Xero offers more than quick invoicing, it helps you monitor your sales performance. Setting up products and services correctly in Xero streamlines your invoicing process, improves financial reporting, and ensures your business runs smoothly.

Instead of manually entering item details each time, you can select a pre-set product or service, automatically filling in the description, price, and tax settings and reduces the risk of errors like incorrect pricing or missing details.
Standardised pricing ensures consistency across all invoices, preventing undercharging or overcharging. It also helps maintain profit margins by tracking costs associated with each product or service.
Categorising sales by product or service helps identify bestsellers, slow-moving items, and revenue trends.
You can also break down income streams, making it easier to analyze profitability and plan for growth.
For businesses selling physical products, Xero can track stock levels, ensuring you don’t oversell or run out of items. This helps manage purchasing by showing when stock is running low.
Pre-setting tax rates ensures every invoice is compliant, avoiding calculation mistakes.
Making tax reporting easier by categorising income and expenses correctly.

HOW DO YOU USE THIS?

Description texSave time by pulling in pre-set descriptions, prices, and tax details.
Helps analyse what’s selling well and where your revenue is coming from.
Ensures you have the right inventory levels and know when to reorder.
Ensures products and services are categorised correctly, making compliance easier.
Helps review margins and adjust pricing based on profitability.

WHEN WILL YOU USE IT?

IT ALL BEGINS WITH AN IDEA

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IT ALL BEGINS WITH AN IDEA ✦

KEEPING INVENTORY

Keeping your inventory organised in Xero helps you track stock, speed up invoicing, and stay on top of purchases. There are a few easy ways to add new items to your inventory:

Directly in Products & Services
Duplicating an existing item
On the go, while creating an invoice, bill, or purchase order
Bulk importing multiple items at once

Who Can Add Items? If you have an Adviser or Standard User role, you can add and duplicate inventory items.

If you have Invoice Only – Sales or Invoice Only – Purchases access, you can add items when creating transactions

In the Business menu, select Products and Services.

Click New Item.
Enter the Item Code and Name.
If you want to track inventory, tick Track Inventory Item and select an Inventory Asset Account.
Choose whether this item is for sales, purchases, or both.
Set up default pricing, tax rates, and account codes to automatically apply when using this item.
Click Save, Save & Add Another, or Save & Duplicate

HOW TO ADD INVENTORY

Need a similar item? Save time by duplicating an existing one! The new item will keep all details from the original, except:

The Code, which must be unique | The Name, which will have ‘Copy’ added (e.g. "T-shirt Small – Copy").

DUPLICATING EXISTING ITEM

Go to Business > Products and Services.

Open the item you want to duplicate.
Click the menu icon (⋮) and select Duplicate Item.
Update any details, then hit Save.

ADD WHILE RECORDING TRANSACTION

If you’re invoicing a customer or recording a purchase and need to add a new item on the spot:

Start creating your invoice, bill, credit note, or purchase order.
In the Item field, select Create New Item.
Enter the item details.
Click Save, then finish filling out the transaction.

Add Products and Services to Xero for Better Invoicing