Xero Bookkeeping: 15 Frequently Asked Questions Answered

As a small business owner, you first-hand know how important bookkeeping is to keep your finances in order. Xero is one of the most popular accounting software in Europe and around the globe. However, some people are uncertain about where to get started and those who have started have countless questions to be answered. In this post, we will attempt to answer the most common Xero bookkeeping questions. 

Xero bookkeeping questions and answers help you better understand how Xero works and assist you to optimize your Xero workflow.

Is Xero easy to work with?

Xero is easy, user-friendly, intuitive and adaptive. Xero is quick and convenient too. But like all other software, you will have to have your head around it to get used to it. 

Does Xero’s free trial include access to all the features?

You can access all of Xero’s powerful features like Xero Payroll, Xero Projects and Xero Expenses . You can ensure that you know every nook and corner of the application before you buy it. 

But you can’t access your bank feeds in the free trial if your bank charges you for connecting bank feeds to Xero. 

Do I need an accountant to use Xero?

You don’t need an accountant to navigate you through the application. Xero is simple and user friendly to use. However, we would recommend you to have an accountant by your side to keep your finances straight and to keep you informed about the past, current and future financial trends of your small business. Xero has a portal in which you can find a pro advisor. 

How to set up my organisation details?

If you own a limited company, you will have a registered office address and a unique registration number. Just navigate to the Setting and go to Organisation Settings. Here you can enter and edit your business’s contact details. You can input your Display name, Legal / Trading name, Email, Registration Number, Organisation Description, Physical address, Registered address, Organisation type, Phone and fax numbers, Logo and Website.

Does Xero provide online set-up assistance?

Of course, Xero offers 24 hours support all days of the year. So, if you are stuck in the middle, or yet to set up your organisation in Xero, or fumbling with the reconciliation screen, the Xero support crew has seen it all. Just throw them a hi and you will be taken care of.

Can I import and export data in and out of Xero?

You cannot import your invoices, chart of accounts, bills or journals into Xero in bulk using third party applications. You can use Xero authorised data migration tools like SaasAnt Transactions to bulk import, export and delete your transactions in Xero with just a click of a button.

Does Xero offer annual subscription plans?

No, as of now, Xero does not provide any annual subscriptions. Monthly subscriptions are simple and affordable. You will have to pay in advance on a monthly basis to avail of Xero services for your organisation.  However, you will receive an invoice at the end of your monthly billing period. 

Can I do year-end accounts in Xero?

You need not necessarily do a year-end close or journal roll up to keep your records straight and organised in Xero. However, you can do year-end accounts in Xero for your convenience. You can reconcile your accounts and give access to your accountant to add journal entries or make necessary adjustments. Once you are done with your ear end accounts, you can lock dates to prevent further changes to them. 

Does Xero have a desktop version?

No. Xero is on the cloud and you cannot use it offline in a desktop version. All you need to use Xero is an active internet connection and a supported browser. Xero releases automatic upgrades and you always get to use the up-to-date version of Xero. You don’t have to pay for the upgrades and there is no business downtime as well. 

Does Xero integrate with other applications?

Xero has an ecosystem that accommodates 1000+ applications in its App Store. You can integrate with add-ons and other third-party applications for data migration, CRM systems, payroll management, time tracking and much more to optimize your Xero workflow. 

What happens to my data if I cancel my subscription?

If you cancel your paid subscription plan, Xero will retain your data for the next seven years, according to Xero’s data retention policy. The retained data will be held with confidenciatialty leaving access to no one. You can recover your data upto seven years upon re-subscription to a paid plan. 

However, you can request Xero to delete your data permanently, if you prefer it that way. 

What happens to my data if you cancel your free trial?

Xero does not hold on to your data when you cancel your free trial subscription. Once you cancel your trial, your data will be permanently deleted. You can’t reactivate your data upon buying a paid plan later. 

So, we strongly recommend you to export your data before you cancel the subscription. You can use Xero authorized third party data migration tools like SaasAnt Transactions to export your Xero files in Excel, CSV, IIF and text file formats. It is suggestive to export your data and have a local offline copy of your records at hand, even when you are running on a paid plan. 

Can I have more than one company file in Xero?

You can have multiple company files under the same administrative email address. You just need to activate a separate subscription plan for each company. 

Can I give access to other employees?

You can invite your employees once you have set up your business in Xero. You can also limit the user access for each employee, giving access to areas just enough for them to do their work. And your Xero company can be accessed by any number of users simultaneously. 

What is the Xero Partner program?

It is a program for accountants and bookkeepers in practice. The program is free of cost, you just need to fill in a form and go through training sessions to become a recognized Xero Partner. There are a handful of benefits for Xero partners including free Xero subscription to Xero Projects, Xero Payroll and Xero Expenses, free conversion tools, online learning, Xero marketing materials and special accountant’s access. 

Does Xero have discount for not-for-profits?

Yes. A registered non-profit charity, trust or society will have a 25% discount on Xero subscription. Xero will release the discount only after the organization purchases a plan and Xero verifies the non-profit status of the organization.