Help with Xero

stulaunch

Hi, I'm a new user of Xero, Self employed, building trade, VAT registered, trying to get ready for MTD.
I'm hoping some helpful person on here, that uses Xero could answer a few questions for me.

1, I buy small hand tools quite often, but I don't know what code to put them under?

2, Also flooring materials, again not sure which code to put them under?

3, Then I'm not sure how to imput cash purchases, as I sometimes have to do this.

4, Also Last month I had to pay for a van repair with a credit card, not belonging to the bank that I have set up as a bank feed in Xero. How would I Input that transaction?

I have been searching Google & Youtube all day, but can't find the answers.
Thanks 

MattMattMattUK

stulaunch said:

Hi, I'm a new user of Xero, Self employed, building trade, VAT registered, trying to get ready for MTD.
I'm hoping some helpful person on here, that uses Xero could answer a few questions for me.

1, I buy small hand tools quite often, but I don't know what code to put them under?

It depends how you have set up the codes. Are these tools consumable, or assets that need to recorded as such and depreciated?

stulaunch said:

2, Also flooring materials, again not sure which code to put them under?

I am guessing that these are something which is a cost of you providing your service, or directly related to specific jobs? In that case then they are general Purchases. 

stulaunch said:

3, Then I'm not sure how to imput cash purchases, as I sometimes have to do this.

You add them as a Bill, uploading a photo of the receipt at the same time (if you don't have a receipt/invoice then you should not be putting it through the business. How you account for these directly might be slightly more complicated, you could either set up a petty cash system, or Expense them if that works out easier. Ideally for a business you should not be making any purchases using cash, what are these for?

stulaunch said:

4, Also Last month I had to pay for a van repair with a credit card, not belonging to the bank that I have set up as a bank feed in Xero. How would I Input that transaction?

Was it paid using a card you only use for business, but is not in Xero, in which case just add the card. If it was a personal card you could either expense it or add it as a Bill then pay it to yourself, the transactions will tie up and reconcile. Again make sure you upload a picture of the invoice.

stulaunch said:

I have been searching Google & Youtube all day, but can't find the answers.
Thanks 

The Xero forums are actually pretty good, however some of these are things that you would also ask an accountant, do you have one? My other advice would be to avoid making cash purchases and using other payment methods, try and purchase everything through the business bank account as it makes everything a lot easier, both in the long run and also if/when you get an HMRC audit. 

jajake

I’m a small builder I’ve just stopped using Xero . I found the logging in system a problem and the support adhock and not very helpful! Speak to your accountant and use what they suggest! 

Gl