Xero-first academy
From first debit to close.
Double-entry, day books, month-end, and the Xero screens that actually post the journal — with QuickBooks called out wherever the dialect changes.
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I · Starter
The books
What bookkeeping is, the equation, debits and credits, and the cycle that every later lesson rests on.
0/7
- What bookkeeping actually is7 minBookkeeping records; accounting interprets. The source of truth is the ledger, not the bank app.
- The accounting equation8 minAssets = Liabilities + Equity. Every transaction rearranges this identity; it never breaks it.
- Debits and credits10 minDebit is left, credit is right. The side that increases an account is its normal balance.
- The chart of accounts9 minA lean, numbered list of every bucket in the ledger. Types drive the statements; names are for humans.
- Journals, ledgers, T-accounts8 minThe journal is the story in time. The ledger is the story by account. They are the same entries, two views.
- The accounting cycle8 minIdentify, record, post, trial-balance, adjust, statements, close. Cloud software runs the middle continuously.
- Accrual vs cash — and why Xero defaults to accrual8 minAccrual matches income and cost to the period they belong to. Cash records the bank. Reports can switch; habits cannot.
II · Working
Day books
Invoices, bills, bank feeds, tax, payroll, and the Xero screens you live in during the week.
0/8
- Sales invoices and accounts receivable10 minAn invoice is a journal: debit AR, credit revenue and tax. Matching the payment is what clears AR — not a second sale.
- Bills, expenses, and accounts payable10 minEnter the bill when it arrives. Pay it later by matching the bank line. That is how AP stays honest.
- Bank feeds and reconciliation12 minXero reconciles statement lines. QBO also has a period-end ending-balance rec. Both must end at the same number as the bank.
- Bank rules, Hubdoc, and JAX8 minAutomation proposes. The bookkeeper still accepts. Rules need a contact, an account, and a tax rate that stay true.
- Sales tax, GST, and VAT11 minUS sales tax is a liability you collected. GST/VAT is often recoverable on purchases. Xero US leans on Avalara; QBO has a tax center.
- Money in and out without invoices8 minTransfers, owner draws, loan proceeds, merchant payouts, and refunds each have a home. “Miscellaneous” is not it.
- Payroll, Gusto, and contractors9 minWages split into expense, withholdings, and employer tax. Contractors are AP plus 1099 discipline — not “wage expense.”
- Credit cards, loans, and the rest of cash8 minA credit card is a liability with a feed, not an expense account. Loans are the same idea with a principal/interest split.
III · Close
Month-end
Accruals, depreciation, control accounts, the trial balance, and locking a period so it stays closed.
0/6
- Accruals, prepayments, reversing journals10 minIf the work or the benefit sits in this month, the books should too — even if the bank does not.
- Fixed assets and depreciation10 minCapitalize what will last. Depreciate the cost (minus salvage, if you use it) over useful life. The contra account holds the wear.
- Inventory and cost of sales9 minIf you hold materials for resale or a job, they are an asset until used. Then they become cost of sales, not “office.”
- Control accounts, clearing, and suspense8 minAR, AP, payroll liabilities, merchant clearing, and undeposited funds must equal their subledgers. Suspense is a siren, not a home.
- Trial balance to financial statements10 minThe trial balance is the pipe. P&L, Balance Sheet, and Cash Flow are three views of the same pipe.
- Month-end, year-end, and lock dates10 minA close is a checklist plus a lock. If anyone can still post into March on 20 April, you do not have a close.
IV · Pro
The practice
Chart design, tracking, onboarding, controls, reports, and the weekly workflow a bookkeeper actually runs.
0/6
- Designing a chart of accounts9 minLean, typed correctly, mapped to how the owner decides. Tracking does the slicing. The chart does the structure.
- Tracking categories vs classes and locations8 minXero tracking is line-level and available without an upgrade dance. QBO classes and locations are powerful and plan-gated.
- Onboarding a client file10 minConversion balances, opening invoices, bank starting position, users, and a lock. A pretty COA on a rotten open is still rotten.
- Internal controls and the audit trail8 minCloud software logs who posted. It does not stop one person doing everything. Design the habits the log will show.
- Reports a bookkeeper actually sends8 minMonthly pack: P&L, Balance Sheet, aged AR/AP, cash, and three sentences. Not forty PDFs.
- The weekly and monthly workflow9 minCapture, code, match, exception, rec, review, report, lock. Same spine whether the file is Xero or QBO.