# Insights

In addition to allowing you to slice and dice your Client data, Xavier applies a number of its own data analysis techniques and presents the findings up as Insights...

# Bank Reconciliation

Xavier uses a combination of Xero's Bank Statement Report data, bank transactions and payments to provide an interactive view across all of an organisation's bank accounts. The format loosely follows Xero's Bank Reconciliation Report, distinguishing between outstanding payments, receipts and unreconciled bank statement lines.

# Bank Account Summary

Bank Reconciliation Summary

# Total Unreconciled

This is the total number of unreconciled transactions, outstanding payments and outstanding receipts across all bank accounts. Below the summary boxes is also a card for the full Unreconciled Impact - this card will display the difference between the Statement Balance and the Xero Balance (you can click on the card for the detail).

# Net Assets

The Net Assets figure is a calculated balance of all transactions with the Account Class of ASSET minus all transactions with the Account Class of LIABILITY, up the the reporting date. This figure is also available as a metric on the Client List and Practice Dashboard. Xero Account Classes are shown below:

VAT Tracking

# Cash Position

The Cash Position figure is a consolidated statement balance of all bank accounts, on the reporting date set. This figure is also available as a metric on the Client List and Practice Dashboard.

TIP

Foreign bank account balances are converted to the base currency to produce this number - use as a guideline only, where this is a factor, and see below for more info.

# No. of Manual Feeds

Xavier detects which Bank Accounts are updated with Manual Feeds. The number of manual feeds is displayed in the summary, and those Bank Accounts will also have a small pink broken chain indicator next to their names in the cards below.

Bank accounts detected to have a working bank feed will have a small pink linked chain indicator next to their names. (You can hover over the indicator for more information.)

# Bank Accounts

Bank Reconciliation

Each Bank Account is contained within a card. Expanding this card displays three unreconciled categories; Outstanding Payments, Outstanding Receipts and Unreconciled Statement Lines. Expanding one of these categories allows you to see transaction-level detail in a flexible grid view. From each record, you can click straight into Xero to start the reconciliation process. The grid allows you to quickly order by the oldest records (useful if you are approaching month end), and also see/filter/group the records that are in a "locked" period.

Bank Reconciliation

# Foreign Currency Bank Accounts

Xavier detects when a bank account is in a different currency to the base currency of the organisation, and displays accordingly. There's a toggle that allows you to view the reconciliation totals for a bank account in either the native currency of the bank account or the base currency of the organisation.

Bank Reconciliation

TIP

Xavier does not have access to Xero's exchange rates, so the base currency calculated balances for a foreign currency may not always totally match up to the report in Xero - use as a guideline only.

More about exchange rates in Xero can be found in their support documentation.

# All Bank Statements

You can also hit the All Statements button at the top of the insight to work in a full sandbox-style grid with all bank statement records, not just the unreconciled ones.

Bank Reconciliation

Xero guidance on bank reconciliation can be found here.

# Duplicate Contacts

Duplicate Contacts

The results shown in this Xavier insight are your Xero contacts that we’ve identified as potential duplicates. This can happen if you create a new contact during the process of inputting an invoice or similar, and miss the fact that the contact already exists.

Review these, you may dismiss any which aren't true duplicates, or clicking the name of the contact will take you to Xero to amend them. The transaction count should give a good indication of which contact has had more activity.

Xero guidance on merging contacts can be found here.

# Dismissals

Each duplicate contact can be 'dismissed' - this means that Xavier will no longer count that combination of client names to be a potential duplicate. Dismissed items do not contribute to the Health Score. Any dismissed duplicates can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals.

You can dismiss multiple duplicates at a time by selecting 'Select All' above the list, or by using the circular checkbox on the right of the card (on the right of the Dismiss button) on all duplicates you would like to dismiss, and then click 'Dismiss (X) Suggestion(s)'.

# Duplicate Transactions

Duplicate Transactions

Here Xavier looks across invoices and bank transactions and highlights records that it thinks could be unwanted duplicates. This view allows you and your clients avoid embarrassing situations where you might inadvertently pay a supplier twice, or charge a customer twice. You can filter the check between Purchase and Sales transactions, and sort by contact Name, transaction Value or Date.

Each detected duplicate is presented in a card for the combination of Contact and Value (in this case, it is good to ensure your Duplicate Contacts are all cleaned up). Clicking on this card to expand it will show the transactions in a grid format with further information on the type, source and description. You can then click the links in this grid to see the transaction or invoice directly in Xero.

The Alert level on the Overview refers directly to the number of duplicate transactions relative to the total number of transactions in the reporting period.

