When we’re doing Xero bookkeeping cleanup, we focus on five key areas:
- Reviewing financial reports – to see how the company’s income, expenses, and overall financial health are tracking.
- Reviewing the chart of accounts – to ensure accounts are properly categorized and the foundation of your bookkeeping is accurate.
- Reviewing bank reconciliations – making sure all bank and credit card transactions are correctly matched in Xero.
- Reviewing bank rules – because incorrect rules can misclassify transactions and create ongoing issues.
- Reviewing accounts receivable and accounts payable – to confirm invoices, payments, and vendor bills are properly recorded and up to date.
Once we review all five areas, we get a clear picture of where the bookkeeping stands and can implement the right solutions. If reconciliations haven’t been done, we reconcile the accounts. If the chart of accounts is incorrect, we fix it. If reporting is off, we correct it. If bank rules are misapplied, we adjust them. And if AR or AP is out of date, we close open invoices and bills to ensure everything is accurate.
Timely bookkeeping is key to tax savings. Many business owners try to clean up the books after the fact, but that approach doesn’t help the company grow or reduce taxes. Staying on top of your bookkeeping ensures better decisions, smoother operations, and potentially significant tax savings.