How to read Xero management reports

Annette Ferguson

Annette Ferguson

How to read Xero management reports
  • Profit and Loss Report
Fill in the dates and period in which you will compare to your Overall Budget for your Profit and Loss report VS your Budget.
Xero, Bank
This is your month actual versus budget and you can see the variance at the third column.
Xero, Bank
On the right columns you can see the year-to-date performance or actual figures also versus budget.
Xero, Bank
You can also see your sales. net profit, loss in this report.
Xero, Bank
  • Balance Sheet
You can find the Balance Sheet under “Reports” series. If you drill in there you should be able to find out.
Xero, Bank
The balance sheet is a snapshot of what the business owes and owns in a particular point in time. The general structure you’ll see will be made up of assets and liabilities and equity.
Xero, Bank
  • The Business Performance Dashboard
Business Performance Dashboard can be found under “Reports”
Xero, Bank
This is the Accounts Receivable days and is also knows as the debtors days. 
Xero, Bank
  • The Gross Profit
The gross profit is calculated as the sales minus the cost of goods sold which give you your gross profit or your gross margin.
Xero, Bank
  • Debt to Equity Ratio
The debt to equity Ratio is sometimes called as the gearing ratio. 
Xero, Bank
  • Aged Receivables and Payables
The aged receivables report can be found under Reports.
Xero, Bank
The aged receivable report is particularly important because from here we can see who owes us money and we can go and chase those debtors and get that cash into the business. Here you can find the list of the people that owe you the money.
Xero, Bank
“Aged” means the months that’s broken down into months and how old those debts are.
Xero, Bank
In Aged Payable Report you can see the suppliers or people that you owe money.
Xero, Bank
  • Cash Flow Report
Here is a really simple example of a cash flow forecast.
Xero, Bank
The cash flow starts off with your opening cash position or your opening bank balance.
 Xero, Bank
Then the cash flows you expect to come in like money coming in from the sales that you’ve made.
Xero, Bank
Then the cash outflows like the money coming out for purchases goods, fixed assets 

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!