How can you keep track of incoming goods and services using Xero?

Using purchase orders in Xero is the most effective way to keep track of incoming goods and services. Purchase orders serve as formal documents that outline the items or services you intend to procure from suppliers. When you create a purchase order, you specify details such as quantities, prices, and delivery dates. This not only helps in maintaining accurate records but also facilitates communication with suppliers, ensuring both parties agree on the terms of the transaction.

Once the goods or services are received, you can easily match the purchase order with the corresponding bills, ensuring that what you've ordered matches what you have received. This process promotes better inventory management and helps in tracking spending effectively.

Other methods, such as creating new invoices or sending emails to suppliers, do not provide the same level of control and visibility over incoming goods and services. Invoices are typically created after the transaction has occurred, while emails lack the structured tracking that purchase orders offer. Similarly, managing customer payments is unrelated to tracking incoming goods and services, as it focuses on the income side of your business rather than the procurement process.