Doing your year-end in Xero
We’ve been busy lately working on the year-end processes that accountants will need to run in Xero. Today we’ve released two important parts of this to help you and your accountant get underway with your year-end accounts.
You and your accountant now have better management of manual journals in Xero to make adjustments. The improved manual journal section allows you to:
- View and search manual journals
- Save an incomplete journal as a draft
- Void, copy and reverse a manual journal
- Apply tracking to each line of a manual journal
Handling those unusual payments
You can now pay an invoice or expense claim directly to or from any account, such as a shareholder loan, drawings or a suspense account. This allows you to properly handle shareholder transactions and other payments, such as prepayments from customers or contra arrangements.
When you make these payments, Xero will take care of any tax implications. You can nominate any account to accept payments by adding or editing the account in your Chart of Accounts.
Once you’ve got your year-end accounts in order, the next step is to create your financial statements. Soon we will be updating our annual report to provide more options and also to allow you to customise the layout of your profit and loss and balance sheet. If you plan to use another system for producing reports, we recommend your accountant does your year-end adjustments within Xero so that your data in Xero is always up to date.
Closing off the year
Xero doesn’t have a year-end rollup process, so the final step to closing a financial year is lock your accounts. This is done from the organisation settings screen. See our guide on the accounting behind Xero for more details.