Transactions flow on one direction across the Xero plug-in and that is from Actionstep to Xero. The only information that flows from Xero to Actionstep is configuration settings, and account balances (for checking if payments can be made, not displayed in Actionstep).
The Golden Rule
What you enter in Actionstep is copied through to Xero.What you enter in Xero stays in Xero.
What to enter in Actionstep
You will need to enter all matter-related transactions inside Actionstep. This includes customer billing, expenses, and all trust account transactions. These transactions will be saved to the matter in Actionstep and simultaneously posted through to Xero.
Enter all Matter-related transactions in Actionstep (income, expenses, trust account transactions, payments, disbursements).
You can also enter non matter-related transactions in Actionstep and they will still post through to Xero but this is entirely optional.
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Actionstep will post through to Xero:
Actionstep will not push through to Xero any of the following:
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What to enter in Xero
You can enter all non-matter related transactions directly into Xero, or you can just as easily enter these into Actionstep and they will post through to Xero. So it's really up to personal preference. Please note the warning above. All withdrawals and deposits and General Journal Entries will have to be entered into Xero. If the are entered into Actionstep they will not flow through to Xero.
Because ActionStep could only contain a subset of the accounting information you must do your general account bank reconciliations, tax returns, and financial statements in Xero.
Below is a quick guide to which parts of your process go into which system.
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You must use Actionstep to manage all trust account transactions because not all trust transactions affect the bank balance and thus will not be posted through to Xero. An example of a trust transaction that does not affect the bank balance is an inter-matter transfer. In this case Actionstep simply adjusts the "claim" each matter has to the funds held in trust.
Actionstep enforces the trust accounting rules such as always maintaining a positive trust surplus, maintaining a receipts register, keeping an audit trail, etc.
Use Actionstep for all client billing. Actionstep automatically keeps track of unbilled time, disbursements and expenses coded to matters and allows you to add these to invoices. Invoices are initially created as "Drafts" but once you save them they will be posted through to the general ledger and sent through to Xero. Invoices cannot be edited once they have been sent through to Xero.
Where do I print my Invoices; Actionstep or Xero?
The line-item detail for invoices is maintained in Actionstep. When Actionstep posts an invoice through to Xero the line items are grouped by account code, this you will be able to display more detail on your invoices if you print them in Actionstep. Furthermore you can configure your billing preferences in Actionstep which makes it easier to create invoices using the correct layout.
In a nutshell you can print your invoices from either system but you will have more options if you print them from Actionstep.
Xero Integration - Entering Expenses
Enter all matter-related expenses in Actionstep as supplier invoices. You can enter supplier invoices related to a single matter inside that matter. For supplier invoices that have line items that might apply to several matters you should enter these in the Supplier Invoice page in Actionstep Accounting and code each line item to the appropriate matter. These will then show up the next time you do your client billing.
General and administrative expenses should be entered directly into Xero.
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Xero requires line items in supplier invoices to be coded to expense accounts. While you can select an income account to code it to in Actionstep, Xero will not accept this when you try to save the invoice. |
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You may elect to not map these through to Xero and just have them in Actionstep for the purpose of recharging the client. This avoids system clashes when making a payment - and potential duplication of data. |
Xero Integration - Entering Disbursements
Disbursements are expenses against matters that are not directly related to a supplier invoices such as photo-copies, or postage. You should enter all matter-related disbursements into the associated matter in Actionstep. These will then show up the next time you do your client billing.
Xero Integration - Bank Reconciliations
One of the great features of Xero is the online banking integration!
You must do your practice bank reconciliations in Xero because Actionstep may only contain a subset of the bank transactions. Please be sure not to auto-create any transactions in Xero that are matter-related during the reconciliation process.
However, TRUST ACCOUNT reconciliations MUST be done in Actionstep as they feed the Trust reporting
Xero Integration - Financial Statements
You must run all your financial statements from Xero since ActionStep may only contain a subset of all the transactions. However, you may find the Actionstep reporting useful to split these into a more detailed analysis.
Xero Integration - Tax Returns
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See updated article in actionstep Help Center: |