# Sales Transactions

Duplicate sales transactions result in overstated revenue and unnecessary chasing of customers that have already paid. This can happen due to human error accidentally raising invoices that have already been raised, or from integrations with another system that can sometimes incorrectly pull in duplicates.

# Purchase Transactions

Duplicate purchase transactions can result in serious mistakes such as paying a supplier twice. Expenses might also be overstated for the period. Additionally, paid transactions sitting in Aged Payables are messy and can reflect badly on the standards of the accountant or bookkeeper. These can occur when there is a purchase invoice duplicate based on the same criteria as a sales invoice, or when the invoice is an Aged Payable, but reconciled in the bank using 'create transaction', creating both a bank transaction and an invoice against the same item.

# Dismissals

Dismissing duplicate transactions means that Xavier will no longer count that combination of invoices and transactions for that contact to be a potential duplicate. Dismissed items do not contribute to the Health Score. Any dismissed duplicates can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals.

You can dismiss multiple duplicates at a time by selecting 'Select All' above the list, or by using the circular checkbox on the right of the card (on the right of the Dismiss button) on all duplicates you would like to dismiss, and then click 'Dismiss (X) Suggestion(s)'.

# Multi-Coded Contacts

Multi-Coded Contacts

Each Invoice and Bank Transaction line item is assigned an Account Code and a Tax Code in Xero. The majority of the time, these codes should be consistent for a given supplier or customer.

It happens to be best of us though - sometimes these records are assigned the wrong codes, or coding evolves over time. We’ve crunched the numbers to find these potential mis-codings and you'll see them presented in this insight, with helpful links directly to Xero allowing you to amend these where needed.

Xero provides a dedicated mechanism for re-coding, and their support documentation on this is here.

# Selecting The Date Filters

The Multi-Coded Contacts insight allows you to specify two different date filters:

Active During: This is the period where you want to find contacts to assess. Xavier will find and evaluate contacts that have been active (i.e. they have transactions) during this time period. For example, this could be your reporting period of the previous month.

Check Transactions Since: Once Xavier finds the active contacts to evaluate, this date refers to how far back in time Xavier should look into each Contact's transaction history to compare account and tax codes and surface any inconsistencies. For example, if you know that you changed your accounts structure at the start of the year, it doesn't make sense to evaluate transaction history before the change, so set this date to be the 1st of January (or whenever you made the change).

# Narrowing The Scope

The Multi-Coded Contacts insight allows you to get really targeted with the data cleanup process, and quickly filter out any suggestions that don't make sense for your situation.

Revenue | Expense | All: Restrict the suggestions list to only transactions relating to Revenue OR Expenses.

Account | Tax | All: Restrict the suggestions list to only transactions Xavier has identified with Account Code anomalies, OR Tax Code anomalies.

# Understanding the Colour-Coding

Xavier adds colour to the transaction rows to provide a clear indication as to which transactions fall into the "Active During" period and which ones are historical:

Understanding Multi-Coded Colour Coding

# Dismissals

If there is good reason for the different coding, then you can dismiss the multi-coded alert and it will not show again. Any dismissed alerts can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals. Dismissed items do not contribute to the Health Score.

This dismissal applies to a few levels below the contact, taking into account both direction (Payable/Receivable) and whether they are Tax Code or Account Code differences.

For example, you can dismiss an alert for a contact with differences in receivable account codes, and we won't raise any more alerts for additional receivable account codes placed against that contact, but you will still get an alert for that client if we detect multiple payable account code differences, or multiple receivable tax codes.

# Contact Defaults

Contacts in Xero can be setup with "default" account codes and tax types for sales and purchases. If set, Xero will use these to pre-populate the account code or tax type fields during bank statement reconciliation. For contacts that your client has a recurring relationship with (e.g. a supplier that bills monthly), setting these defaults in Xero can dramatically speed up the reconciliation process:

Setting Contact Defaults in Xero

Figuring out which contacts are eligible for setting up these defaults can be time consuming. This Xavier system analyses each contact's transaction history and searches for contacts where either sales or purchase invoices have been consistently assigned the same account code or tax type, and presents these up to you in a handy list:

Contact Defaults

You can review the transaction history of these contacts and decide whether or not to apply Xavier's suggestion.

Clicking Set as default does what is says on the tin - Xavier will prompt you to confirm before setting the suggested code in Xero as the default for either Sales or Purchases:

Contact Defaults Confirm Setting

Xero's support documentation on settings for Contacts is here.

# Dismissals

If you think the suggested default is not suitable, you can dismiss it. Any dismissed suggestions can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals. Dismissed items do not contribute to the Health Score.

