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Anyone Use Xero?

Discussion in 'Money, Accounts & Finance' started by sam81, Feb 15, 2017.

  1. sam81

    sam81

    Joined:
    May 8, 2012
    Messages:
    177
    Hi,

    anyone use Xero to do them accounting (ebay/amazon sellers) ?

    I will like ask few information.
  2. bluenose

    bluenose

    Joined:
    Nov 3, 2008
    Messages:
    152
    Hi

    Yes I do what would you like to know?
    Cody likes this.
  3. sam81

    sam81

    Joined:
    May 8, 2012
    Messages:
    177
    Hi,
    thanks for back to me.
    I got some information in meantime, I see we can full connect paypal and bank account with.

    Regarding Amazon I see there is not connection directly for it (I see only other company to pay monthly), it easy to do add it manually ? (Obviously I have to calculate Vat manually for item that have not standard Vat).

    Cheers
    Cody likes this.
  4. bluenose

    bluenose

    Joined:
    Nov 3, 2008
    Messages:
    152
    Hi,

    Yes I do Amazon manually, I am not VAT registered so don't have that complication, when amazon deposits hit my bank account I just register is as a sale, it is very easy to do literally takes seconds.

    Yes I connect PayPal and my business bank account and every transaction is picked up, it is a bit fiddly setting this up but once done its done for good.

    I think Xero used to do a free trial worth trying out if the offer is still going.
  5. sam81

    sam81

    Joined:
    May 8, 2012
    Messages:
    177

    Thanks!

    Yes I am using the trial from yesterday!!

    About Amazon, when you receive deposits in your bank account, you register it as sales in, but regarding the full amount you sell (as deposit plus 15% fees), you register it in sales pages?
  6. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,441
    As you are VAT registered you can't really use that method as you don't know how much of that total is VATable.

    Unless you just assume it's all VATable but then you will probably be paying too much VAT to HMRC.
  7. paulbrown

    paulbrown

    Joined:
    Jul 8, 2010
    Messages:
    417
    You need to record the full total of the sale including postage as vatable, then the amazon fees as an expense which you can not reclaim VAT from as they are based in Luxembourg I believe. You can not just take the amount received by Amazon as vatable sales as you would be under paying VAT.

    However when you have registered with Amazon as a VAT registered business then they will take VAT off their charges, this is 15% as it is Luxembourg's rate.
    sam81 likes this.
  8. paulbrown

    paulbrown

    Joined:
    Jul 8, 2010
    Messages:
    417
    Your not doing it right if you simply work the VAT from deposits from Amazon, you will be under paying VAT. You need to pay VAT on the Full sale value not the deposited amount, the Amazon fees are not vatable and need to be posted seperately as a non vatable expense. I would correct going forward if I were you, if you were to have a VAT inspection, HMRC would likely pick up on this.
    sam81 likes this.
  9. sam81

    sam81

    Joined:
    May 8, 2012
    Messages:
    177
    Yes this right.
    15% Fees is expenses No Vat.
    Vatable is full total of sales.

    I mean in Xero, there is another page where we can add the total of our sales ?

    Because we can not do it only with bank reconciliation as this is not the toal that we sell, as it is the amount without fees.
  10. paulbrown

    paulbrown

    Joined:
    Jul 8, 2010
    Messages:
    417
    I don't use Xero, but I can imagine you split the monies received from Amazon between sales and expenses when it appears on the automatic bank feed?
    Either that or if you can't delete the transaction when it shows and post the sale as a bank receipt for the total sales and post the total fees as bank purchase. The total of the sales less the amazon fees should agree to the money received from Amazon, you can then tick them both in your reconciliation to agree the bank.
  11. sam81

    sam81

    Joined:
    May 8, 2012
    Messages:
    177
    When it apper is only the sales, as Amazon already withheld expenses, but if we put 20% in it, vat is wrong (as not total of sales).

    I think I need add full total sales as cash (with vat), fees in expenses as cash, bust still need sort how arrange vat in bank reconciliation.

    Maybe I am wrong to understand something!! :(

    Now I am sorting out for paypal...I can add it as bank...finger cross!
    Major problem for it is sort quickly for international sales as free of vat.

    What are you use?
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