Xero Bookkeeping: Record a Business Expense (Bill)
Author: Duncan Warnock CPA | March, 2016
Small Business Bookkeeping of expenses is made so much easier when using Cloud Accounting software solution Xero. At MAS Tax Accountants Maribyrnong we love helping local businesses enjoy the efficiencies of cloud accounting solutions.
You can do your business bookkeeping in Xero anywhere in the world with internet access.
Scenario: So you are running a business and have just received a bill for the stationary you have purchased but have not yet paid for.
- The stationary purchase is $1,100 GST inclusive with GST amount of $100.00 from supplier Simones Stationary
- Invoice for Bill is dated 23/3/2016 and bill due date is 31/3/2016
- Purchase is for 100 stationary notebooks at a price of $11 each including GST.
- Your business has not previously recorded this expense transaction in Xero
- Your business has not previously paid for this expense transaction in Xero
- Your business is registered for GST.
Xero Bookkeeping: Record a Business Expense (Bill):
Xero navigation steps are:
1.Log in to Xero
2.Select menu path: Accounts > Purchases
3.Click on the ‘New’ button
4.Click on the ‘Bill’ button to display the ‘NEW BILL’ screen
5. Enter Bill details
|Xero field||Suggested data value to enter|
|Amounts are||Tax Inclusive|
|Date||23 Mar 2016|
|Due Date||31 Mar 2016|
|Account||Printing & Stationary|
|Tax Rate||GST on Expenses|
6. Check that the info you have entered into the Xero New Bill screen is consistent with the information recorded on the actual bill. Double check that the Bill Total and GST Amount is correct. Amend if required.
7.Click the green ‘APPROVE’ button to approve the Bill creation in Xero
8. ‘Bill Approved’ confirmation will be displayed to confirm that the bill has been successfully created in Xero.
- Make sure that the GST Tax Code and GST Amount is correct. It is easy to get this wrong!
- Upon bill creation as per above steps the newly created bill will now appear in the Xero Report 'Aged Payables'
- User may attach a scanned copy of the bill via the attach icon during bill creation or via the edit bill option.Your business should scan your business expenses and either store them in your cloud accounting solution or alternate cloud data storage solution
Call MAS Tax Accountants Maribyrnong today for further help with setting up or using Xero or an alternative accounting software solution. Contact us by any of the following options: Head Office Phone: 1300 627 829, call Duncan's mobile: 0402 210 614.or email Duncan Warnock CPA at firstname.lastname@example.org Alternatively, submit your details via our Contact Us page.