Setting up Xero for Electrical Contractors

Using the default Xero setup? You're doing it wrong. Electrical businesses have specific reporting needs that the standard "Chart of Accounts" doesn't cover.

1. Custom Chart of Accounts

Don't just dump everything into "Sales" and "Purchases." Split them up:

• Sales: Split into "Residential," "Commercial," and "Maintenance."
• COGS: Split into "Materials," "Subcontractors," and "Equipment Hire."

This lets you see at a glance where your money is coming from and going to.

2. Tracking Categories

Use Xero's "Tracking Categories" feature to track profitability by Job Type (e.g., Solar vs General Electrical) or by Employee.