Book | Link Solutions Limited

Everything you need to know about Xero Practice Manager

If you want to become an expert running an accounting practice, this book is for you.

Over 900 copies sold worldwide.

Extended Table of Contents

Introduction		7
Foreword		8
Chapter 1: Why Xero		10
A grim past		11
Single ledger		11
Ledgers linked to jobs		12
Connected apps		12
Big-4 level insights available for everybody		12
Chapter 2: Industry Billing Models		14
Types of billing engagements		15
Billable fees		16
Quoted fees		16
Fixed-price agreements		16
Method 1: In-advanced		17
Method 2: Contract-period		18

Method 3: In-period		19
Selecting a method		21
Chapter 3: Revenue Streams		22
Services		23
Revenue steams		23
Compliance		23
Advisory		24
Chapter 4: Practice Settings		26
Practice settings		27
Task vs staff billable rates		27
Allocation		28
Cost admin		28
Time		28
Ordering		29
Staff settings		30
Base rates		30
Overhead apportionment		30
Best of both worlds		31
Billable rates		32
Considerations for billable rates		32
Task settings		34
Keep it simple		34
Sub-tasks in XPM		34
Secret cause		35
Must-have tasks		35
Must-not tasks		35
Task-based reporting		37
Job costs		38
Client settings		38
Clients vs client groups		38
Setting up client groups		39
Client vs contacts		39
Business structures		39
Client types		40
Tax agent		40
Job settings		40
Job categories		40
Filtering your WIP balance		40
Revenue streams		41
Job states		43
Job templates		45
Xero integration settings		45
Income and cost of sale accounts		45
Clients, suppliers and contact person		46
Invoices		46
Invoice details: Invoice format		46
Option A: Job or miscellaneous invoice total		46
Option B: Individual tasks and costs		47
Option C: Time sheet notes		48
Which option is best?		48
Invoice payments		48
Purchase receipts		49
KPI/WIP reporting		49
Custom templates: Document designs		49
Where invoices are sent from		50
Invoice designs		50
Quote designs		50
Tax letters		51
Invoice statements		51
Purchase orders		51
Chapter 5: Integrations		52
Xero + XPM		54
Clients and suppliers		54
Purchase orders		55
Invoices		55
Practice Ignition + XPM		55
Link Reporting + XPM		56
Chapter 6: Creating Engagements		57
What is an engagement?		58
Advice on engagements		58
Chapter 7: Setting up Engagements		61
General guidelines for setting up engagements		62
Overview of jobs		62
Types of annual engagements		63
Selecting the client		64
Start dates and durations of jobs		64
Signing up new clients to fixed-price agreements		65
In-period tasks for fixed-price agreements		66
Job budgets		67
Allocating job managers		67
General questions from clients		67
Option 1: New job		68
Option 2: General queries task		68
Option 3: General queries job		68
Internal jobs		68
Setting up engagements in XPM		70
Job templates		70
Xero subscriptions of job templates		71
Setting up time-charge agreements		72
Setting up fixed-price agreements		73
Summary		74
Setting up engagements in Practice Ignition		74
Benefits of using Practice Ignition		74
How to set up Practice Ignition		75
General settings in Practice Ignition		75
Creating your engagement letter terms		76
Adding payment services to Practice Ignition		77
Linking staff members in Practice Ignition		77
Setting up integrations with Practice Ignition		77
Setting up services in Practice Ignition		78
Creating proposals for annual engagements		80
Creating proposals for one-off engagements		82
How to roll out Practice Ignition for your practice		82
Summary		83
Chapter 8: Project Management		84
Setting up jobs		85
Job budgets		85
Estimated times		86
Job managers		87
Managing jobs		87
Job set-up process templates		87
Time sheet methods, frequency and importance		87
Reviewing time sheet completion		91
Updating job states		92
Internal time		93
Travel time		94
Identifying non-billable time sheets		94
Job and task notifications		95
Managing your job list		95
1. Jobs I'm managing		95
2. Jobs in progress custom report		96
3. Open job report		96
Job close-out		97
Mark tasks as completed		97
Costs are marked as actuals		97
All invoices are captured		97
WIP wash-up		98
Change job state to completed		98
Chapter 9: Outsourcing and Disbursements		99
Outsourcing vs subcontracting		100
Outsourced services		100
Estimating outsourced service provider fees		101
Estimating outsourced costs		103
Capturing outsourced service provider fees		104
Subcontracted services		104
Adding subcontractors to your XPM		105
Outsourcing decision tree		105
Managing Xero subscriptions		106
Managing the Xero accounts payable		107
Managing customer repeating invoices		108
Managing actual subscription costs		108
Managing disbursements		109
Staff reimbursement of expenses		110
Chapter 10: Invoicing		111
Time-charge agreements		112
Invoice sync with Xero		113
Option A: Job or miscellaneous invoice total		113
Option B: Individual tasks and costs		114
Option C: Time sheet notes		114
Which option is best?		114
Invoicing in XPM		115
Progress invoice		115
Final invoice		116
Remove from invoice list		116
Methods of invoicing		117
Time and cost invoices (with write-offs to be applied to specific time sheets)		117
Time and cost invoices (with write-offs to be apportioned across all time sheets)		117
Quoted invoices (with write-offs to be applied to specific time sheets)		118
Quoted invoices (with write-offs to be apportioned across all time sheets)		119
