Xero Bookkeeping Services

Xero bookkeeping made simple

If you’re looking for an easier way to manage your business finances, Xero is one of the UK’s leading cloud accounting packages. As a Xero L1 certified associate, Littlefoot Bookkeeping Services can help you set up, use and get the most from Xero, whether you’re moving from spreadsheets or changing from another accounting system.

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Whether you’re a sole trader, limited company or partnership, we can help you keep your bookkeeping accurate and up to date.

Why choose Xero?

Many small business owners choose Xero because it’s designed to make bookkeeping simpler.

Some of its most popular features include:

  • Secure cloud-based access from anywhere
  • Bank feeds that automatically import transactions
  • Easy invoice creation and online payment options
  • Capture receipts using the mobile app
  • Simple VAT returns
  • Real-time financial reports
  • Multi-user access for you and your bookkeeper
  • Integration with hundreds of business apps including payroll, payment providers and stock management
  • JAX built in ai feature

Because your records are updated regularly, you’ll always have a clearer picture of how your business is performing.

Example Xero Dashboard showing company financial information
Example of Xero Dashboard

Making Tax Digital (MTD)

If you’re self-employed or a landlord, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) means you’ll eventually need software that can keep digital records and submit updates directly to HMRC. It’s already live for anyone with a gross income over £50,000, and it will extend to £30,000 from April 2027 and £20,000 from April 2028.

Xero is fully MTD-compatible, so setting up your bookkeeping in Xero now means you’re ready ahead of your MTD start date rather than scrambling when it applies to you. We can help you work out when MTD applies to your business and get Xero configured correctly from the outset.

Using Xero can help you:

  • Keep digital accounting records
  • Submit VAT returns under MTD
  • Prepare for future MTD requirements for Income Tax
  • Reduce manual data entry
  • Keep your records organised throughout the year

As your bookkeepers, we can ensure your records remain accurate, and your submissions are completed correctly and on time.

Why we recommend Xero

Dashboard: The main screen gives you an instant view of your bank balances, outstanding invoices, bills, and expenses. You can customise it to show whatever matters most to your business at a glance.

Cloud-based, so nothing to install: Xero runs entirely online, so there’s no software to install, and you can log in from any device with an internet connection. It’s built with strong security in mind. If you’re registered with us and run into a problem, we can log in ourselves to take a look and either advise you or sort it directly.

Reporting: Xero offers a wide range of reports, all straightforward to run and export. If we’re handling your bookkeeping, we’ll produce the relevant reports at the end of each period, and you can view them yourself at any time from your own login.

Bank feeds: Xero connects directly to most UK banks, so your bank balance updates automatically and reconciling is quick. Built-in matching rules mean you don’t have to repeat the same reconciliation task every month, saving real time.

The Xero app: For anyone often away from a desk, the free Xero app lets you create and email invoices on the spot, and submit expense claims, including mileage and photographed receipts, as they happen rather than saving up a pile of paperwork for later.

Sales invoicing: Design your own invoices, email them straight to clients, and let customers pay online. Outstanding invoices are visible on your dashboard so nothing gets missed.

VAT: If you’re VAT-registered, Xero records and tracks your VAT throughout the quarter and produces your VAT return, ready to submit, at quarter-end.

JAX AI: Built-in AI tool to assist in finding transactions, building reports and an external AI tool.

Add-ons: Where Xero’s core features aren’t quite enough, there’s a wide range of third-party add-ons built by Xero’s partners to extend what it can do.

How we can help

We can support you with:

  • Setting up a new Xero account
  • Moving your records from spreadsheets or another accounting package
  • Regular bookkeeping
  • Bank reconciliations
  • VAT returns
  • MTD submissions
  • Invoice and bill processing
  • Management reports
  • Ongoing support and advice
  • Liaising with your accountant where required

Whether you want us to do all the bookkeeping or simply provide support when you need it, we can tailor our service to suit your business.

Getting started

Moving to Xero, or switching from your current software, is more straightforward than it looks. Here’s how we usually approach it:

  1. A quick chat. We talk through how your business currently handles its bookkeeping, whether that’s spreadsheets, another software package, or paper records, and work out what setup makes sense for you.
  2. Account setup. We create and configure your Xero account, including your chart of accounts, VAT settings if you’re registered, and bank feed connections.
  3. Bringing your data across. If you’re switching from existing software or records, we handle moving your historic data into Xero so nothing gets lost in the transition.
  4. Training, if you want it. Some clients want to run day-to-day invoicing themselves and hand the bookkeeping to us; others prefer we handle everything. Either way, we’ll show you around Xero so you’re comfortable with whichever parts you’ll be using.
  5. Ongoing support. Once you’re up and running, we’re on hand for questions, monthly bookkeeping, VAT returns, or anything else, whatever we’ve agreed together.

Most businesses are fully set up and working in Xero within a couple of weeks, sooner if your records are already in reasonable shape.

Is Xero right for your business?

Xero is suitable for many businesses, including:

  • Sole traders
  • Limited companies
  • Partnerships
  • Contractors
  • Freelancers
  • Consultants
  • Small retailers
  • Service businesses

If you’re unsure whether Xero is the best option, we’re happy to discuss your business and help you decide.

Why work with Littlefoot Bookkeeping Services?

As a Xero Partner, we have experience helping small businesses use Xero effectively.

We understand that accounting software can seem daunting when you’re starting out, so we explain everything in plain English and provide as much or as little support as you need.

Our aim is to make bookkeeping straightforward, so you can spend more time running your business.

Try before you commit

Not sure if Xero is right for your business? Xero offers a free 30-day trial, and you can be up and running within minutes using their built-in demo company, so there’s no need to spend hours entering your own data just to try it out.

Get in touch

If you’re thinking about moving to Xero or would like help with your existing Xero bookkeeping, we’d be happy to help.

Contact Littlefoot Bookkeeping Services to discuss your bookkeeping needs or arrange an initial conversation.