Raising Invoices in Xero

Xero is used to create invoices, which are subsequently synchronized using the reference and tracking categories to appear in LoftyWorks under the landlord balance and on the landlord statement. The most frequent bills sent are those for rent and a security deposit, or for fees, repairs, ground rent, or service costs to the landlord.

Rent invoices will be generated automatically through LoftyWorks each month, as will be explained in more detail later in the guide. However, invoices for works, fees, and other costs must be generated manually as these are usually one off costs that don’t happen frequently.

Raising invoices in Xero

To create an invoice in Xero, select the Business option from the menu in the top left corner of the screen, followed by Invoices.

A drop-down arrow will then appear next to the option labelled "New Invoice" on the screen. If you want an invoice to be generated automatically on a regular basis, either click the "New Invoice" button or choose the drop-down menu to examine additional possibilities.

The template invoice format will then be displayed by Xero, where you can easily enter the data you want to appear on your invoice. Each input element has been shown in the second image below.

A list of all raised invoices will be displayed whenever you return to the invoices screen. The invoices can also be viewed according to their status. For example: Draft, Awaiting Approval, Awaiting Payment, Paid and Repeating invoices.

There is also a search function where you may look up an invoice or invoices based on different variables like amount, reference, and contact if you're searching for a specific invoice or want to break down the list of invoices further.

The invoice can then be seen on LoftyWorks by heading to the relevant property, choosing the Contracts option, and then selecting Invoices. Any invoices you create for that specific property will be saved under this section so you can access them as well as still being able to view these in Xero.

The correctly raised invoices will appear on the landlord statement and will appear on the statement in a certain way depending on their status on Xero.

Draught bills will not display on statements because they have not been approved. Invoices that have been paid and appropriately reconciled will appear on the landlord statement as fully paid, and invoices that are still pending approval and payment will appear as being in arrears.

The below statement shows how the invoice will be reflected once you have raised an invoice, approved it but is yet to be paid.

The statement image that follows illustrates how the invoice will appear when it has been reconciled in Xero and you have received the corresponding payment. It will no longer appear under arrears; instead, it now appears under status as paid income on the statement.