How to Run Financial Reports in Xero
What Is the Quick Summary?
You can run financial reports in Xero Accounting Software by going to Reporting, then All reports, choosing the report you need, setting the date range and options, and selecting Update. You can then export the result to PDF, Excel, or Google Sheets, or save it as a custom report.
This guide explains which reports matter most, how to set them up, how to read them, and how to share them. You will also learn how to customise reports and fix common data problems before you rely on the numbers.
Key takeaways:
- The Balance Sheet, Profit and Loss, and Statement of Cash Flows give you the core financial picture.
- Accurate reports depend on up-to-date bank reconciliation and approved transactions.
- You can customise, export, and reuse reports to save time every month.
Why Should You Run Financial Reports in Xero?
Financial reports turn raw transactions into decisions. They show whether your business earns a profit, how much cash you hold, who owes you money, and what you owe others. Owners, accountants, lenders, and tax authorities all rely on these figures.
Xero Accounting Software builds reports directly from your ledger, so every approved invoice, bill, and reconciled bank transaction flows into them automatically. As a result, you avoid manual spreadsheets and cut the risk of copy-and-paste errors.
What Business Decisions Do Reports Support?
Reports help you answer practical questions, such as:
- Can you afford to hire a new employee or buy equipment?
- Which customers pay late, and how much do they owe?
- Which expenses grew faster than your sales?
- How much tax should you set aside?
- Does your business have enough cash for the next quarter?
Who Needs Access to Reports?
Business owners, bookkeepers, and accountants usually need full access. Xero user roles control who can view or run reports, so you can give a manager access to sales figures without exposing payroll details. Review roles under Settings, then Users before you share your organisation.
Which Financial Reports Does Xero Offer?
Xero groups its reports by purpose. You can find them under Reporting, then All reports. The table below summarises the most useful ones.
| Report | What it shows | Who uses it most |
|---|---|---|
| Profit and Loss | Income, costs, and net profit over a period | Owners, accountants |
| Balance Sheet | Assets, liabilities, and equity on a date | Owners, lenders, accountants |
| Statement of Cash Flows | Cash coming in and going out | Owners, finance managers |
| Aged Receivables Summary | Money customers owe you, grouped by age | Credit control staff |
| Aged Payables Summary | Money you owe suppliers, grouped by age | Accounts payable staff |
| Trial Balance | Balances of every account in your chart | Accountants |
| Account Transactions | Every transaction in selected accounts | Bookkeepers, auditors |
| Bank Reconciliation Summary | Differences between bank and books | Bookkeepers |
| Sales tax or VAT report | Tax collected and paid | Tax filers |
What Is the Difference Between the Core Statements?
The Profit and Loss report covers a period of time and answers, “Did we make money?” The Balance Sheet captures a single moment and answers, “What do we own and owe?” The Statement of Cash Flows reconciles profit with actual cash movement and answers, “Where did our cash go?” You need all three for a full view.
Does Your Region Change the Available Reports?
Yes. Xero adapts tax and compliance reports to each country, so a user in the UK may see VAT reports while a user in Australia sees GST reports. Check Xero Central for the reports that apply to your region.
How Do You Run a Financial Report in Xero?
The process stays almost identical for every report, which makes it easy to learn. Xero Accounting Software keeps the controls in the same place on each screen.
What Are the Step-by-Step Instructions?
- Select Reporting from the main menu.
- Choose All reports.
- Click the report you want, such as Profit and Loss.
- Set the Date range or the As at date.
- Select Compare with if you want to see earlier periods side by side.
- Choose the Accounting basis, either accrual or cash, if the option appears.
- Apply filters, such as tracking categories.
- Click Update to refresh the report.
Because the report updates only when you click Update, always check the date and filters before you share the result.
How Do You Choose the Right Date Range?
Use a date range that matches your question. For a monthly review, choose the first and last day of the month. For a financial year, choose the year’s start and end. You can compare periods, such as this month and last month, to spot trends. In contrast, a Balance Sheet needs only one date, because it shows a snapshot.
How Do You Read the Profit and Loss Report?
The Profit and Loss report, sometimes called an income statement, is the report most owners run first.
What Sections Does It Contain?
- Trading income: Revenue from sales and services.
- Cost of sales: Direct costs of the goods or services you sell.
- Gross profit: Trading income minus cost of sales.
- Operating expenses: Overheads such as rent, wages, and software.
- Net profit: What remains after all expenses.
How Do You Spot Problems Quickly?
Compare this period with a previous one. A sudden spike in an expense category may point to a miscoded transaction or a genuine cost increase. Likewise, unusually low income may signal unsent invoices. Click any figure to drill down into the underlying transactions and verify them.
What Is the Difference Between Accrual and Cash Basis?
Accrual reporting records income and expenses when you invoice or receive a bill. Cash reporting records them when money actually moves. Choose the basis that matches your tax and accounting rules, and confirm the choice with your accountant. Switching between them can change your profit figure for the period.
How Do You Read the Balance Sheet?