The dismissal covers the combination of contact name and the type of suggested account code; account code or tax type. If you dismiss a suggested account code default for a contact, for example, you will still be suggested potential default tax types if one becomes suitable.

# Dormant Accounts

This view identifies GL Accounts that have not had any transactional activity recorded against them from the "Dormant Since" date you supply.

Dormant Accounts

You can review the transaction history of these accounts and decide whether or not to take action on Xavier's suggestion. The idea is to help you identify old account codes that could be cleaned up, either through archiving or deleting, for better reporting.

You can filter and sort to look at accounts with transactional history (activity) and also by Account Class. Xavier won't show you Xero System Accounts and certain other Accounts as they cannot be archived.

For each account suggested by Xavier, you can either archive it, or dismiss it. Archiving the suggestion makes the appropriate change in Xero. Dismissing the suggestion will hide it from the "Suggested" list, but you can always undo this from the "Dismissed" list if you want it back.

You can also follow the link to Xero's Chart of Accounts to restore an archived account or delete one. Read more on managing account codes in Xero.

# Dismissals

Each account code can be 'dismissed' if you're not ready to take action and do not want Xavier to raise it again. Dismissed items do not contribute to the Health Score. Any dismissed account codes can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals.

# Corporation Tax

Coporation Tax

The Corporation Tax insight gives an estimate of the corporation tax accrued by a company for the current and previous financial years, based on UK tax rates and using the financial year-end dates in the Xero settings.

In terms of how the different elements are calculated, Xavier starts your team off with some defaults based on the chart of account's Account Type and the Reporting Codes provided by Xero.

# Client-specific configuration

Reporting Codes are applied to all Accounts, and can be customised in Xero by your team. They are a great way of achieving reporting consistency across clients that have different chart of account configurations. But you only have visibility of Reporting Codes if you are a Xero Partner, and sometimes it is not feasible to configure these for every client you work with.

Xavier allows you to override the default corporation tax calculation for a client. By clicking on the cog beside an element of the corporation tax view you will see what is currently being used for that section of the calculation.

Coporation Tax Section Calculation

Clicking "change" allows you to specify individual account codes to either include or exclude, depending on the section:

Coporation Tax Section Override

Specifying account codes means that the default calculation will no longer be used for this client, and Xavier will instead use the account codes provided. Upon clicking Save, the corporation tax will be recalculated for current and previous years based on the new configuration.

You can remove account codes from the calculation at any time, and removing all of them will result in the calculation reverting back to using the Xavier defaults.

# Capital Allowances

The Capital Allowances section of the Corporation Tax insight uses the Fixed Assets register in Xero to look for registered assets purchased during the date period. It specifically looks for:

  • Fixed Assets with a status of "Registered" (i.e. Draft won't count)
  • Fixed Assets with a purchase date that falls within the start and end dates you've set at the top of the Corporation Tax view

# Scheme Thresholds

For the Cash and Flat Rate schemes, Xavier monitors your taxable turnover to ensure that you remain on the right scheme from a compliance perspective, using HMRC's defined thresholds.

For example, you'll get an alert at the top of the VAT insight if you exceed a threshold:

VAT Exceeded Threshold

And similarly Xavier also warns you if you are approaching a threshold:

VAT Approaching Threshold

# Payment Detection

Xavier will try and detect if a previous period's accrued VAT has been paid to HMRC or not, by searching for reconciled bank transactions within 6 months of the end of the period, with:

  • a GL Account with the Reporting Code of LIA.CUR.TAX.VAT
  • a payment amount within a 2% variance of the estimated amount for the period

VAT Payment Detection

If such a payment is found, the Payment Detected field will be set to "Yes". Clicking on this will take you straight through to the bank transaction in Xero.

# Fixed Assets

VAT Tracking

Fixed Assets are a somewhat separate part of the Xero system, which can lead to some inconsistencies. Xavier connects to the Fixed Assets register in Xero and compares it with the general accounting ledger to highlight where records may be out of sync.

# Fixed Asset Accounts

Xavier looks at general ledger Accounts that have an Account Type of FIXED, and then looks for mapped Asset Types in the Fixed Asset register. Accounts need to be selected as the Fixed Asset Account, Depreciation Expense Account or Accumulated Depreciation Account of at least one Asset Type to be considered "mapped".

Xavier then checks the balance of any unmapped Accounts - if any are non-zero then this should be considered a genuine issue that needs immediate attention.

# Draft Assets

Xavier searches the fixed asset register for draft assets and lists them here for convenience. This section is a good place to start if the asset types are not reconciling in the section above.

