Guides for a faster, cleaner month-end
Plain-English explainers on accruals, prepayments, deferred income and closing the books on Xero.
Prepayments
4 guidesWhat is a prepayment? Definition & examples
A plain‑English definition of a prepayment in accounting, why it sits on the balance sheet, and everyday examples.
How to account for prepayments in Xero (with examples)
A step-by-step guide to recording and releasing prepayments in Xero — with worked examples and a faster, automated alternative.
Prepaid expenses: 8 common examples for UK businesses
Not sure what counts as a prepaid expense? Here are eight everyday examples and how to treat each one.
Prepayment journal entry examples (UK)
Clear, worked prepayment journal entries for UK bookkeepers — insurance, rent and annual software — plus how to release them each month.
Accruals
6 guidesWhat is a reversing journal (and when to use one)?
A plain-English guide to reversing journals — what they are, why accruals use them, and how to avoid double-counting.
What is an accrual? Definition & examples
A plain‑English definition of an accrual, how it differs from a prepayment, and common examples in month‑end accounting.
How to record accrued expenses in Xero
How to accrue for costs you've incurred but not yet been billed for in Xero — with the journal, the reversal, and a worked example.
The monthly accrual journal: a reusable template
A simple, reusable template for your monthly accrual journals — what to include, how to reverse, and how to keep the schedule reconciled.
Accruals basis vs cash basis accounting
The difference between the accruals (accrual) basis and the cash basis of accounting — and which one your business should use.
Accruals vs prepayments: what's the difference?
Accruals and prepayments both smooth costs across periods — but they work in opposite directions. Here's a plain-English explainer.
Deferred income
4 guidesWhat is deferred income? Definition & examples
A plain‑English definition of deferred income (deferred revenue), why it's a liability, and how it's recognised over time.
How to record deferred revenue in Xero (with journal examples)
Invoiced up front but haven't delivered yet? Here's how to record deferred revenue in Xero and recognise it correctly, month by month.
Deferred income & revenue recognition explained
What deferred income is, why it sits on the balance sheet, and how to recognise revenue correctly — with a simple example.
Accrued income vs deferred income: what's the difference?
Accrued income and deferred income are opposites — one is an asset, one a liability. Here's how to tell them apart, with examples.
Depreciation
2 guidesWhat is depreciation? Methods & examples
A plain‑English definition of depreciation, the main methods (straight‑line and reducing balance), and a worked example.
How to account for depreciation in Xero
How to set up and post depreciation in Xero — straight‑line and reducing‑balance — with the monthly journal and a worked example.
Month-end
2 guidesA practical month-end close checklist for Xero
A repeatable, reviewer-friendly month-end checklist for teams running the close on Xero.
The month-end close process, explained step by step
A clear, repeatable month-end close process — from cut-off to sign-off — for teams and practices working on Xero.
Comparisons
3 guidesManual vs automated month-end journals
Should you keep posting month‑end journals by hand, or automate the recurring ones? A practical comparison for teams on Xero.
Managing prepayments in Excel vs automating on Xero
Spreadsheets are the default for prepayment schedules — but they don't reconcile themselves. Here's how a spreadsheet compares with automating on top of Xero.
Xero's built-in options vs a dedicated accruals & prepayments tool
Xero can handle repeating journals and fixed assets — so when do you need a dedicated accruals and prepayments tool? An honest look.