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Why some San Diego businesses choose Xero
The center of Xero is its bank reconciliation screen. Each statement line waits for a match, which suits owners who want every line checked. Xero also handles foreign currency accounts on its higher plans. And Xero does not charge per user, which helps when a partner, an assistant and a CPA all need access.
Those features fit some local businesses well. An importer that buys from suppliers in Mexico and pays some bills in pesos can keep a foreign currency account. A startup with a co-founder abroad can give everyone access without buying extra seats.
Plan features change. Check Xero's current plan list for multi-currency and user limits.
What the monthly Xero work covers
- Bank statement lines matched, coded or flagged, never left in the reconcile queue
- Bank rules kept specific so Xero does not code a new vendor the wrong way
- Stripe, Shopify, Square or PayPal payouts split into sales, fees and refunds
- Tracking categories for locations, properties, contracts or departments
- Bills and invoices kept current, with aged receivables and payables you can trust
- Foreign currency gains and losses recorded if you hold non-dollar accounts
- A lock date set after each close so finished months stay finished
Tracking categories, put to work
Xero tracking categories tag each line with a location, project or department. Used well, they answer the questions owners ask most. A hotel and restaurant operator in Coronado can track by outlet: rooms, restaurant and events. A biotech company can track by program, which helps when grant or contract reporting needs costs by project. A general contractor in San Marcos can track by job.
Set up badly, tracking becomes noise. The bookkeeper keeps the list short and makes sure each line gets a value, so the reports add up.
Taking over a Xero file
- Invite as adviser You add the bookkeeper as a user with adviser access. You still own the subscription.
- Check the reconcile queue Unreconciled lines, old suspense balances and manual bank entries are reviewed first.
- Tidy setup Chart of accounts, tax rates, tracking categories and bank rules are cleaned before monthly work starts.
- Close monthly Each month is reconciled, reviewed and locked, with reports and a short note.
Xero errors that cause trouble later
| Error | Result |
|---|---|
| Statement lines marked reconciled using "create" when an invoice already existed | Income counted twice and receivables never cleared |
| Manual bank transactions entered beside the feed | Duplicates and a bank balance that does not match |
| Sales tax rates set on purchases that are not taxable | Wrong sales tax totals on reports |
| Tracking categories left blank on half the lines | Location or project reports that do not add up |
Switching between Xero and QuickBooks
If your file is in QuickBooks Online and you want to stay there, see QuickBooks bookkeeping. If you are thinking about a move in either direction, ask on the call. A move is easiest at a year end or quarter end, after the old file is reconciled.
Where we work
We keep books for businesses across the City of San Diego, North County, the South Bay and East County.
- Carlsbad
- Chula Vista
- Downtown San Diego
- El Cajon
- Encinitas
- Escondido
- La Mesa
- Oceanside
- San Diego
- San Marcos
- Vista
Questions
Do I need a specific Xero plan?
It depends on what you need, such as multi-currency or project tracking. Check Xero's current plans, and ask on the call which features you use.
Can my CPA see my Xero file?
Yes. You can invite your CPA as another user with adviser access.
Does Xero handle California sales tax?
Xero can track sales tax by rate. The bookkeeper sets the rates you use so the totals match what you report to the CDTFA.
Can you fix a Xero file that is behind?
Yes. Missing months are caught up from statements first. Then monthly work starts from a reconciled balance.