Here’s how to do it:
1. Go to the Bills to Pay Section:
- Log in to Xero and navigate to the “Business” tab.
- Select “Bills to Pay” to view all outstanding supplier bills.
2. Track Supplier Bills:
- In the Bills to Pay section, you can view a list of all unpaid bills.
- You can filter by due date, supplier, or status (e.g., awaiting approval, awaiting payment).
3. Mark Bills as Paid:
- Once you’ve settled a bill, click on the bill you wish to mark as paid.
- You can either enter the payment manually by selecting “Add Payment” and entering the payment details or use bank reconciliation to match the payment.
4. Bank Reconciliation:
- If your bank account is connected to Xero, Xero will automatically suggest matches for payments when you reconcile transactions.
- Go to the “Reconcile” tab and match your bill payments with bank transactions to mark them as paid.
5. Monitor and Manage Payment Status:
- Keep track of your payment history and ensure no outstanding bills are missed.
- Xero also allows you to set reminders for upcoming due bills to avoid late payments.
By following these steps, you can efficiently manage accounts payable and supplier payments in Xero.