“Yes, Amanda is an expert in Xero, but she is a generous expert. If she couldn't do backflips inside the software, she could not as generously share her knowledge. She has offered so much support to countless new bookkeepers it is no wonder that so many follow in her footsteps and build a firm on Xero. The bookkeeping world has been begging for a resource like this and it couldn't have been written by anyone else.”
—Kate Josephine Johnson, Owner of Heritage Business Services and Author of The Bookkeeping Side Hustle Guidebook
“As I was starting out with Xero, Amanda was super supportive of my journey, always available to answer questions, and always knowledgeable of Xero features. She's still one of my main go-to resources when it comes to all things Xero.”
—Trinity Scott, Owner and Chief Technologist of T3 Bookkeeping
U.S. Edition
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Amanda Aguillard was one of the first partners to reach out when I arrived in the United States nearly four years ago from New Zealand, where cloud adoption is high and Xero is a household name. She was an early adopter of Xero and has been, and continues to be, a huge advocate for our brand among the advisor and small business community. We instantly connected.
Our mission at Xero is simple—to make life easier for small businesses. And how we do that is through our powerful cloud-based accounting software platform that connects small businesses and their advisors with information they need to monitor financial performance. There's a massive opportunity for Xero to grow, together with our partners, by helping small businesses. Our goal isn't to be the biggest in the United States. Instead, we aspire to be the most trusted and insightful.
It takes more than just great technology to serve small businesses. It's a combination of technology excellence and the human element, and that's where Amanda shines. She knows Xero products inside and out and has trained the full range of Xero users, from brand-new sole proprietors all the way to Big Four international firms. Amanda is one of our most vocal champions, but also one of our biggest critics; she isn't afraid to tell us what we need to do better. She has built a successful practice and is at the vanguard of a changing profession, challenging us to deliver excellence to the small businesses we serve.
We're honored and thrilled that Amanda is writing about her success with Xero in the United States. As you read this book, I have no doubt you'll channel Amanda's passion and take away many best practices on how to utilize the Xero platform with your firm and your clients. While it is still the early days for widespread cloud adoption in the accounting industry, the global pandemic has helped to accelerate the shift from physical to virtual. We're at the end of the beginning in the United States and will be debuting new product features throughout 2021. We hope that Amanda's book will inspire you to join us on that journey!
Ben Richmond
Country Manager, United States, for Xero
In 2012, I found myself divorced with two small children. As those things go, it was half surprise and half expected. I knew I had a short runway to recrafting some kind of career after not working since the birth of my son seven years earlier. I had experience in public accounting, having done time at Deloitte & Touche, and in my last job before my son was born, had earned the role of controller of a large company in New Orleans at age 26. Given the demands of both of those positions, neither seemed reasonable for a newly single mom to kids aged seven and eight.
Over the next few years, I cobbled together some freelance work, inadvertently building an accounting firm. I had little faith in the longevity of this path, but I was fiercely committed to using cloud-based software for as long as it lasted. Turns out, Aguillard Accounting, LLC is still alive and kicking nine years later.
As I taught myself the ins and outs of browser-based accounting software and addons, I realized that there was a whole population of accountants that did not yet understand the power and freedom of the cloud. Half seriously (and half as a way to write off travel with my best friend,) I co-founded Elefant, LLC, a training company for advisors. Our mission is to help accountants and bookkeepers leverage technology to build their dream practices. I hold this close to my heart because it was technology, and specifically Xero, that allowed me to build an accounting firm from my guest bedroom as a single mom to two children.
Back in 2012, I had no idea what a significant part Xero would play in my life. At that time, Xero was hardly known in the United States, but I was immediately drawn to it. The interface was clean, the logic simple, and the framework cutting edge—build a really good general ledger and allow small businesses and their advisors to craft the perfect ecosystem through application programming interfaces (APIs).
As I have become a writer, trainer, and sometimes counselor on all things accounting tech, I have been pushed to learn more about other, more popular, cloud-based general ledger systems. Inevitably, I get frustrated by functionality stuck anywhere it may fit and often catch myself muttering, “I don't know how people live like this.” Time and time again, I come back to the safe space of Xero and let out a sigh, knowing this is how beautiful accounting should be.