The Balance Sheet shows your financial position on a specific date. Because it follows the accounting equation, assets always equal liabilities plus equity.
What Should You Check First?
Look at these lines before anything else:
- Bank accounts: Do the balances match your actual bank statements?
- Accounts receivable: Does it agree with the Aged Receivables report?
- Accounts payable: Does it agree with the Aged Payables report?
- Retained earnings: Does it reflect the profit from earlier years?
When these figures do not agree, the cause is often an unreconciled bank line or a manual journal. Fix it before you share the report.
Why Does the Balance Sheet Sometimes Look Wrong?
The most frequent causes include unreconciled bank transactions, bills or invoices left in draft, and incorrect opening balances. Therefore, reconcile your accounts and approve outstanding items before you run the report for an important deadline.
How Do You Run Aged Receivables and Aged Payables Reports?
These two reports help you manage cash flow day to day.
What Does Aged Receivables Tell You?
The Aged Receivables Summary lists each customer and the amount they owe, grouped into columns such as current, 30 days, 60 days, and older. Use it to decide whom to chase. Open a customer’s line to see the exact invoices, and then use the invoice reminder tools to follow up.
What Does Aged Payables Tell You?
The Aged Payables Summary shows what you owe your suppliers, with the same age buckets. Use it to plan payment runs and to avoid late fees. You can also negotiate better terms with suppliers when the report shows a pattern of overdue amounts.
How Do You Customise a Report in Xero?
Standard reports cover most needs, yet you may want to tailor them. Xero Accounting Software offers several ways to do this.
How Do You Filter and Compare Data?
Use the controls at the top of the report to filter by date, tracking category, or account. For example, you can run a Profit and Loss report for one department or project by selecting a tracking category. You can also add comparison columns to see change over time.
How Do You Save a Custom Report?
After you set the layout, save the report to your Custom reports list. Many Xero plans let you add or remove rows, group accounts, and add notes. Once you save the layout, you can rerun it at any time without rebuilding it. Plan and region limits apply, so confirm the options available to you in your organisation.
Which Customisation Options Help Most?
| Option | Benefit |
|---|---|
| Tracking categories | Split results by department, project, or location |
| Comparison columns | Reveal trends across months or years |
| Custom layouts | Show only the rows your audience needs |
| Report notes | Add context for lenders or board members |
| Budget comparison | Compare actual results with your plan |
How Do You Export and Share Financial Reports?
Reports have little value if the right people never see them. Fortunately, Xero provides several sharing options.
How Do You Export a Report?
After you run the report, select Export and choose PDF, Excel, or Google Sheets. PDF works best for sharing a fixed version with lenders or investors, while Excel suits further analysis. Check the exported file before you send it, because it shows only the data that matches your current filters.
How Do You Print or Email a Report?
Use the print option to produce a paper copy, or save the PDF and attach it to your own email. For monthly packs, build a consistent routine: run the same set of reports on the same day, export them, and store them in a shared folder.
Can You Publish a Report for Your Team?
With the right role, you can save reports into a reporting pack or share them with your accountant by adding them as a user. Advisers can then review the same live data, which reduces back-and-forth emails.
How Do You Make Sure Your Reports Are Accurate?
Reports reflect the data you enter. Hence, clean data produces trustworthy reports.
Which Checks Should You Complete Before Running Reports?
- Reconcile every bank account up to the report date.
- Approve all draft invoices and bills for the period.
- Record all payments and allocate credit notes.
- Review manual journals and repeating transactions.
- Set a lock date after you finalise a period.
- Compare the Balance Sheet bank lines with your bank statements.
How Often Should You Run Reports?
| Report | Suggested frequency |
|---|---|
| Profit and Loss | Monthly |
| Balance Sheet | Monthly and at year end |
| Aged Receivables | Weekly |
| Aged Payables | Weekly or before each payment run |
| Cash flow statement | Monthly or quarterly |
| Tax report | Each filing period |
What Should You Remember About Running Financial Reports in Xero?
Running a financial report in Xero takes only a few clicks: open Reporting, pick the report, set the date and filters, and click Update. Start with the Profit and Loss, Balance Sheet, and Statement of Cash Flows, and add aged reports for daily cash management. Then customise, export, and share the results with the people who need them.
Accurate reports depend on accurate data, so reconcile and approve transactions first. With that routine in place, Xero Accounting Software gives you fast, reliable insight into your finances and saves hours of manual work. For the latest official guidance, consult Xero Central, and ask your accountant when you need help interpreting the figures.
Frequently Asked Questions
Select Reporting from the main menu, then choose All reports. Xero lists reports by category, and you can search for a specific name if you do not see it right away.
The Profit and Loss report shows income and expenses, not cash balances. It also uses the accrual basis by default in many organisations, so unpaid invoices and bills appear even though no cash has moved. Check the Balance Sheet and Statement of Cash Flows for cash positions.
Yes. After you run a report, select Export and choose Excel, PDF, or Google Sheets. The file reflects the filters and date range you used, so confirm them before you share it.
