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xero chart of accounts template

Organize operating expenses to reflect owner preferences and match budgeting level of detail. Once created, reports within Joiin can then be run month-on-month at the click of a button. For example, a company that has taken out a business loan will have interest expense. On the other hand, a company that doesn’t have any loan won’t have any interest to pay. Nearside’s free Excel bookkeeping template offers all that, thus providing a simple yet effective bookkeeping system that you can implement in your small business.

The online version of Excel is completely free, which may help you save on business costs. As a business, you can decide to structure your chart of accounts so that revenue and expenses are categorized according to business function, product line, or company division. How you do this is up to you as different strategies will be more useful for different business owners. Then, sales and payments transactions will be automatically mapped to the corresponding sub-account. In order to get the best breakdown of transactions occurring, you’ll want to make sure you’ve set up relevant sub-accounts in your chart of accounts. For example, a brick-and-mortar store might not deal with shipping costs or revenue from charging shipping fees. However, as an e-commerce business, it would be useful for you to see these transactions distinguished from other costs or revenue from goods sold.


You can choose a chart of accounts template when you onboard clients in Xero. You can then select a template from the drop-down list when you’re filling in the client’s details. If you are unsure what to use, there’s a link beside the drop-down list to the chart of accounts library so you can easily review the accounts in each template. Importantly, the templates are pre-mapped to Xero report codes so you can be confident that standard Xero reports will be correct straight away. If you do need to add or remove accounts or report codes from an individual client’s chart of accounts, that remains easy to do from within their Xero account settings.

What should the chart of accounts include?

A company's Chart of Accounts is a list of all Asset, Liability, Equity, Revenue, and Expense accounts included in the company's General Ledger. The number of accounts included in the chart of accounts varies depending on the size of the company.

If you want to take your company and yourself to the next level, thenclick here to learn more about the premier financial leadership development platform. Access your Strategic Pricing Model Execution Plan in SCFO Lab. Your computer is prone to malware attacks and phishing, and you want a more reliable and secure way to maintain your accounting records. Your transactions are becoming too many that manually entering them is time-consuming. Giving accountants unrivalled analysis of Xero & QuickBooks clients for simple, scalable and profitable advisory services. Check out the Xero new reports section to learn the list of new reports.

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This Xero software review has analyzed the Xero software in detail and has concluded that it’s a good value for your money. The ease of use is fantastic; even non-tech-savvy users can learn how the software works with the comprehensive guides and webinars Xero offers. For example, Meals Expense might be a standalone account or it might be spread across the categories the meals relate to, such as Marketing, Conferences, or Travel.

xero chart of accounts template

You basically categorize every transaction as either income/profit or expense/loss . A good Excel bookkeeping template should have a chart of accounts, transactions and an income statement. For example, if you are a theatre company, you may have one account for recording ticket sales, another for snack sales, and another for merchandise sales. By tracking revenue and expenses against these different accounts, you can montior the success of different business areas over time. A unique account that is useful for e-commerce businesses is a ‘checking account’, ‘bank’ or ‘payment balance’ account. Essentially, this account tracks the amount of money that is still held by your e-commerce platform. Xero lets you track expenses, categorize them, convert them to invoices, and bill them to your customers.

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There are three monthly plans so you can start small and scale up to a more robust plan as your business grows. Some of the most common reasons why users love the Xero software is the software’s ease of use. In many reviews of Xero, users praise the large selection of features, especially the reporting and automation features. Xero might not have a free plan, but it lets you explore the software for free with its 30-day free trial. There’s no credit card required, and you’ll get access to the best features. For instance, you can easily customize Xero’s default chart of accounts or import an already existing chart of accounts.

Contact Toptal if you would like assistance taking this simple but incredibly impactful step raising your organization to the next level. An effective chart of accounts structure directly or indirectly drives virtually all financial reporting. Yet, many organizations ignore this foundational concept and limp along with unmet expectations. For organizational elegance, keep numbers and descriptions consistent. Align direct cost account numbers with the corresponding sales account numbers.

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Above we introduced the categories of reports according to Xero. Xero users, however, may have their own vision or way of grouping reports. For example, you may want a separate category for Project reports. Download the extensive 54-page guide on how to spend less than an hour on your accounting and bookkeeping every month. To see a working example of the entire hierarchy, click the button to download the chart of accounts template that we actually use as a starting point on our engagements. Use the mechanics below to keep the chart of accounts organized.

  • That way if actual supplies and repairs total $2,700 for the month, you can see at a glance that indirect cost was overapplied to projects ($3,000 applied, compared to $2,700 actual).
  • If that’s not enough, Xero also integrates with Zapier, connecting the software with hundreds of additional add-ons.
  • In the future, you’ll be able to add and customise your own templates – we’ll keep you posted on those features as well.
  • Xero accounting software is remarkable for its scalable nature, making it a good choice for both simple and more complex accounting needs.
  • Create this hierarchy by using accounts and sub-accounts, also referred to as parent-child accounts.

It’s always good to save a copy of your current Chart of Accounts before editing with this option. This will ensure you have a neat copy if you accidentally make any edits you are not happy with. You’ll want to use this when xero chart of accounts template starting a new Xero file if you already have a Chart of Accounts ready to go. Hit “Import” and choose the .csv file from the “Browse” button. You can also download a template to build a Chart of Accounts from scratch.

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Now you can onboard faster and more accurately with the new chart of accounts templates in Xero HQ. This means you can now spend more time advising your clients during this difficult period. A company’s chart of accounts can also involve the outline of the departments that the company has. For example, if the company has around eight departments like production, marketing, human resources, accounts, they can include it in the chart of accounts. Especially if the departments are responsible for their own expenses like salaries, supplies, phones, etc. Therefore, each department will have multiple phone expense accounts, salary accounts, and supply accounts.

Xero, or any other accounting software, in the cloud or local, does not do the bookkeeping, or the accounting, for you. You will need the relevant knowledge to use it in the right way. The best accounting software is down to a mix of business application and personal preference. It’s worth exploring Xero alternatives and getting a good sense of the competition. One of the main Xero limitations is that payroll in Xero works by integrating the software with Gusto, which is one of the most competent and comprehensive payroll management software. However, the integration comes as an add-on, starting at $40 per month, plus $6 per month per person. The Client Portal is where your clients can view and manage all their transactions.