Xero In on Xero; Getting Started with Xero Files

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Xero In on Xero Files

Sharing documents in an easy way is vital in working with our clients. There are a variety of documents that we need from our clients, some on a one-off basis and others on a regular basis. We have found that using Xero Files is an ideal way for us to be able to share and store such documents.

We have been using Xero since 2012 with our bookkeeping firm. One of our favorite features in Xero is Xero Files.

About Xero Files

Each Xero organization has their own Xero file library. The Xero file library contains an Inbox, Contracts folder, and any other folders you wish to add. You can upload most standard file types into Xero Files except executable, audio or video files. Each file must be less than 25MB.

There are multiple ways that you can upload into Xero Files. You can upload from the Xero Files screen when logged into a Xero organization, you can email to a unique email address for the organization, or you can allow a third-party application to push files into Xero Files. We use a combination of all three with most of our clients.

Getting Started with Xero Files

As soon as we begin working with a new client, we create new folders in Xero Files in order to organize and find stored documents later. We generally will create a folder for each bank and credit card account.

Here are the steps to create a new folder in Xero Files:

  1. From the Organization menu, click Files
  2. Click New folder (pictured below)
  3. Name your folder
  4. Click Save

Xero Pro Tip: We number the names of the folders for the bank and credit card accounts so that the folders will appear at the top of the list and in the order we want. (1. Checking, 2. Savings, 3. Credit Card, etc.)

Using Third Party Apps with Xero Files

There are many documents we need on an ongoing basis, such as bank and credit card statements. Using a third party app can automate the gathering of such documents and some can even integrate with Xero to push these files into Xero Files.

Hubdoc is one example of an app that can help with this. In Hubdoc, you provide your bank credentials so Hubdoc can automatically retrieve your bank and credit card statements. If you integrate Hubdoc with Xero, you can also have Hubdoc push those statements right into Xero Files. We absolutely love this feature. When our bookkeepers go to work on one of our bookkeeping clients, all the needed bank and credit card statements are already in Xero Files. This saves our staff a lot of time, allows us to work on month-end closings promptly, and also eliminates the need for us to pester our clients to get such regular needed ongoing documents.

Why Use Xero Files?

Many of our clients use other document storage systems such as Dropbox or the like. However, we still use Xero Files with these clients. First of all, we want our processes across all of our clients to be consistent. Secondly, we do not want the ability to work on a client to be limited by access problems. If the documents are stored in Xero Files, then all of our staff members that have access to that Xero organization can have access to the needed documents. It makes it hard on staff members if documents are stored in different applications for different clients and being consistent in where we store such documents streamlines our internal processes.

This was emphasized to me with something that took place recently. One of our clients uses Dropbox. Our bookkeeper assigned to work with this client had access to the client’s Dropbox files, but apparently no one else on our team had access to the files. This became a problem when our bookkeeper who normally works on this client’s month-end closing was out of the office for a couple of days. Our client needed something done on their file and no one else on our team could access the required documents. This delayed our being able to assist the client.

We encourage you to use Xero Files to share and store files with your clients. It can make both you and your clients' lives so much easier. We hope you will love using Xero Files as much as we do.

Author Bio: Cindy Hovig is the founder and Owner of Beyond Balanced Books Inc., a modern bookkeeping firm specializing in working with service based businesses. As an early adopter of cloud accounting, Cindy champions cloud accounting applications because she has seen them transform small businesses. Her firm, Beyond Balanced Books Inc. was awarded “Xero Bookkeeping Partner of the Year” in 2016 and received the “Xero Partnership Impact" award in 2017. Follow her on Twitter: @bbbooksinc.