What is Xero?
Xero is world-leading online accounting software built for small business.
- Get a real-time view of your cashflow. Log in anytime, anywhere on your Mac, PC, tablet of phone to get a real-time view of your cash flow. It’s small business accounting software that’s simple, smart and occasionally magical.
- Run your business on the go. Use our mobile app to reconcile, send invoices, or create expense claims - from anywhere.
- Get paid faster with online invoicing. Send online invoices to your customers - and get updated when they’re opened.
- Reconcile in seconds. Xero imports and categorises your latest bank transactions. Just click ok to reconcile.
Find out more or try Xero Accounting Software for free.
How does Equityspace connect to Xero?
Equityspace post transactions to Xero related to your ASIC obligations and share register to keep your financial accounts in sync. Currently Equityspace can post the following transactions to Xero.
Annual ASIC Review (Bills)
Each year when your annual ASIC review takes place you will receive an invoice from ASIC. When you prepare the annual review and solvency statement in Equityspace it will post the invoice to Xero as a Bill, ensuring that you pay it and you avoid a late penalty!
Share Issue (Journal)
Whenever you issue new shares in your company, your financial accounts need to reflect the funds (or in kind) received as equity. Each time you create a share issue, Equityspace it will automatically post a journal in Xero to reflect the correct amounts in your company's relevant equity accounts.
Configuring and using Xero with Equityspace requires some accounting knowledge. If you are unsure, we recommend consulting your accountant. You can find advisors experienced with Equityspace and Xero on our website.
Connecting to Xero
Go to your company's Settings tab > Xero click on Connect to Xero
You'll be prompted to log in to Xero if you aren't already logged in. Once logged in, you will be prompted to authorize the connection between Equityspace and Xero.
Select the correct Xero organisation and click 'Allow access'
If your Xero organisation is successfully connected it will say Active and the name of the Xero organisation will be displayed.
If your Xero connection has been disconnected for any reason the status will say Disconnected. In the event of a disconnection all company Administrator users will receive an email alerting them.
Restoring the Connection
The connection can be restored by clicking on Reconnect. You will be prompted to go through the same connection steps outlined above.
Disconnecting (and reconnecting to another Xero organisation)
If you need to remove the connection to Xero (i.e. you need to connect to a different company in Xero), simply click on Delete. The connection will be removed and you can choose to reconnect at any time.
Annual ASIC Invoices (Bills)
ASIC Fee Expense Account - This will be the account that the ASIC fee expense will be put to on the bill posted to Xero. It may be called Filing Fees, ASIC Fees or something similar.
ASIC Fee Invoice Status - This will be the status of the Bill when it is posted in Xero. Bills can be posted as:
- Draft - Will not post to the ledger in Xero. You can edit, delete and approve the bill in Xero.
- Awaiting Approval - Will not post to the ledger in Xero. You can edit, delete and approve the bill in Xero.
- Approved - Will be posted to the ledger in Xero. You can edit or void the bill in Xero if necessary.
Share Capital Journals
Journal Status - This will be the status of the Journal that will be posted to Xero. Journals can be posted to Xero as:
- Draft - Will not post to the ledger in Xero. You can edit, delete and approve the journal in Xero.
- Posted - Will be posted to the ledger in Xero. You can edit or void the journal in Xero if necessary.
Share Subscriptions Receivable - This is the account that will be debited to reflect the value of the cash (or in kind) that has been paid for the shares issued.
Share Class Capital Accounts - This is the account that will be credited to reflect that value of the share capital for the share class.
A Share Class Capital Account will show for each of the share classes set up in Equityspace. You can choose the same Xero account for each share class OR if you want the capital for each share class represented separately in Xero you can choose a different Xero account for each class.
Once the integration is set up, transactions will be automatically posted to Xero whenever you add an ASIC Annual Review or Issue New Shares. Refer to the relevant help article for more information.