What Is Bookkeeping? (And How To Do It Step-by-Step in Xero)

Bookkeeping doesn’t have to be complicated — but if you don’t understand your numbers, running a business becomes guesswork. In this video, I explain what bookkeeping is and how to do bookkeeping step-by-step using Xero, one of the most popular cloud accounting platforms for small businesses. Make bookkeeping easy with Xero and get started with a special offer, at the time of filming, for 90% off your first six months👉https://referrals.xero.com/whatisbookkeeping Whether you’re a small business owner, entrepreneur, or a beginner learning bookkeeping, this tutorial walks through the core concepts you need to understand your finances and keep your books organized. You’ll learn how to track income and expenses, categorize transactions, reconcile bank accounts, and run financial reports so you can clearly see how your business is performing. What You’ll Learn in This Video: ✔ What bookkeeping is and why it matters for small businesses ✔ The five key financial categories every business must track ✔ Cash vs accrual accounting explained simply ✔ How to set up your Xero accounting software ✔ How to build a Chart of Accounts ✔ How to categorize transactions and reconcile bank feeds ✔ How bank rules automate bookkeeping ✔ The three most important financial reports every business should review ✔ Common bookkeeping mistakes small businesses make Host: Elizabeth Parker Sponsor: Xero 📚 RESOURCES Complete Xero Tutorial: https://youtu.be/N1EcCnuMKGA ⌚ TIMESTAMPS 00:00 – Introduction 00:27 – What is Bookkeeping? 00:36 – Five Key Financial Categories 01:05 – Introduction to Xero 01:51 – Set-up Financial Settings 02:10 – Cash Basis vs. Accrual Accounting 03:42 – Connecting Bank Accounts 04:15 – Understanding the Chart of Accounts 05:50 – Categorizing Transactions 07:34 – Bank Reconciliation 07:50 – Bank Rules 08:42 – Revenue vs. Cash 09:01 – Reporting 10:09 – Common Bookkeeping Mistake and How to Avoid Them 11:05 – Xero Pricing 11:30 – Conclusion 📩 NEWSLETTER - Get the latest high-quality tutorial and tips and tricks videos emailed to your inbox each week: https://newsletter.kevinstratvert.com 🔽 CONNECT WITH ME - Official website: http://www.kevinstratvert.com - LinkedIn: https://www.linkedin.com/in/kevinstratvert/ - Discord: https://bit.ly/KevinStratvertDiscord - Twitter: https://twitter.com/kevstrat - Facebook: https://www.facebook.com/Kevin-Stratvert-101912218227818 - TikTok: https://www.tiktok.com/@kevinstratvert - Instagram: https://www.instagram.com/kevinstratvert/ 🎁 PARTNERS & DISCOUNTED OFFERS 💻 Hostinger | https://hostinger.kevinstratvert.com 📋 Notion | https://notion.kevinstratvert.com 💵 Quickbooks Online | https://qbo.kevinstratvert.com 🎙️ Voicemod AI Voice Changer | https://voicemod.kevinstratvert.com 🕵️ VidIQ | http://vidiq.kevinstratvert.com 🎒 MY COURSES - Go from Excel novice to data analysis ninja in just 2 hours: https://kevinstratvert.thinkific.com/ 🙏 REQUEST VIDEOS https://forms.gle/BDrTNUoxheEoMLGt5 🔔 SUBSCRIBE ON YOUTUBE https://www.youtube.com/user/kevlers?sub_confirmation=1 🙌 SUPPORT THE CHANNEL - Hit the THANKS button in any video! - Amazon affiliate link: https://amzn.to/3kCP2yz ⚖ DISCLOSURE Some links are affiliate links. Purchasing through these links gives me a small commission to support videos on this channel. The price to you is the same. #xero #bookkeeping #accountingsoftware