Xero Setup and Configuration Flashcards

In Xero's bank reconciliation, what does 'Create' allow you to do when matching a bank statement line?

Answer: Create a new transaction (invoice, bill, or spend/receive money) directly from the reconciliation screen

The 'Create' option on the bank reconciliation screen allows you to generate a new transaction directly without leaving reconciliation.

When setting up a Xero organization's opening balances, what date should the conversion balances be effective from?

Answer: The day before the Xero start date (conversion date)

Conversion balances in Xero should be dated the day before the conversion date so that the opening balances appear correctly at the start of your Xero records.

A Xero advisor wants to ensure that all purchase invoices over $5,000 require approval before payment. Which Xero feature supports this workflow?

Answer: Awaiting Approval status on bills

Bills can be saved in 'Awaiting Approval' status in Xero, requiring an authorized user to approve them before they can be paid.

Which of the following user roles in Xero has access to payroll functions but NOT to the chart of accounts?

Answer: Payroll Only

The 'Payroll Only' role in Xero grants access to payroll features without providing access to accounting or chart of accounts settings.

When configuring Xero's bank rules, what is the 'conditions' section used for?

Answer: Defining criteria (such as transaction description or amount) that trigger the rule

Conditions in a Xero bank rule define the matching criteria — like keywords in the description or amount ranges — that determine when the rule fires.

A Xero organization wants to use Projects to track profitability by client engagement. What must be done before time and expenses can be logged to a project?

Answer: Enable Projects in the Xero subscription and create a project record

Xero Projects is a feature that must be enabled in the subscription, and then a specific project record must be created before logging time or costs.

In Xero, which report should an advisor run immediately after entering conversion balances to verify accuracy?

Answer: Balance Sheet

The Balance Sheet should be run after entering conversion balances to confirm that assets, liabilities, and equity match the prior system's closing position.