Summary

Fixed assets are an essential part of most businesses. Having assets tracked in Xero is helpful for the business owner, as they know what assets they have, their depreciation, their age, and so on. Come tax season, it also helps you provide your tax professional with the details of all your asset additions and disposals easily. In this chapter, we went through the process of setting up Xero for your fixed assets; we added a new asset, depreciated it, and then disposed of it. We covered the entire cycle, and now you should have the confidence to perform this on your books or for your clients.

So far, everything we have done has booked the entries into Xero for us. In the next chapter, we will dive into manual journals, the key to posting adjustments and changes in Xero, and we’re taking things mobile! We will show you how to use Xero on the go.