How to set up beneficiary, unitholder and partner (owner) balances

Ensure you have the most simple and process

Owner reporting in Xero can be painful.

Let's use the example below for a trust with 10 beneficiaries.

Before you try it, here are some facts.

The process

1 - Determine WHO will be beneficiary 1,2,3 and so on.

Steve Jobs = Beneficiary 1

Bill Gates = Beneficiary 2

Michael Jordan = Beneficiary 3

2 - Set up the accounts as a liability or change the account type to liability.

Name the accounts in a way that makes sense. 

We recommend using the beneficiary names, EG "Drawings - Steve Jobs". 

3 - Go to report codes and map the accounts to the correct number.

4 - If needed, add in the balances, this does NOT include the distribution (DR appropriation amount) as this report does NOT include it.

5 - Your report should now look like this

6 - Record the income distributions

See this article.