How to Do Bookkeeping in Xero

Quick summary

Xero bookkeeping lets you reconcile bank accounts, create and manage invoices, track bills to pay, and review all financial transactions through the Journal Report — all from one cloud-based accounting platform. This step-by-step walkthrough covers the exact navigation paths inside Xero to complete each core bookkeeping task efficiently.

Steps

1. Click Accounting in the top menu bar to get started.
2. Select Bank Accounts from the Accounting dropdown list.
3. Tap a specific bank account to import, reconcile, review, adjust, or manage transactions.
4. Navigate to the Business tab for payment requests and invoice management.
5. Select Invoices from the Business dropdown list.
6. Use the Invoices section to create and manage your invoices with the available options.
7. Return to the Business tab to manage expenses due.
8. Select Bills to Pay from the Business dropdown list.
9. Access the Bills to Pay section to add, pay, remove, and manage different bills.
10. Go back to the Accounting tab to view transaction records within your organisation.
11. Click Journal Report to open the full transaction log.
12. Review all financial transactions, add entries via manual journals, or let the system update them automatically.
13. Use all these tools together to complete your bookkeeping workflow in Xero.