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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Keeping track of receivables in XERO

Written by Alliott NZ Chartered Accountants Auckland on May 9th, 2016.      0 comments

Once you’ve added an invoice to XERO it is easy to keep track of who you need to pay, who needs to pay you and when.

paid-655Once the invoice is loaded to XERO it will go to the drafts folder, which is handy for giving you a last minute check – dates are important to double-check if you want to use XERO for debtor follow-ups.

You can change the due date on any invoice, simply by editing the bill.

The bills that are overdue show up in bright red, which makes them easy to spot and serves as a reminder until they are paid. 

A good idea is to sort all invoices by due date at a regular interval (here at Alliotts we do a debtors follow up once a week). This means you can see if there are any bills that haven’t been paid and how overdue they are.

You can then go into your XERO settings and set up an email reminder to be sent to your customers when their invoices are overdue.

You can change the amount of days after an invoice is overdue that the reminder will be sent.

Remember to set a minimum invoice amount to send a reminder. For example, if a customer owes you $10 and your reminder limit is $50 then they won’t receive a reminder. 

The reminder will also attach a PDF copy of the invoice, and you can set up a specific email address for all replies to be sent to. 

Once a bill has been paid, it is very easy to reconcile it in XERO.

Simply go to the account that the money was paid into/out of. Each transaction should automatically match up to the correct invoice otherwise you can easily search through invoices waiting to be paid and manually match it yourself.

Then it’s as simple as clicking OK, your payment is reconciled and the invoice is marked as paid.

Contact Alliotts in Auckland now for a free trial and to speak to one of our Xero certified advisors about how to get the most out of Xero for your business.
 

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