Getting started with new accounting software can feel overwhelming. The good news is that Xero offers a free 30-day trial. You can explore every feature before you decide to commit.
Business owners need more than just software access. Xero delivers detailed support resources that include a dedicated support team and an active user community. The step-by-step setup guide helps you configure your Xero account easily. You’ll find everything from enabling Auth2.0 to managing your Chart of Accounts.
New to digital accounting? Or maybe you’re switching from another platform? We’ve created this simple piece to guide you through the process. Your Xero journey starts here!
Choose the Right Xero Plan for Your Business
Your choice of Xero plan is a vital step in setting up your accounting system. Xero has plans designed for businesses of all sizes and needs.
Xero launched a new lineup of plans for New Zealand businesses in September 2024. These plans replace the older Starter, Standard, and Premium options. The new structure has four main options:
Ignite Plan (NZD 59.70/month) – This plan works best if you are self-employed or just starting your business. You get simple accounting features, GST returns tracking, and can send up to 20 invoices monthly.
Grow Plan (NZD 127.92/month) – The plan suits self-employed and growing businesses that want to automate admin tasks. You get payroll and expenses for one person.
Comprehensive Plan (NZD 168.86/month) – Businesses with employees will find this plan useful. It offers optimized accounting and payroll for up to five people, multi-currency features, and advanced cash flow predictions.
Ultimate Plan (NZD 192.73/month) – Scaling businesses get all the tools they need with this plan. It includes payroll, expenses, and projects for up to ten people, plus advanced forecasting options.
Xero has a great promotion running – 90% off for 4 months for purchases made by April 30, 2025. This makes your monthly costs much lower during the first few months.
Not sure which plan fits your needs? Xero’s recommendation tool can help. You answer questions about your invoicing volume, bill management, and payroll needs to get a plan suggestion that matches your business.
You can try Xero free for 30 days without a credit card. This trial period lets you test all features and make an informed choice.
Running multiple businesses? Xero gives you automatic discounts when you use the same subscriber email across organizations. You pay less while keeping separate accounting for each business.
Pick a plan that matches your business’s size today and growth plans tomorrow. The right choice gives you the features you need without extra costs.
Set Up Your Xero Account Step by Step
Let’s head over to setting up your Xero account now that you’ve selected your plan. The process gets you up and running quickly.
You’ll need to create your Xero organization first. Sign up on the Xero website, confirm your email address, and enter your business details. You can choose between a 30-day free trial or purchase a subscription right away. Note that trial organizations have similar features to paid ones, and your transactions stay intact if you subscribe later.
After creating your account, configure your financial settings:
- Set your financial year end date (the default is March 31 for New Zealand businesses)
- Configure your GST details including your GST number and accounting basis
- Establish tax defaults for sales and purchase transactions
- Set lock dates to prevent users from changing past transactions
The next step connects your bank accounts to streamline your accounting. Xero’s automated bank feeds pull transactions directly from your bank accounts regularly. Set up your bank account in Xero and connect it to your actual bank account. Your bank determines whether you can import historical transaction data from the past 90 days or up to 2 years.
Bank feeds eliminate the need to manually download and import statements. Your transactions appear automatically in Xero, giving you a current view of your finances.
The final step customizes your invoicing system to match your business identity. Create professional-looking invoices and set up automated reminders for overdue payments. Online payment options make it easier for customers to pay right away.
New Zealand businesses should add their NZBN to their organization details when using eInvoicing. This connects you to the Peppol eInvoicing network and makes shared electronic invoices possible.
Start Using Xero for Daily Business Tasks
Your Xero account setup lets you exploit its powerful features for your daily business tasks. The accessible interface makes your business finance management quick and saves time.
Managing Invoices and Payments
Creating professional invoices in Xero doesn’t take much effort. You can customize invoice templates with your logo and payment terms. Add your charges and send them. The system lets you:
- Add a “Pay now” button to invoices so customers can pay directly with credit or debit cards through providers like Stripe
- Set up automated payment reminders for overdue invoices
- Convert quotes to invoices with a single click
- Track unpaid and overdue invoices with up-to-the-minute data analysis
Xero’s mobile app helps you create and send invoices from anywhere. You can bill clients quickly even away from your desk.
Tracking and Managing Expenses
Managing expenses becomes easier with Xero. The expense tracking software helps you capture, track, and manage expenses right from your mobile device.
The Xero Me app lets you snap a photo of the receipt after a business purchase. The software extracts key details like vendor, date, and amount automatically. It auto-fills your expense claim. This removes manual data entry and cuts down errors in your financial records.
Xero organizes your business expenses by category and gives you a clear view of different spending areas. You can assign expenses to specific customers or projects to track costs accurately.
Reconciling Bank Transactions
Bank reconciliation in Xero verifies your business accounting numbers. The system links directly to your bank and automatically imports your transactions. You won’t need to switch between documents and compare numbers manually anymore.
The system matches bank transactions with corresponding entries in your accounts quickly. Xero suggests matches or asks about unfamiliar transactions to streamline the reconciliation process.
Weekly or daily bank reconciliation keeps your financial records accurate. You won’t have to search for mismatched transactions later.
Conclusion
Getting started with Xero is a big step toward optimized business accounting. This piece shows you everything in Xero setup – from picking the right plan to handling your daily financial tasks.
The platform’s accessible interface and automated features like bank feeds and expense tracking make financial management easy for New Zealand business owners. It also offers detailed mobile features that let you access your business finances anywhere.
Note that Xero works best when you use it regularly and set it up properly. The 30-day trial helps you learn all features before you establish solid accounting practices with available tools and automation. Most owners find their accounting work becomes substantially easier after the original setup phase.
Xero adapts to your needs and keeps accurate financial records, whether you run a small business or lead a growing team. Each feature we’ve covered deserves your attention, and you’ll soon become skilled at using this powerful accounting tool to drive your business forward.
FAQs
Q1. How much does Xero cost for New Zealand businesses?
Xero offers four main plans for NZ businesses: Ignite (NZD 59.70/month), Grow (NZD 127.92/month), Comprehensive (NZD 168.86/month), and Ultimate (NZD 192.73/month). There’s currently a promotion offering 90% off for the first 4 months if purchased by April 30, 2025.
Q2. Can I try Xero before committing to a subscription?
Yes, Xero offers a 30-day free trial with no credit card required. This allows you to explore all features and make an informed decision before purchasing a subscription.
Q3. How do I connect my bank accounts to Xero?
Xero provides automated bank feeds that pull transactions directly from your bank accounts. Set up your bank account in Xero, then connect it to your actual bank account. Depending on your bank, you can import historical transaction data from the past 90 days or up to 2 years.
Q4. Can I create and send invoices using Xero’s mobile app?
Yes, Xero’s mobile app allows you to create and send professional invoices from anywhere. You can customize invoice templates, add a “Pay now” button for easy payments, and set up automated reminders for overdue invoices.
Q5. How does Xero simplify expense tracking?
Xero’s expense tracking feature allows you to capture, track, and manage expenses directly from your mobile device. You can snap a photo of receipts using the Xero Me app, which automatically extracts key details and auto-fills your expense claim, eliminating manual data entry and reducing errors.