# Fixed Asset Account Reconciliation

This section cycles through all of the accounts in Xero's general ledger that are specified as the Fixed Asset Account in the Fixed Assets register. It compares their balance with the combined totals of the Purchase Price of all assets associated with it, up to the Reporting Date, and highlights any that don't match. You can expand each Asset type to compare transaction history of the Account with the Asset activity.

# Depreciation Account Reconciliation

Similar in logic to the Fixed Asset Account Reconciliation, this section cycles through all of the accounts in Xero's general ledger that are specified as the Accumulated Depreciation Account in the Fixed Assets register. It compares their balance with the combined totals of the "Depreciation Value" of all assets associated with it, up to the Reporting Date, and highlights any that don't match. The Depreciation Value is a calculation of the difference between the Purchase Price and Accounting Book Value of an asset.

# Depreciation Run

This simple check compares the Reporting Period specified at the top of the insight with the "Last Depreciation Date" in the Fixed Asset Register, and shows an error if they don't match.

# Aged Balances

VAT Tracking

The Aged Balances insight looks at aged Debtors and Creditors (i.e. old invoices) at a snapshot in time.

# Setting Parameters

  • Reporting Date: this is the point in time that you want to evaluate your debtors and creditors at, based on invoice dates.
  • Invoice Age: the age of the invoice in relation to the Reporting Date. For example, setting the Invoice Age to two months means Xavier will only look at invoices that are dated older than two months from the Reporting Date.

# Aged Receivables

This surfaces your debtors, old invoices for people that owe you money. You can see a count of old invoices at a glance and a sum of the total amount owed. Clicking on this card will expand to show the detail of each aged invoice, each with a link straight to Xero if needed.

# Aged Payables

This surfaces your creditors, old invoices for people that you owe money to. You can see a count of old invoices at a glance and a sum of the total amount you owe. Clicking on this card will expand to show the detail of each aged invoice, each with a link straight to Xero if needed.

# Average Debtor Days

This uses a common ratio-based method to provide an indication of the length of time it takes for your debtors to pay you. This is based on the total Receivable amount owed at the Reporting Date, and the gross revenue over the last 12 months up to the Reporting Date.

# Overpayments

The check allows you to review all overpayments that still have remaining credit available at the time of the Reporting Date, by checking the dates of any allocations to make sure they are applicable. This is categorised into Overpayments relating to Suppliers and Customers.

# Control Accounts

All Control account checks use the following logic to decide the alert level:

  • All is well: if the Control Account balance is 0 and there is a Manual or Xero Payroll Journal present in the last complete month
  • All is well: the Control Account balance is equal to the amount posted in the Manual or Xero Payroll Journal(s) in the last complete month, and (if relevant) the snapshot date is well in advance of the HMRC Deadline
  • Warning: Contol Account and Journals balance, but a payment due date is approaching
  • Error: No Manual or Xero Payroll Journal found in the last complete month
  • Error: No payment detected, and a payment deadline is past due
  • Error: Control Account balance is non-zero and does not reconcile with balance of Manual or Xero Payroll journals

# PAYE Status

This check balances manual journals against detected payments with PAYE account codes to ensure a correct PAYE status at a point in time. By default, the check calculates the PAYE control account balance based on account codes found under the reporting code LIA.CUR.TAX.OTH. You can change the account codes used by clicking the small cog next to the card title, where Xavier will suggest a number of account codes for easy setup. Expanding the card shows the detailed grid of PAYE transaction history for the last 6 months.

# Net Wages Status

This check balances manual journals against detected payments with Net Wages account codes, to ensure that it reconciles to 0 or the balance is as expected.

Similar to PAYE status above, you can change the account codes used by clicking the small cog next to the card title.
Expanding the card shows a chart of money in and money out, and the detailed grid of Net Wages transaction history for the last 6 months.

# Pensions Status

This check balances manual journals against detected payments with Pensions account codes, to ensure that it reconciles to 0 or the balance is as expected.

You can change the account codes used by clicking the small cog next to the card title. Expanding the card shows a chart of money in and out of the control account, and the detailed grid of Pensions transaction history for the last 6 months.

# Activity Stats

Activity Stats

Designed for accountancy firms utilising proposal tools such as GoProposal to determine pricing for their clients, the Activity Stats insight gives a breakdown of the key trading statistics of a company, with a focus on volume, e.g. number of bank transactions for the period. These figures can then be input directly into your proposal tool to quickly calculate pricing when a client is up for renewal.

By default, this insight calculates statistics for a rolling 12 month period, starting from the last complete month, and working back from there. However, you can select a date range and Xavier will do its best to segment your date range into monthly slots.

