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How does Xeros' chart of accounts work

Ensure you understand the differences between Xero and other software

The most important items to remember are:

  1. Your clients can add / edit / archive / delete accounts - You have NO control over that, so you will need to check accounts added by your clients 
  2. The account number has NO effect on these reports - some incumbent software are separated into code ranges, which determine category. EG 0575 in Handiledger is "Interest Received". 
  3. Xero displays alphabetically, so contra accounts can be an issue, see other article on best practice.
  4. You can't have the same account name, Xero will not allow that. 
  5. You can have the same reporting name, see other article on best practice.
  6. You have a very limited choice in account types, you can drill deep into types such as goodwill, related parties, amortisation, taxation, secured loans, drawings, grants income, director loans, etc (Report codes determine this)