What is it?
The chart of accounts is the list of all accounts your organisation can use to record your transactions in Xero. The Xero chart of accounts has a flat structure designed to suit a small business. Every account in your chart of accounts has several components and you can edit some components, and use components to learn more about the account. You will need the Adviser or Standard user role to view accounts in the chart of accounts.
Why you need to customise your Xero coding
Your Chart of Accounts sits at the heart of your accounting system, providing a list of codes against which you and your accountant can code your financial transactions.
That may sound dull, but in fact it’s a hugely powerful tool for understanding your finances – and giving you the most detailed view of your income and spending. And in Xero you can customise your Chart of Accounts to add even more value.
The power of customising your Xero codes
Xero lets you create and name codes for every area of your business. So you have the power to produce a totally bespoke accounting system that’s unique to your business.
With a customised Chart of Accounts you can:
- Match all transaction to the relevant code, whether that’s sales, expenses, owner drawings or travel expenses
- Customise your Xero Chart of Accounts, and create codes for separate revenue streams, cost centres or overheads
- Produce detailed financial reports, allowing you to get granular with the numbers and improve your understanding of the business.
Adding different accounts can help you build out a set of accounts to help you track different accounts that matter you most. For example, you could separate various sales or expense types to narrow your focus or KPI’s depending on your business plan or strategic plan.
Talk to us about customising your Xero coding or help defining a set of accounts to suit.
If you want to get the most drilled-down, searchable view of your financials, we will help you tailor your Xero codes to deliver the important numbers and KPIs.
