Following our recent Xero training workshops, we have received a number of questions — including from clients who could not attend. To help everyone get the most out of Xero, we’ve compiled the most frequently asked questions, along with links to Xero’s official support guides.
We’re planning to run further workshops in the future, so follow our social media pages for updates and announcements.
Bank Account Setup
Q: Which bank accounts should I set up in Xero – business accounts, credit cards, loans, term deposits?
A: All bank accounts related to your business operations should be set up in Xero. This ensures full financial visibility and accurate reporting.
➡️ Add a bank or credit card account
Transaction Corrections
Q: Should I use “Remove & Re-do” or “Unreconcile” when correcting reconciliation mistakes?
A: We recommend using Remove & Re-do when correcting reconciliation mistakes. This option deletes the incorrect reconciliation and returns the transaction to the bank reconciliation screen, allowing you to match or reconcile it again correctly. It’s the most efficient and accurate way to fix reconciliation errors without affecting the underlying transaction.
➡️ Delete an account transaction
Hubdoc Integration
Q: What are the primary use cases for Hubdoc?
A: Hubdoc is a document management system that extracts data from invoices and receipts. It can automatically create draft transactions in Xero, saving time and reducing manual entry.
(If you are a GBC client and wish to utilise Hubdocs speak to your client manager and they will help set this up for you).
➡️ About Hubdoc
➡️ Set up Hubdoc for your organisation
Document Organisation
Q: How do I tag documents and set up folders in Hubdoc?
A: You can use custom tags and folder structures in Hubdoc to categorise your documents. This improves organisation and makes document retrieval much easier.
➡️ Organise documents with tags and folders
Payment Management
Q: How should we handle prepayments and overpayments?
A: a) Prepayments occur when a customer pays before an invoice is issued.
b) Overpayments happen when the payment exceeds the invoice amount.
Both scenarios require careful handling to maintain accurate cashflow reporting. Xero has dedicated workflows for managing both, ensuring your receivables stay accurate.
➡️ Record a prepayment
➡️ Record an overpayment
Customer Refunds
Q: How do we process refunds for customer overpayments?
A: Xero provides functionality for handling both customer and supplier refunds, ensuring proper tracking and reconciliation of returned payments.
➡️ Process a customer or supplier refund
Employee Expense Reimbursements
Q: What is the best practice for reimbursing employee expenses in Xero?
A: Employee expenses can be managed and reimbursed through Xero’s payroll and expense claim tools. This allows for efficient claim approvals and payment processing. Note: This feature requires a Xero Payroll subscription.
➡️ Pay an employee’s expense claim using payroll
Disclaimer: All external links referenced were verified as accurate at the time of publication. We are not responsible for any changes to content or availability on the Xero website. For the most up-to-date information, please consult Xero Central.
Still have questions? Please contact your client manager — we’re happy to help.
