Creating the Necessary Xero Chart of Accounts
SimpleClinic requires accounts in your chart of accounts to be created for:
1. An account to be settled into - the "Settlement Account". This will be used to record invoice payments pending the bank reconciliation.
2. Revenue accounts for each product category you have created in SimpleClinic.
To create your chart of account settings login to your Xero account and then go to Settings -> Chart of Accounts from Xero’s top navigation bar.
When your chart of accounts is displayed click Add Account from the action bar at the top of the account list.
The first account you need to create is to receive invoice payments. This account should be created as follows:
The account used for settlement requires the following settings:
· Account Type (required) - this should be set to type "Current Asset"
· Code (required) – You can provide any unique code for the account.
· Name (required) – A short name for the account. This will be visible in Xero and your reports. This is what we will refer to in the SimpleClinic Xero Setup Wizard.
· Description – A description for the account if required.
· Tax (required) – This should be set to BAS excluded. GST obligation will be calculated based on the revenue accounts created in the next step.
· Enable payments to this account (required) – This should be checked. This is the most important step to ensure that payments can be made to the nominated account.
Once you have created this account click Save at the bottom of the window.
Additional accounts should be created for each product category that you have defined in SimpleClinic. These should be revenue accounts. The example below shows a revenue account for Naturopathic Services.
The following settings are recommended for each revenue account you created.
· Account Type (required) – This should be set to Revenue or one of the child types depending on your accounts feedback.
· Code (required) – You can provide any unique code for the account. Typical Revenue accounts start with a code of 200.
· Name (required) – A short name for the account. This will be visible in Xero and your reports. This is what we will refer to in the SimpleClinic Xero Setup Wizard.
· Description – A description for the account if required.
· Tax (required) – This should be set based on whether you need to collect GST for the product category. Naturopathic services for example are GST exempt and would be set to GST Free Income. Product supplements on the other hand would be GST on Income.
· Enable payments to this account – This should remain UNCHECKED. Payments are not being allocated directly to the revenue accounts.
Repeat this step for each account you need to create in Xero. In SimpleClinic multiple product categories can be recorded in one Xero account. You need to create additional accounts for:
· Additional visibility in Xero reports if required.