Notes on Entering Purchase Bills into Xero

Importance of Entering Purchase Bills

• Entering purchase bills in Xero provides a complete view of finances.
• Helps in predicting and planning cash flow by knowing due dates and amounts owed.
• Identifying high-cost expenses becomes easier as the number of bills increases.
• Ensures timely payments, reducing the risk of missed bills.

Benefits of Using Xero for Bills

• Bill Status: Easily track if bills are paid or overdue.
• Batch Payments: Allows bundling multiple bills into a single payment file for efficiency.

Getting Started with Bill Entry

1. Navigate to Purchases Overview via Business > Purchases Overview.
   • View totals for bills, draft bills, bills awaiting payment, and overdue bills.
   • Includes a visual representation of upcoming payments.
   • Search function available for finding bills/purchase orders.

Creating a New Bill

• Click Plus New to raise a new bill.
• Enter Supplier’s Name: Choose from existing contacts or add a new one.
• Bill Date: Defaults to today but can be changed.
• Due Date: Use calendar or date entry shortcuts (e.g., +7 for 7 days later).
• Enter Bill Number in the reference field (if applicable).
• Choose item from saved products/services or fill in details manually.

Selecting Accounts

• Choose an account from the Chart of Accounts to categorize the transaction.
  • Common expense accounts include:
    • Motor vehicle expenses
    • Printing and stationery
    • Repairs and maintenance
    • Freight and courier
    • Insurance
• Ensure the total in Xero matches the received bill amount.

Completing and Approving Bills

• Option to Approve the bill based on user role; others may need to submit for approval.
• Upload documents (e.g., supplier bill) by clicking the paper symbol.

Using "Email to Bills" Feature

• Allows emailing PDF bills directly to Xero to create draft bills.
• Find unique bills email address under Business > Bills to Pay > Create Bill from Email.
• Forward bills to this email to create drafts automatically.
• Recommended to save the unique email address as a contact for convenience.

Paying Bills

• Use Batch Payments for bulk payments instead of individual payments.
• Navigate to Business > Bills to Pay > Awaiting Payment to view unpaid bills.
• Schedule Payments: Plan payments to manage cash flow effectively.
  • Select bills using the top checkbox for bulk action.
• Enter payment details and save suppliers' bank account details in Xero for ease.
• Download batch payment file to transfer funds to suppliers.
• Import the file into online banking for payment processing.

Further Learning

• For detailed instructions, access the supercharged help center via the question mark icon in Xero.