What is the first step to take when closing a project in Xero?

The first step to take when closing a project in Xero is to access the project and change its status to "Closed" by clicking the menu icon and selecting that option. This action is crucial because it officially marks the project as complete within the system, ensuring that no further transactions can be associated with it. Closing the project helps maintain accurate records and reporting, as completed projects are separated from ongoing ones, allowing for clearer project management and resource allocation.

While finalizing invoices is an important step in the project management cycle, it typically follows the closure of the project itself. Deleting a project is not advisable as it would result in the loss of all historical data related to that project. Moving tasks to another project is not a necessary step for closing; it is more about project management and delegation rather than the closure process. By selecting the closed status, project leaders can signal to all stakeholders that the work is finished and that the project is now in a state of completion within Xero's system.