Xero Bookkeeping & Accounting - 2026 Complete Masterclass

Learn how to record owner deposits as receive money in Xero, post to petty cash, and review the impact on balance sheet, owners' equity, and the profit and loss.

Learn how to upload bank statements in zero, manually via csv or through bank feed, and reconcile transactions to align the statement balance with your records.

Verify the petty cash balance in Xero, count the cash, and mark as reconciled to keep records accurate; if mismatches occur, reconcile without a bank statement.

Record income through invoices in the sales module, understand accounts receivable, and compare cash and accrual accounting, seeing impacts on balance sheet and profit and loss.

Record payments against invoices in Xero, update receivables and bank balances, and see the impact on balance sheet and income under cash basis, with journal entries.

Customize and send invoices from Xero by uploading your logo and details, and printing or emailing the invoice to customers, with customizable themes and settings.

Learn to email invoices from Xero using built-in templates, personalize subject and text, preview the email and PDF attachment, and manage sender and reply-to settings.

Raise and manage an invoice for Gary Smith, record a £100 payment, generate and email a receipt, and review the dashboard to track awaiting payments.

Learn to raise and send a credit note in Xero after invoicing, apply full or partial credit to invoices, and share the credit note with the customer.

Perform month-end receivables reconciliation to verify invoices, payments, and credit notes against balances, mirroring bank reconciliation for accuracy. Use Xero to generate, print, and email customer statements in bulk.

Record expenses as bills to create payables under accrual accounting in Xero, attaching the bill and approving the entry. See the impact on balance sheet and profit and loss.

Record a new bill by entering vendor, date, due date, description, quantity, and price, then select the software expenses account and approve. Post a partial payment of 50 with date.

Record a supplier credit note for a partial return and allocate it to the original bill. This reduces the balance from £150 to £110, showing the remaining due.

Learn how to upload a bank statement, reconcile payments against bills in Xero, and handle cases where payments were or were not recorded using find and match.

Discover how to manage products and inventory in Xero, creating service items without stock tracking and inventory items with valuation and cost of goods sold, using a dental exam example.

Learn how to add your first tracked inventory item in Xero, set the inventory and cost of goods sold accounts, and record purchases and balance sheet impacts with detailed reports.

Record a new invoice for a tracked inventory item and watch reports update, including balance sheet and profit and loss with automatic cost of goods sold and increased receivables.

Import tracked inventory items into Xero using the csv template. Fill in item codes, names, descriptions, and accounts (inventory asset 630, cogs 310) and upload to add nine items.

Record a new inventory purchase in Xero by creating a bill for Euro Dental, adding ten units, and updating the balance sheet and accounts payable with purchases.

Record a 50-unit return of teeth whitening kits via a credit note in bills to pay, allocate credit to original bill, and update inventory balances and the inventory detail report.

Explain how Xero uses the average cost method for tracked inventory, with FIFO/LIFO unavailable, using a 100 and 160 purchase to derive 130 COGS and inventory value.

Record fixed asset purchases, set start dates and depreciation methods (straight line or reducing balance), manage asset accounts, and determine gains or losses on disposal in zero.

Upgrade your zero access to advisor, set up the fixed asset module, and define a dental equipment asset type with office equipment accounts for straight-line depreciation over five years.

Register the fixed asset in the fixed asset module from draft to registered, configuring asset type, depreciation start date, straight-line method, and residual value with proper accounts.

Run straight-line depreciation for a fixed asset, calculating 133.33 monthly depreciation from a 10,000 purchase with 2,000 residual value, and review its impact on the profit and loss statement.

Learn how to dispose of a fixed asset in Xero, calculate sale loss against cost and depreciation, and use a disposal proceeds control account with bank transfer steps.

Configure Xero sales tax by selecting your VAT scheme, filing frequency, and VAT number, then view VAT reports like UK VAT return and VAT reconciliation, and apply tax on invoices.

Apply VAT on sales by using a sales invoice or receive money, set VAT rates per item, and review VAT returns and related reports.

Explain how invoicing with VAT under the accrual scheme creates VAT due and affects the VAT return, while payments remove the receivable; contrast with the cash scheme.

Explore how VAT on purchases works for businesses, why expenses for business use are recoverable for registered sellers, and how to distinguish business versus personal expenses for reclaiming VAT.

Record and reconcile VAT on expenses by creating a bill, marking the price exclusive of VAT, applying 20% VAT, and netting recoverable VAT against payables in the VAT return.

Learn to record VAT on receive money and spend money using correct VAT rates and inclusive/exclusive options, and generate VAT returns from bank statements.

Record VAT on fixed asset purchases like other expenses, but verify your country's rules; in the UK, reclaim VAT only if the bill totals £2,000 or more.

Learn to add a new VAT rate in Xero by navigating to advanced settings, creating a 10% special rate, and applying it to sales transactions.

Xero guides you through the US sales tax landscape with auto sales tax based on seller and buyer locations, product type, and Avalara accuracy; note most purchase taxes are non-recoverable.

Learn how detailed categorization and location tracking in Xero yield meaningful financial reports with filtered insights into income, expenses, assets, and custom fields.

Set up tracking categories in Xero and assign city options like London and Leeds to invoices, bills, and expenses, enabling city-specific income, expenses tracking, and reporting.

Explore multi-currency accounting in Xero, covering when to apply it, how to set up multi-currency, handling foreign exchange gains and losses, and invoicing in local currencies.

Set up multicurrency in Xero by configuring the home currency, adding USD and INR, and using xe.com exchange rates to invoice and record bills.

Learn how to raise a USD foreign currency invoice in Xero, view the GBP equivalent, understand reporting in the home currency, including balance sheet and P&L impacts and recording payments.

Learn how foreign currency receivables convert to GBP in Xero, and how unrealized exchange gains and losses appear in the balance sheet and profit and loss.

Record the payment of the 50,000 USD invoice when the bank converts funds to GBP, then enter the exchange rate to reflect the paid amount.

Create foreign currency bank accounts in Xero, enable foreign currency settings, select USD, name the account (for example HSBC USD), and record transfers while customizing the dashboard.

Record a $500 receive money into the US dollar account from Smith on March 1, and show how it affects the pnl and bank revaluation due to exchange rate.