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I have followed the steps you described and it works well. However, how do I actually get my personal money back? I used personal money to pay for company expenses because my corporate bank account was not ready yet as I was setting up my business. Now that I know how to expense correctly in Xero, how do I actually get my personal money back to my personal bank account?
Good video but 1 question...... Why use the directors loan account at all? Could you not just transer the money from your business account into your personal account and then just reconcile the transaction to the bill or expense claim?
@@mark-and-trina I'm possibly missing something but why not just pay each bill/expense claim from the business account and then reconcile to, for example, General Expenses or Travel - National etc?
@@PGGamer81 It's more of a tax issue than a bookkeeping issue. Any money that comes out of your business and into your back pocket needs to be done properly for tax purposes.
Mark - in the Classic (old version) of Xero expenses you could assign the expense to a supplier (contact). The advantage of that was if you wanted to create a report on all transactions with a supplier it would show up against the supplier. This newer version does not seem to allow that meaning you would have to create a supplier report and search through expense claims as well. Is there anyway round this?
Hello Mark, thank you for you for your wonderful tutorials. I was wondering why 881 Not BAS - in this example would the expense not be included in BAS ? - also could this set up be used to record " petty cash" thank you Michelle
Thanks mate - Question - Can I do this in bulk? I have 30-40 expenses from 2 months PRIOR to starting Xero (as a sole trader). Everything since I've tracked with a business account - but it's these legacy ones I need to bring in (vs doing manually one by one which would be time consuming)
We don't subsribe to the Expenses. My accountant advised the add the expenses into a Manual Journal debited to Owner Funds Introduced and reconcile pay back to own account to the Owner Funds drawn. Is this ok?
Do you have a video on how to match receipt with business expenses using business card? Like I used QBO where I upload my receipt with receipt scanner. And then I later match it with the transaction. I don't know how to do that here. Does Xero "Expenses" App offer this function?
@@mark-and-trina I mean I just want to upload al receipt at same time. For example, end of every week or so, I want to put it together and then reconcile it. Is that expenses claim?
I have answered my own question via the settings, can input a personal bank account. I often pay via cash or crypto also tho, so I have numerous accounts, hoping that it somehow still syncs for the purpose of accounting expenses as "personal"
Sorry for the late reply. Hopefully you've got it sorted. In a nutshell, you can't select personal money in Xero. You have to code the transaction to a Director's Loan account or an Owner's Drawings account or similar.
🎁 EXCLUSIVE DEAL - Get 90% Off Xero for 6 months by signing up here: bit.ly/ytxero90
✅ Get your FREE Xero Setup Checklist here: bit.ly/3ZgSaqt
👉 Master Xero without getting stuck with The Ultimate Xero Course for Australia: bit.ly/3CFkMkl
►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily?
►► Do you want clear explanations in plain English with all the information in one place?
►► Do you want to feel confident that you’re doing it right?
🚀 Then check out the step-by-step program for business owners to master Xero without getting stuck: bit.ly/3CFkMkl
Very clearly explained. Thanks Mark
I have followed the steps you described and it works well. However, how do I actually get my personal money back? I used personal money to pay for company expenses because my corporate bank account was not ready yet as I was setting up my business. Now that I know how to expense correctly in Xero, how do I actually get my personal money back to my personal bank account?
i also wandering how?
Good video but 1 question...... Why use the directors loan account at all? Could you not just transer the money from your business account into your personal account and then just reconcile the transaction to the bill or expense claim?
If you did that you would have to code the transfer as Drawings.
@@mark-and-trina I'm possibly missing something but why not just pay each bill/expense claim from the business account and then reconcile to, for example, General Expenses or Travel - National etc?
What are the implicatons?
@@PGGamer81 It's more of a tax issue than a bookkeeping issue. Any money that comes out of your business and into your back pocket needs to be done properly for tax purposes.
Mark - in the Classic (old version) of Xero expenses you could assign the expense to a supplier (contact). The advantage of that was if you wanted to create a report on all transactions with a supplier it would show up against the supplier. This newer version does not seem to allow that meaning you would have to create a supplier report and search through expense claims as well. Is there anyway round this?
Will it work if I change the liability account as equity (owners investment)?
Hello Mark, thank you for you for your wonderful tutorials. I was wondering why 881 Not BAS - in this example would the expense not be included in BAS ? - also could this set up be used to record " petty cash" thank you Michelle
Thanks mate - Question - Can I do this in bulk? I have 30-40 expenses from 2 months PRIOR to starting Xero (as a sole trader). Everything since I've tracked with a business account - but it's these legacy ones I need to bring in (vs doing manually one by one which would be time consuming)
I dont have the option of "How did you pay" do we have to set it up in xero?
We don't subsribe to the Expenses. My accountant advised the add the expenses into a Manual Journal debited to Owner Funds Introduced and reconcile pay back to own account to the Owner Funds drawn. Is this ok?
There are a bunch of different ways to do it and that one seems ok.
Do you have a video on how to match receipt with business expenses using business card? Like I used QBO where I upload my receipt with receipt scanner. And then I later match it with the transaction. I don't know how to do that here.
Does Xero "Expenses" App offer this function?
You can just attach a copy of the receipt to the Spend Money transaction when you're reconciling the payment in the bank account feed.
@@mark-and-trina I mean I just want to upload al receipt at same time. For example, end of every week or so, I want to put it together and then reconcile it.
Is that expenses claim?
Hey mate, I am trying this and following all well, my Xero doesn't let me select between Company and Personal money tho, have I missed something?
I have answered my own question via the settings, can input a personal bank account. I often pay via cash or crypto also tho, so I have numerous accounts, hoping that it somehow still syncs for the purpose of accounting expenses as "personal"
Sorry for the late reply. Hopefully you've got it sorted. In a nutshell, you can't select personal money in Xero. You have to code the transaction to a Director's Loan account or an Owner's Drawings account or similar.