Xero Setup and Configuration Flashcards

A Xero advisor is setting up a client and needs to restrict a bookkeeper from deleting invoices. Which feature enables this?

Answer: User roles and permissions

Xero's user roles and permissions allow administrators to control what actions each user can perform, including restricting invoice deletion.

What happens when you archive an account in Xero's chart of accounts?

Answer: The account is hidden from new transaction entry but historical data is retained

Archiving an account hides it from future transaction entry while preserving all historical data associated with it.

When a Xero client operates as both a customer and a supplier, how should they be set up in contacts?

Answer: A single contact can be flagged as both a customer and a supplier

In Xero, a single contact record can be used for both customer (sales) and supplier (purchase) transactions simultaneously.

Which Xero setting enables you to automatically apply a default account code to a specific supplier's bills?

Answer: Contact defaults on the supplier's contact record

In Xero, you can set a default account code on a contact record so it pre-populates on new bills from that supplier.

In Xero, what is the function of 'repeating invoices'?

Answer: Create invoices on a scheduled basis for recurring billing

Repeating invoices in Xero automatically generate and optionally send invoices on a set schedule, ideal for subscription or retainer billing.

When setting up Xero for a nonprofit organization in the US, which account type is most appropriate for tracking grant funding received?

Answer: Revenue

Grant funding received is typically classified as Revenue (or Income) in Xero, as it represents funds earned by the organization.

A client migrating to Xero wants to enter outstanding customer invoices from before the go-live date. What is the recommended approach?

Answer: Enter each invoice individually with original dates

Best practice is to enter each outstanding invoice individually with its original date so aged receivables reports are accurate in Xero.