This book covers features available in the Established subscription plan in Xero. If you cannot access features or modules, you may be in a lower subscription plan. Unless otherwise noted, any instructions on accessing functions will begin from the organization's Dashboard.
This is a technical guide to the use of accounting software. Because of the nature of the book, I do my best to use consistent terminology throughout. The word account refers to a general ledger line or category, not a bank account. Bank account is used to refer to checking, savings, or credit card accounts held at banks or other financial institutions. Invoice is used to refer to a document for collecting revenue from customers, and bill is used for noting a payment due to vendors.
This book also includes digital resources. See About the Website for the link and password.
This book is an effort to provide a comprehensive instructional and reference guide for the U.S. version of Xero. Since Xero is a true cloud-based software application, it is regularly updated. As such, some updates may have taken place since the writing of this book. This book makes an effort to explore the features in Xero in detail, but again, recent improvements may not be reflected.
This book is not meant to teach bookkeeping or accounting theory and assumes a basic level of accounting knowledge. Many features discussed herein are available only at the Advisor level of user access or as a certified Xero Partner.
Although I have created lots of accounting content in the last several years, this book has been one of the toughest projects I have ever taken on. It would not have been possible without the support, guidance, and positive energy of so many people. I am humbled and grateful to many beautiful souls for helping manifest one of my greatest dreams, to become a published author, including:
My two children, Avery and Jack, for their patience during this writing and without whom I never would have stretched and found my wings, and their father, for his graceful support in co-parenting, during the writing of this book and also the past 10 years.
My parents, who are unfailingly supportive of everything I do and who have taught me to work hard, ignore others' opinions, and do the right thing.
Monica Fontenot, my partner in Elefant and best friend of more than 25 years.
Katie L'Heureux, who patiently and tirelessly manages my accounting firm, Aguillard Accounting, and without whose support I would have had to pick either this project or the firm.
David Leary and the Accounting Salon, a community of the brightest and most generous spirits in cloud accounting.
My fellow National Xero Ambassadors, Liz Mason, Tate Henshaw, Allison Hawkins, and especially Jay Kimelman, who has never hesitated to jump on a call with me when I needed a technical guru.
Rod Drury, founder of Xero, change agent of cloud accounting, and dear friend. I will never forget meeting him at the first Xerocon Americas in San Francisco in 2013, when he greeted every attendee at the door in jeans, shook their hand, and said, “Hi. I'm Rod.” After many years of stale accounting conventions, I knew I had found my people.
The whole Xero team for being incredibly supportive, especially Ben Richmond for contributing the Foreword to this book, Anthony Staltari for answering every overly specific product question I had, Sarah Bleeker for being unfailingly patient and positive, the Partner Consultant team for being my sounding board, and all of the account managers who work tirelessly as evangelists of the best cloud accounting platform in the world.
My emotional support network in New Orleans, the D List.
Jeff Phillips, who has been a strategic advisor and trusted confidante since we first met.
Andrew Lilly, my attorney, who always listens patiently to my wild ideas.
Rob Couhig, who was my first client and trusted me to work on many of his cases. Without Rob, there would be no Aguillard Accounting, Elefant, or Xero book.
Ellen Cook, who as the head of the accounting department at my college, nominated me for a tax competition that changed the trajectory of my whole career.
Amanda Aguillard decided when she was 16 to become a CPA, and never looked back. She started Aguillard Accounting, LLC in 2012, committed to running a cloud-based practice from anywhere in the world.
She was named one of the Top 50 Women in Accounting in 2018 and 2019 and has been a Hubdoc Top 50 Cloud Accountant in the past. She was the Xero Evangelist of the Year in 2016 and used her experience as an instructor of the Xero Certification course to co-found Elefant, a continuing education company for accountants and bookkeepers. She is also the founder of Accounting Salon, a think tank of cloud accounting experts, and its virtual offshoot, SALONv.
While she holds a Masters of Taxation degree from the University of Denver, her passion is to help advisors leverage technology to build their dream practices. She is a Certified Instructional Systems Designer and regularly speaks at state CPA societies and industry technology conferences like Accountex, AICPA Engage, Clio Cloud Conference, and Xerocon.
She spends any spare time cooking for her two kids and reading historical fiction. She is slightly obsessed with Penzeys Spices and backcountry hiking.