Fixed-price agreements		120
Understanding the invoice sync with XPM		120
Setting up the invoice sync with XPM		120
What if invoices have not synced correctly?		121
Practice Ignition		123
Quoted work in Practice Ignition		123
Fixed-price agreements in Practice Ignition		124
Chapter 11: Rolling Over Jobs		126
Renewing engagements with XPM		127
Using the client order number		128
Using the job number		129
Renewing engagements with Practice Ignition		129
Re-engaging clients		130
Job rollover		130
Chapter 12: Scheduling and Capacity		132
Custom reports for scheduling		133
Job task estimated times		134
Standard tasks		134
Variable tasks		134
Adding estimates times to job templates		136
Creating your scheduling reports		137
Scheduling report		137
Monthly capacity report		139
Staff workflow report		140
Capacity vs productivity		141
Your scheduling process		142
Chapter 13: Management Reporting for your Practice		143
Types of reporting		144
Job reporting		145
Client reporting		146
Team reporting		146
Practice reporting		146
Job reporting		146
Remaining time		147
Remaining budget		148
Projected write-offs		149
Days till due		150
Client reporting		151
Client profit		152
Client write-offs		155
Average hourly rate		156
Client performance		156
Team reporting		157
Productivity		158
Staff write-offs		160
Invoiced by staff		163
Staff profitability (ROI)		164
Average hourly rate		165
Practice reporting		167
Measuring WIP		167
Billable WIP		168
Negative WIP		174
Practice productivity		176
Practice write-offs		179
Practice average hourly rate		184
Revenue stream breakdown		187
Improving practice performance example		190
Practice reporting rhythms		193
Weekly		194
Open Jobs		194
WIP Movements		195
Individual Performance		195
Monthly		196
WIP Performance		196
WIP Movements		196
Practice Performance		197
Service Profitability		197
Team Performance		197
Client Profitability		198
Biannually		199
Individual Performance		199
Chapter 14: Common Issues and their Solutions		202
Timesheets have not been entered		203
Background of this issue		203
How to resolve this issue		203
Timeframe to implement this solution		203
Timesheets and invoices in seperate jobs		203
Background of this issue		203
How to resolve this issue		204
Timeframe to implement this solution		204
Individual jobs have been set up for each task		204
Background of this issue		204
How to resolve this issue		205
Timeframe to implement this solution		205
Job categories do not reflect engagement types		205
Background of this issue		205
How to resolve this issue		206
Timeframe to implement this solution		206
Invoices for fixed-price agreements are not flowing back to XPM		206
Background of this issue		206
How to resolve this issue		206
Timeframe to implement this solution		207
Base rates are not loaded		207
Background of this issue		207
How to resolve this issue		207
Timeframe to implement this solution		207
WIP against internal jobs		207
Background of this issue		207
How to resolve this issue		208
Timeframe to implement this solution		208
WIP against completed jobs		208
Background of this issue		208
How to resolve this issue		208
Timeframe to implement this solution		209
Estimated times not entered against tasks		209
Background of this issue		209
How to resolve this issue		209
Timeframe to implement this solution		209
Budgets not loaded against jobs		209
Background of this issue		209
How to resolve this issue		210
Timeframe to implement this solution		210
Disbursements not loaded against jobs		210
Background of this issue		210
How to resolve this issue		210
Timeframe to implement this solution		210
Jobs are not being closed		211
Background of this issue		211
How to resolve this issue		211
Timeframe to implement this solution		211
Xero repeating invoices not linked		212
Background of this issue		212
How to resolve this issue		212
Timeframe to implement this solution		212
Duplicate contacts between XPM and Xero (blue)		212
Background of this issue		212
How to resolve this issue		212
Timeframe to implement this solution		213
Reconciling XPM accounts receivable		213
Background of this issue		213
How to resolve this issue		213
Timeframe to implement this solution		213
If I edit an invoice value in Xero, will it update in XPM?		213
Background of this issue		213
How to resolve this issue		213
Timeframe to implement this solution		213
Xero invoices are not arriving in XPM		214
Background of this issue		214
How to resolve this issue		214
Timeframe to implement this solution		216
Practice Ignition not deploying invoices to Xero		216
Background of this issue		216
How to resolve this issue		216
Timeframe to implement this solution		216
Practice Ignition not deploying jobs to XPM		216
Background of this issue		216
How to resolve this issue		217
Timeframe to implement this solution		217
Xero creating an adhoc job in XPM		217
Background of this issue		217
How to resolve this issue		218
Timeframe to implement this solution		218
The Linked Practice		219
Glossary		220
Acknowledgements		221

Physical Address

144 Riverbank Road
Otaki 5512
New Zealand

Phone Number

NZ: 0800 159 672
AU: 1800 613 188

Contact Email

contact@linkhq.com

EVERYTHING YOU NEED TO KNOW ABOUT

Everything you need to know about Xero Practice Manager

Extended Table of Contents

Physical Address

Phone Number

Contact Email

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