This guide covers how to navigate and manage advanced organizational settings within Xero. You will learn how to customize financial layouts, tax settings, and user permissions to match your business requirements.
How do I access the Settings menu in Xero?
To get started with your configuration, you need to navigate to the organization name in the top left-hand corner of your screen. Click on the organization name to reveal the dropdown menu, and then select Settings. This will take you to the main settings page where you can manage all aspects of your Xero organization.
💡 Action Steps
Click on the organization name in the top left corner
Select Settings from the dropdown menu
How can I update my Organization Details?
Once you are in the settings area, click on Organization details. This is where you enter your basic information such as your display name, legal name, and your logo. You can also add your contact details, including your physical address and postal address, which will then appear on your invoices and documents that you send out to your customers.
💡 Action Steps
Click on Organization details
Upload a business logo
Enter the display name and legal name
Input physical and postal address information
Where do I manage my Financial Settings?
From the settings overview, select Financial Settings to manage your fiscal configurations. Here you can set your financial year end and choose your tax basis, whether that is cash or accrual. It is also where you enter your GST number and set your GST reporting frequency so that your tax obligations are calculated correctly within the system.
💡 Action Steps
Select Financial Settings
Set the Financial Year End date
Choose a Tax Basis
Enter the GST number
How do I invite new users to the organization?
To give other people access to your data, click on Users within the settings menu. From here, you can click the Invite a user button. You will need to enter their first name, last name, and their email address. You then select the level of access you want to give them, ranging from read-only to full advisor permissions, depending on what they need to do in the file.
💡 Action Steps
Click on Users
Click the Invite a user button
Enter the user's name and email address
Assign the appropriate permission level
How do I customize my Invoice Settings?
To change the look and feel of your invoices, go to Invoice Settings. Here you can create different invoice templates, also known as branding themes. You can click on New Branding Theme to create a custom layout or edit the Standard theme to change the margins, font, and what information is displayed to your clients on their bills.
💡 Action Steps
Navigate to Invoice Settings
Click New Branding Theme
Select Edit on the Standard theme to modify layout options
What are Tracking Categories and how do I set them up?
Tracking Categories allow you to see how different areas of your business are performing. To set these up, go to Advanced Settings and select Tracking Categories. You can add a category name, like 'Region' or 'Department', and then add options under that category. This allows you to tag transactions and run reports based on those specific tags.
💡 Action Steps
Go to Advanced Settings
Select Tracking Categories
Click Add Tracking Category
Enter category names and specific options
This guide covers how to manage your inventory by setting up products and categories within the Xero integration. Learn how to map items correctly to ensure your accounting data remains organized and accurate.
How do I access the products and services section?
To get started with your inventory management, you need to navigate to the business menu and select products and services. This is where you will see a full list of all the items you currently have set up in your system, including their trackable status and current stock levels.
💡 Action Steps
Click on the Business menu
Select Products and services
How do I create a new product?
When you need to add a new item, click the new item button. You will need to provide a unique item code and a name for the product. These details are essential for tracking the item across your invoices and bills. You can also decide at this stage if you want to track inventory for this specific item.
💡 Action Steps
Click the New item button
Enter a unique Item Code
Enter the Product Name
Toggle Track inventory if required
What is the process for setting up purchase details?
In the purchase section, you define how much you pay for the item and which account it should be coded to. Enter the unit price you usually pay and select the appropriate cost of goods sold or expense account from your chart of accounts. This ensures that when you create a purchase order, the correct financial data is captured automatically.
💡 Action Steps
Enter the Unit Price in the purchase section
Select the Purchase Account from the dropdown menu
Select the appropriate Tax Rate for purchases
How do I configure sales defaults for products?
Moving to the sales section, you should enter the price you intend to charge your customers. Select the relevant sales account, such as 'Sales' or 'Other Revenue,' to ensure your income is categorized correctly. Just like the purchase side, you'll need to set the tax rate that applies when selling this item to your customers.
💡 Action Steps
Enter the Sales Unit Price
Select the Sales Account
Confirm the Sales Tax Rate
How do I organize items using categories?
Categories are a great way to group similar products together for better reporting. To manage these, go into the search and filter options and look for the category settings. You can create a new category name and then assign individual products to that category so you can filter your inventory list more effectively.
💡 Action Steps
Open the Search and Filter menu
Select Manage Categories
Click Add Category and enter a name
Assign the category to specific products
What are the benefits of tracking inventory?
If you choose to track an item, the system will keep a running total of the quantity on hand. This means every time you approve a bill for a purchase, the stock count goes up, and every time you approve an invoice for a sale, the stock count goes down. This gives you a real-time view of what you have in the warehouse.
💡 Action Steps
Enable the Track inventory item checkbox
Select an Inventory Asset Account
Review the Quantity on Hand column in the product list
How do I edit existing product information?
If you need to change a price or update an account, simply click on the product from the main list. This opens the item details view where you can click edit. From here, you can modify any of the fields we've discussed, such as the description, the price, or the tax rates, and click save to apply the changes globally.
💡 Action Steps
Click on a product name from the list
Click the Edit button
Update the necessary fields
Click Save
How can I import products in bulk?
If you have a large list of products, you don't have to enter them one by one. You can use the import function to upload a CSV file. Download the template provided, fill in your product data following the format exactly, and then upload it back into the system to create or update multiple items at once.
