Xero Bookkeeping Blog
XERO CIS - A record of Contractor Industry Scheme enabled contractors is held in Xero. CIS deductions due to HMRC are calculated, enabling monthly statements to be sent by email to each contractor. CIS-Suffered can be a more confusing issue where your company works in the capacity of sub-contractor for a contractor who makes deductions on behalf of HMRC. This deduction is typically reported through Payroll to offset PAYE & NI deductions.
Xero Bills - It is always a challenge to persuade everyone in an organisation from the CEO down to provide supplier invoices and receipts, otherwise referred to as 'Bills' in Xero terminology. When the fear of a VAT inspection should be sufficient to ensure compliance from company management, regretfully this is rarely the case. Although some use Hubdoc and DEXT to upload images of supplier invoices, I have yet to be convinced they are any better than simply forwarding to the unique Xero 'bills' email address. I will always assist in preparing a VAT return to ensure full reclaim of VAT expenditure, before being reviewed by company management and submitted directly from Xero. This is in complete contrast to many bookkeeping organisations who will not reclaim VAT on expenditure in the absence of a VAT receipt, where the client is blissfully unaware of the financial loss being incurred on their behalf.
Xero Bank Feed – I recently assisted an organisation who had failed to establish a Metro bank feed for several months and had proceeded to import bank statements together with associated errors. After identifying which bank form to complete and where to send it, the feed from Metro to Xero was up and working four days later.
VAT – Beware of loosing your Government Gateway credentials which should always be kept in a password protected document on the company One-drive