You can add details of your expenses directly to Xero to prepare for your Making Tax Digital for income tax quarterly update.
Log into Xero and click on the “Reconcile xx items” button
On the next screen, your bank transactions are shown on the left. On the right hand side, you can add details to the Who, What and Why boxes.
Who – type the name of the supplier/shop, then click New Contact (or click on the name of the supplier if it shows).
What – select the most appropriate category from the drop down menu. Don’t worry if you can’t see anything suitable, just select General Expenses.
Why – type in a description of what the transaction was for.
Then click the OK box in the middle – job done!
