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Xero Accounting Software #7 Adjusting & Reversing Entries

Enter and analyze month end adjusting and reversing entries in Xero Accounting software

Created byRobert Steeleworkspace_premiumBest Instructor
BeginnerUpdated Nov 13, 2023

What You'll Learn

  • check_circleAnalyze why adjusting entries are needed
  • check_circleAnalyze why reversing entries are needed
  • check_circleEnter common adjusting entries observing the impact on the financial statements
  • check_circleEnter reversing entries where needed observing the impact on the financial statements and normal data input process

About This Course

This is the 7th course in a comprehensive series of courses about Xero Accounting software. We will focus on month-end adjusting entries, which are often needed to make the bookkeeping correct and in accordance with the accounting method used (often the accrual method) as of the month-end or year-end.

As we enter each adjustment, we will analyze the impact on the financial statement and assess whether we should enter a reversing entry. We will enter reversing entries where appropriate, and analyze the impact on the financial statements and bookkeeping process.

Learn how to identify and record necessary adjustments for timing differences, handle complex scenarios involving sub-ledgers and depreciation, and understand when reversing entries are needed to simplify subsequent bookkeeping. The course covers practical application within Xero, including:

  • Recording and reversing Accrued Interest.
  • Adjusting for Accounts Receivable & Sales cutoffs.
  • Making adjustments for Prepaid Insurance.
  • Calculating and posting Depreciation.
  • Breaking out and reversing Short-Term/Long-Term Loan portions.
  • Leveraging Xero's journal entry and reporting features for adjustments.

Develop the skills to confidently perform these vital period-end procedures, maintain clean data, and generate accurate financial reports using Xero.

Course Content

1 activity • 12 videos • duration: 4h 9m

remove
Section 112 videos • 4.2 hours
  • videocamOptions for Starting Data.
    Duration 6:07
  • videocam10120 Adjusting Entries & Reversing Entries Introduction
    Duration 32:16
  • videocam10180 Adjusting Entry Accrued Interest
    Duration 23:52
  • videocam10220 Reversing Entry Accrued Interest
    Duration 23:20
  • videocam10260 Adjusting Entry Accounts Receivable Sales
    Duration 29:13
  • videocam10300 Reversing Entry Accounts Receivable Sales
    Duration 24:15
  • videocam10340 Adjusting Entry Prepaid Insurance
    Duration 14:26
  • videocam10380 Adjusting Entry Depreciation
    Duration 25:00
  • videocam10400 Adjusting Entry Unearned Revenue Customer Deposit
    Duration 16:58
  • videocam10465 Adjusting Entry Loan Payable Short-Term and Long-Term Portions
    Duration 19:02
  • videocam10467 Reversing Entry Loan Payable Short-Term and Long-Term Portions
    Duration 11:35
  • videocam10480 Adjusting Entry & Reversing Entry Journal Reports
    Duration 23:50

Your Instructor

Robert Steele

CPA, CGMA, M.S. Tax, CPI

menu_book294 courses
star1,974 reviews

Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his. Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA). Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software. In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible. Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks. Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business. Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster. Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts. The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video. Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like CPDformula.

Credit Information

Is this course eligible for my CPD requirements as a Canadian CPA?

Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.

Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.

What Students Are Saying

5.0 out of 5
Student's Choice
10 reviews
  • HL
    Hugh L.
    starstarstarstarstar

    This was a good match. I have implemented Xero at my Charity office and for the Church. This allows me to use the same set of skills in two places without needing to learn another software suite!@

Frequently Asked Questions

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