Xero

How to Set Up Xero

1. Set up a new Xero account for historical data.
• Use the value creation template found at https://www.notion.so/Set-up-new-Xero-account-for-historical-data-848b6eb6c9eb406d84d8682df7e37d7f.
2. Finalize month-end in the existing accounting system.
• Use the value creation template found at https://www.notion.so/Finalise-month-end-in-existing-accounting-system-4e0a13e3bb8c4d8d91981bf12004196a.
3. Backup data in the existing accounting system.
• Use the value creation template found at https://www.notion.so/Backup-data-in-existing-accounting-system-c64bb1fa9f6b4f12b273ce8b39c5a3dd.
4. Engage accountants to begin the migration process (e.g. Movemybooks).
• Use the value creation template found at https://www.notion.so/Engage-accountants-to-begin-the-migration-process-e-g-Movemybooks-35d78eb1058c407582c9e1a832202a25.
5. Cross-check migrated data in Xero and data in the existing accounting system to ensure it matches.
• Use the value creation template found at https://www.notion.so/Cross-check-migrated-data-in-Xero-and-data-in-the-existing-accounting-system-to-ensure-it-matches-9ff1cb53b66b4a98a2198688bd5a338a.
6. Decommission existing accounting system.
• Use the value creation template found at https://www.notion.so/Decommission-existing-accounting-system-6b292c64aa614fd8b912b9df85c41759.
7. Backup historical data from existing accounting system to Xero.
• Use the value creation template found at https://www.notion.so/Backup-historical-data-from-existing-accounting-system-to-Xero-3a948e29106949a2ac862c0063eef3f7.
8. Migrate and setup Accounting-Xero.
• Use the value creation template found at https://www.notion.so/Migrate-Setup-Accounting-Xero-70c938e774004e9397cb0cf83f28bb4e.
9. Finalize YE accounts in existing accounting system.
• Use the value creation template found at https://www.notion.so/Finalise-YE-accounts-in-existing-accounting-system-706720ce20be49f3aa7cf101ddd5083f.
10. Extract aged debtors and aged creditors from existing accounting system.
• Use the value creation template found at https://www.notion.so/Extract-aged-debtors-and-aged-creditors-from-existing-accounting-system-6be7cbe8fb04449593cc9b3e9aad802b.
11. Set up Chart of Accounts.
• Use the value creation template found at https://www.notion.so/Set-up-Chart-of-Accounts-00d5e2a1398147719ac4424285d44b77.
12. Input Conversion Balances into Xero.
• Use the value creation template found at https://www.notion.so/Input-Conversation-Balances-into-Xero-01638c1a609b4fa3b473f752d937dc5f.
13. Upload backup aged debtors and aged creditors to finalize the conversion balances.
• Use the value creation template found at https://www.notion.so/Upload-backup-aged-debtors-and-aged-creditors-to-finalise-the-conversion-balances-06d95bd26c5b46ea98c3fb3f9a4ba103.
14. Train finance team and staff on using Xero.
• Use the value creation template found at https://www.notion.so/Train-finance-team-and-staff-on-using-Xero-6fd365080bf042648a6e37410d044f7c.

Most important reports for Xero

It is important to regularly review the following reports:

• Trial balance: A summary of all the accounts in the general ledger and their balances. This report is useful for ensuring that all transactions have been recorded correctly.
• Aged debtors and aged creditors: These reports show how much money is owed to the business by customers and how much the business owes to suppliers. Keeping track of these amounts can help identify potential cash flow issues.
• Bank reconciliation: This report compares the business's bank statements to its accounting records, ensuring that all transactions have been recorded accurately.
• Profit and loss: This report shows the business's income and expenses over a specific period of time, helping to identify areas where expenses can be reduced and revenue can be increased.
• Balance sheet: This report shows the business's assets, liabilities, and equity at a specific point in time, providing an overview of the business's financial position.

Adding Custom Templates

1. Click on the top left organization.
2. Select Settings.
3. Select Invoice Settings.
4. Select New Branding Theme (or scroll down to modify the relevant theme). Note that each branding theme has 5 different documents in Word (DocX) you can upload:
• Invoice
• Credit Note
• Statement
• Purchase Order
• Quote.
5. Each document can use the following placeholder fields to customize the document.

Add custom templates

• Click on top left organisation
• Select Settings
• Select Invoice Settings
• Select New Branding Theme (or scroll down to modify the relevant theme). Note that each branding theme has 5 different documents in Word (DocX) you can upload
• Invoice
• Credit Note
• Statement
• Purchase Order
• Quote
• Each document can use the following placeholder fields to customise the document

Sample Quote

• Link to document

Tern Expense Recharges to Portfolio Companies

1. Accounting
2. Reports
3. Tracking Summary
4. Set FROM date and TO date
5. Select “Expenses” from Account Groups
6. Leave Tracking Category as “Recharge Category”
7. Pick the numbers under “Net Activity” for the portfolio companies to recharge for the relevant mont

Instructions to accountant

At the beginning of each month, do the following to find out how much to recharge to the portfolio companies

1. Go to this link Xero | Expenses | Tern Capital Limited
2. Select FROM date as the 1st of the month two months prior. If you invoicing Meta Broadcast on 1 April for March 2023 services, then the expenses recharge will be for February 2023. Therefore, the FROM date should be 1 Feb.
3. Select TO date as the end of the relevant month e.g. 28 Feb 2023 in the above example.
4. Filter by Recharge Category -  SELECT THE RELEVANT PORTFOLIO COMPANY
5. Click Update
6. Look at the total and this is the amount to recharge. Take a backup of this by exporting this in Excel (bottom right) and attach it to the invoice sent to the Portfolio Company
7. Do steps 4-6 for every portfolio company