💡 Action Steps
Click the Import button
Download the CSV template
Populate the template with product data
Upload the completed file
This video walks you through how to set up and manage payment plans within Xero. You will learn how to negotiate installments with customers and track these arrangements directly against their invoices.
How do I access payment plans in Xero?
To get started with payment plans, you need to navigate to the Business menu and select Invoices. From here, find the specific invoice that you have agreed a payment schedule for with your customer. You'll want to click into the invoice details to see the full breakdown of what is owed before you begin setting up the arrangement.
💡 Action Steps
Click on the Business menu
Select Invoices
Click on the specific invoice number
What is the process for setting up a new payment schedule?
Once you're inside the invoice, look for the option to add a payment plan. You can specify the frequency of the payments, whether that's weekly, fortnightly, or monthly. You then enter the amount for each installment. Xero will automatically calculate the remaining balance as you assign these amounts to ensure the total matches the invoice balance.
💡 Action Steps
Click Add Payment Plan
Select the payment frequency
Enter the installment amounts
How do I set the start date for the installments?
You need to choose the date that the first payment is expected. Click on the date picker and select the agreed-upon start date. Once you've set the first date, Xero will populate the subsequent dates based on the frequency you chose earlier. You can manually adjust individual dates if a specific holiday or weekend interferes with the plan.
💡 Action Steps
Click the date picker
Select the first payment date
Adjust subsequent dates if necessary
How can I track the progress of a payment plan?
After you save the payment plan, you will see a summary on the invoice page showing the installment schedule. As payments are reconciled against the bank feed, Xero matches them to these specific plan entries. You can see at a glance which installments are paid, which are pending, and if any have been missed or are overdue.
💡 Action Steps
View the installment schedule summary
Reconcile bank feed items against the plan
Check the status of pending installments
What should I do if a customer misses a payment?
If a customer fails to make a scheduled payment, the status for that specific installment will update to Overdue. You can then choose to contact the customer directly from the invoice view. If you need to renegotiate the terms, you can edit the existing plan or cancel it and start a new one to reflect the updated agreement.
💡 Action Steps
Identify Overdue installments
Click Edit to modify the plan
Cancel the plan if a new agreement is needed
How do I finalize or remove a payment plan?
When all installments are paid, the invoice will mark itself as fully paid and the payment plan will be completed. If for some reason you need to remove the plan before it is finished—perhaps the customer decided to pay the full balance at once—you can simply click the Remove option on the payment plan header to clear the schedule and return to a standard invoice balance.
💡 Action Steps
Confirm the final payment is reconciled
Click Remove on the payment plan header if clearing the schedule
This guide covers how to manage and apply tax rates within Xero to ensure your financial records are accurate and compliant. You will learn how to view existing rates, create custom tax components, and assign them to your accounts.
Where do I find the Tax Rates settings in Xero?
To get started with your tax settings, you need to navigate to the Organization menu. Click on your Organization name in the top left corner, then select Settings and choose Advanced settings. From there, you will find the Tax Rates link under the Tax section. This page displays all the tax rates currently available in your Xero organization, including the default rates provided based on your region.
💡 Action Steps
Click on the Organization name
Select Settings
Click on Advanced settings
Select Tax Rates
How do I understand the default tax rates?
When you look at the Tax Rates screen, you'll see a list of standard rates like GST on Income, GST on Expenses, and GST-free. These are the system-generated defaults. You can see the display name, the actual tax percentage, and whether the rate is currently active. These rates are automatically applied to your default Chart of Accounts to make coding your transactions much faster.
💡 Action Steps
Review the list of default tax rates
Check the tax percentage column
Verify the status of the rates
How do I create a new custom tax rate?
If you have a specific requirement that isn't covered by the defaults, you can create a new one. Click the New Tax Rate button at the top of the page. You'll need to enter a Tax Rate Name that will be easy for you to identify later. Then, you'll enter the details for the tax component, including the name and the percentage. You can even add multiple components to a single tax rate if your local regulations require it.
💡 Action Steps
Click the New Tax Rate button
Enter a Tax Rate Name
Input the Tax Component name
Enter the Tax Component percentage
How do I edit an existing tax rate?
If you need to change the name of a tax rate or update a rate that you created manually, you can simply click on the name of the rate from the main list. This opens the edit screen where you can adjust the label or the percentage values. Keep in mind that system-default rates may have restrictions on what can be changed to ensure your reporting remains compliant with local tax laws.
💡 Action Steps
Click on an existing Tax Rate name
Modify the Name or Percentage fields
Click Save
How do I delete or archive a tax rate?
If you find that you have tax rates you no longer use, you can clean up your list. You can't delete a rate that has been used in a transaction, but you can archive it. To do this, select the checkbox next to the rate you want to remove and click the Archive button. This removes it from your selection dropdowns when you are entering invoices or bills, but keeps the historical data intact for your reports.
💡 Action Steps
Select the checkbox next to the tax rate
Click the Archive button
How do I assign tax rates to my Chart of Accounts?
To make sure the right tax rate is used automatically, you should assign them to your accounts. Go to the Chart of Accounts and click on a specific account code. In the Tax Rate field, select the appropriate rate from the dropdown menu. Now, every time you use this account in a transaction, Xero will default to this tax rate, saving you time and reducing errors.
💡 Action Steps
Navigate to the Chart of Accounts
Click on a specific account
Select a rate from the Tax Rate dropdown
Save the changes to the account