# Understanding Turnover

The Activity Stats insight uses the following logic to determine the Turnover calculation:

The NET value of all transactions in the selected date range that have an Account Type of either Revenue or Sales.

TIP

Note that the Account Type Other Income is not included in this calculation.

Account Types in Xero

This gives you some flexibility in determining this Turnover figure, as the Account Type can be modified for each account in Xero.

TIP

Xero provide some documentation on working with Chart of Accounts.

# Historical Changes

Historical Changes

Have you ever had that uncomfortable feeling that something in a previous period has changed after you've reported it to the board or to the tax authorities? All the accountants we know have run into this at some point. Everyone makes mistakes, and it can be quite easy for someone with Advisor privileges in Xero to create a record with the wrong journal date.

The tricky thing is tracking down these changes so they can be amended. Xavier allows you to identify exactly what was changed and when within seconds. Simply input the historical reporting period that you want to check, and the close date from which you expect no more transactions to have been logged for that period, and click Run Report.

Xavier queries the underlying journal transactions for the client, and looks for transactions that have a journal date within the historical period, but a created date of after the reporting close date.

You'll be able to jump straight to the offending transaction(s) in Xero from the results. And, in case you need to show someone else where it all went wrong, you can always export the results to PDF.

# Companies House Periods (UK Only)

For UK companies, using Companies House data we can pull back your last filing period and the date the accounts were filed in the secondary navigation. Use the 'Use these dates' option to auto-populate the Historical Changes insight with your last filing dates.

A metric will be shown in the Practice Dashboard to highlight where there has been any changes to filed data.

TIP

Xavier uses the Companies House number it detects in Xero to make this connection - if we can't display any data, check the Companies House number in Xero is correct and update if necessary.

# Historical Changes Checks

The Historical Changes check is also available in Focus; for UK companies, this will be automatically populated as the last filing period, but it can also be adjusted during the Flow.

# Regular Suppliers

Regular Suppliers has now become Cost Analysis! See below...

# Cost Analysis

Cost Analysis

The Cost Analysis insight is designed to analyse your client's expenses across their supplier base and their expense accounts over time and automatically detect issues. Our AI will look for months where the total amount paid is unusual compared to other months.

Clicking a supplier or account will show a chart of amounts over time and highlight the periods where we have detected there may be an issue. Clicking on a bar in the chart will explain the issue that we have found and show a summary of payments to the supplier or account in the chosen period. You may then choose to dismiss the alert or go through to Xero to investigate.

# Regularity

On each Supplier or Account Code card is an indicator on the right for Xavier's best guess on the regularity of those payments to that supplier or account code, e.g. weekly or monthly.

# Dismissals

Each anomalous period can be 'dismissed' if you have reviewed the period and do not want Xavier to raise it again. The card for that supplier or account will not be removed from the view until all anomalous periods in the chart have been dismissed. Dismissed items do not contribute to the Health Score. Any dismissed periods can be viewed by selecting dismissed from the filter at the top of the screen, where you can then review and undo any accidental dismissals.

# Filters

  • Display Mode - Use the Display Mode to toggle between reviewing cost by Supplier and cost by Account Code. Both views work in exactly the same way, except for the categorisation of costs.
  • Active During - Set this date parameter to view only suppliers or account codes active in a certain period.
  • Anomalies | Dismissed | All Suppliers/Accounts - Use this filter to view either all anomalies detected, all dismissed anomalies, or simply all account codes or suppliers, regardless of any anomalies or dismissals, for a full review.

# Sales Analysis

Sales Analysis Screenshot

This feature allows you to review your client's revenue for a given period, breaking it down into who their key customers are and how much revenue each of these customers generate.

# Accumulated Revenue

This chart demonstrates how much of your client's revenue comes from a smaller proportion of customers. The chart area is cumulative; the steeper the curve is at the beginning, the more revenue is generated by that segment. The curve will typically then level off, as later segments contribute less to the revenue total.

Revenue-generating contacts are listed in the grid below the chart, grouped by segment, with an indication of how reliant the client is on that contact. By identifying these key revenue generating customers, you can give clients informed advice as to where they should be focusing their time.

This grid lists a few key stats:

  • Customer is the contact name, and clicking on it will link to the contact in Xero
  • Revenue is the amount of revenue generated by that customer during the period
  • Transactions is the number of transactions generated by that customer during the period
  • Reliance is the percentage of total revenue which comes from that customer in the period
  • Debtor Days is a calculation of the time the customer typically takes to pay

# Average Monthly Revenue

Xavier then provides two key stats for the client; average monthly revenue for the period, and the average monthly revenue per customer for the period.

Last Updated: 7/22/2020, 8:38:42 AM