Configuring Account Codes
What are Account Codes?
In accounting, you cannot just say "I made $50." You must tell the system what kind of money it is. Is it sales revenue? Is it a tax payment? Is it a shipping fee?
"Account Codes" are the labels Xero uses to categorize this money. You need to map your EasyBiz data to these specific codes so Xero knows where to put your money.
đź“Ť Where to find this setting? Go to Settings > Business Portfolios. Click your business > Click the three dots for Xero > Settings. Scroll down to the Account Code Settings section.
How to Map Your Account Codes
Here is how to configure the most important ones:
- Products & Services (Revenue): This represents your main income from sales.
- Recommended: Map this to a Revenue account (e.g., Code 201).
- Important: Ensure this account in Xero has a Tax Rate applied (e.g., 9% GST). If you map it to a "Tax Exempt" account, your tax data will not sync correctly.
warning:
The "Code 200" Issue By default, Xero's Sales account (Code 200) is often set to "Tax Exempt (0%)". If you map to this code without checking, your invoices will sync without tax.
- Tax: This represents the sales tax you have collected.
- Recommended: Map this to your Tax Liability account (e.g., Code 820). This allows Xero to track what you owe the government.
- Rounding: This handles the tiny one-cent differences that occur when splitting bills or calculating discounts.
- Recommended: Map this to a Rounding Expense account (e.g., Code 860).
note:
The codes mentioned above (201, 820, 860) are standard examples. Your business might use different codes. Always check your Chart of Accounts in Xero to confirm the correct numbers for your specific business.
tip:
There are additional fields you can configure in EasyBiz, such as Sales Return, Surcharge, and Discount. For a detailed walkthrough on how to map these, please watch the guidance video above.