Accounting in 5 - Episode 1 - 'Chart of Accounts'

Welcome to our new UA-cam series 'Accounting in 5'.
In this series we'll cover key accounting concepts in less than 5 minutes.
Our first episode is on 'Chart of Accounts'. We hope you enjoy this new series and look forward to your suggestions on future video content.
For bookkeeping, training or coaching you can reach out using our details below:
www.tallbooks.com.au
[e-mail]
tallbooks

[@ahditah8102]

Good video

[@TallBooks]

Thanks!

[@udessadelossantos5446]

i wish you provide internship for xero in the future😊😊

[@rashvinderkaur4851]

I must say, your all youtube videos are very informative and helped me alot in clearing my doubts.
Could you please tell me how can I record purchased 24 months insurance cover in xero? Do I have to add a bill for that and at the end of the month make an adjusting entry.
And how I can record electricity bill received but not paid yet in xero.?

[@TallBooks]

Hi Rashvinder, there's no unique way to do this in Xero. Most commonly you'd set-up a prepayments Asset account, then code the insurance bill (in full) to this account as a bill. Then set-up a repeating manual journal that debits the insurance and credits the prepayments on a monthly basis until 24m is up.

[@rashvinderkaur4851]

@@TallBooks
Thank you very much for your reply. While setting up an account for that, what we have to select for type of account :current asset, fixed asset or prepayments? And Is the due date of that bill will be after 24 months?

[@TallBooks]

@@rashvinderkaur4851
you date the bill on the date the insurance is dated on the invoice and marked as paid accordingly. But instead of coding to insurance code to prepayments. Account can be current asset.

[@rashvinderkaur4851]

@@TallBooks
The insurance cover is for 24 months. Is it right to code as a current asset?

[@henilsheth3952]

How can we deal with contra entry in xero?

[@TallBooks]

You'll need to elaborate. What are you trying to acheive?