, then click “Get Started.”
4. Enter your business details (name, type, and country) and continue.
5. Verify your email by clicking the link sent to your inbox.
6. Log in to your new account and complete any setup prompts.

Step 2: Your first invoice

1. From the Xero dashboard, click on the “Business” tab in the top menu.
2. Select “Invoices” from the dropdown.
3. Click the “New Invoice” button.
4. Fill in the customer details, invoice date, and due date.
5. Add line items for products or services by entering descriptions and amounts.
6. Once complete, click “Approve” to send the invoice or “Save as Draft” to finish later.

Step 3: Get better results

• Regularly check the “Dashboard” for an overview of your finances, including cash flow and outstanding invoices.
• Use the “Bank Accounts” feature to link your bank for automatic transaction imports.
• Set up recurring billing for regular customers by clicking the “Repeat” button when creating an invoice.

Pro tip

Make use of Xero's “Bank Reconciliation” feature weekly. It learns your categorisation patterns over time, making future reconciliations much quicker. Simply click on “Accounting” then “Bank Accounts” to start.

Common mistake to avoid

Avoid skipping the initial setup steps where you categorise your transactions. Proper categorisation from the start ensures accurate financial reporting and makes reconciliation easier.