Overview
Your accounting experience is now directly integrated into the Collective platform. By bringing your books, invoices, and financial reports together within your dashboard, we’ve created a unified system where smart technology and specialized expertise work in tandem.
1. Managing Your Transactions in Collective
Your transactions are the pulse of your business. Having them in one place allows you to maintain an accurate financial record without the need for manual data entry or jumping between separate software accounts.
Everything in One Place
Your Accounting Dashboard automatically populates your bank account transactions after you have connected all your bank accounts via Plaid, so you no longer need to log into a separate Xero account.
- Complete visibility: Your bank transactions are now viewable directly from your Collective account. If it hits your business bank account, you will see it right here in your Transactions page.
- Items needing attention are flagged: Transactions are automatically categorized. If a specific transaction can’t be categorized with certainty, you’ll receive a task on your dashboard.
- Spot an error? Fix it in seconds: Since you know your business best, you can update the categorization directly from the transaction itself. For example, if you see a transaction categorized as "Office Supplies" that was actually "Marketing," simply edit the category yourself.
Insights at a Glance
Financial insights for your business are found directly on the dashboard, helping you stay organized year-round.
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2. Switching to Collective Invoicing
Getting paid should be the easiest part of your job. Collective Invoicing is designed to be professional and completely integrated with your bookkeeping, so you can focus on your craft instead of backend work.
What to Expect During Migration
If you are moving your billing over from Xero, here is how your data will transition:
- Your invoice history is safe: Your sent and paid invoice history will be accessible from Collective Invoicing.
- Migration Scope: Only Authorized and Paid invoices are included in the migration. Invoices with a status of Draft or Submitted were not migrated.
Invoice Status Mapping (Xero → Collective)
| Xero Status | Collective Status |
| Paid | Closed |
| Authorized | Open |
| Voided/Deleted | Canceled |
*Note: Voided/Deleted status only applies if the action occurs after the initial migration.
Setting Up Stripe
To accept payments via credit card and ACH, you can connect your Stripe account directly:
- Go to the Invoicing tab and click Setup Invoicing.
- Follow the prompt to Connect Stripe.
- Log in with your existing Stripe credentials or select "Create a new account" to get started.
Why Use Collective Invoicing?
- It’s integrated: Payments and income flow directly into your books and tax reports.
- It’s included: This feature is already part of your membership cost.
- It’s professional: Create branded, custom invoices that help you get paid faster.
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3. Understanding Reimbursements
Article Context: Whether you operate as a single-member LLC or an LLC that has elected S Corp tax status, you can deduct the business portion of personal costs. The requirements and principles outlined in this article apply to both structures.
Tracking personal expenses used for business purposes ensures you aren't leaving money on the table. Collective simplifies this by moving reimbursements out of spreadsheets and directly into your dashboard.
Mixed-Use Expenses
You still get to deduct the business portion of your personal costs, but we take the math off your plate.
- Home Office & Utilities: You enter your costs; we calculate the deduction based on your square footage.
- Mileage, Internet & Phone: You input the details; we apply the business percentage.
The Monthly Workflow
To keep your books clean and stay compliant with IRS rules, we suggest following this monthly routine:
- Navigate to Accounting > Reimbursements.
- Fill out your Mixed-use expenses.
- Add any Out-of-Pocket expenses paid from personal accounts.
- Click Submit.
- Pay yourself: Once submitted, transfer that exact total amount from your business bank account to your personal account.
Important: The 60-Day Clock
To keep these reimbursements tax-free, the IRS generally requires you to submit them within 60 days of the expense. Setting a recurring calendar reminder for the 1st of every month is a great way to stay on track.
Relevant articles
- The Accountable Plan and Getting Reimbursed for Personal Expenses
- Common Business Expenses
- Understanding Business Travel Expenses
- Auto Expenses
- Getting to Know Your Import Tools and Transaction Types
- Business Transactions from Personal Accounts
- LLC and S Corp Frequently Asked Questions
4. Finding Your Financial Reports
Having your financial statements at your fingertips allows you to make confident decisions and stay tax-ready throughout the year.
Your Essential Reports
In your Reports tab, you have instant access to the core financial documents:
- Profit & Loss (P&L): See exactly how much your business is making and spending.
- Balance Sheet: A snapshot of what your business owns (assets) versus what it owes (liabilities).
- Cash Flow Statement: Track the actual movement of money in and out of your accounts.
- Trial Balance: A detailed summary of all your ledger balances.
Customizing Your View
- Select your Date Range: You can toggle the view to show data for any specific period, such as a particular month or quarter.
- Download & Share: Fast export options allow you to download these reports as PDFs or Excel files—perfect for your own records or for sharing with lenders.
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5. Managing Your Bank Connections
Your bank feed is the heartbeat of your bookkeeping. It’s how we ensure every dollar is accounted for and your financial statements stay accurate.
Adding and Removing Accounts
- Adding a New Account: If you open a new business savings account or credit card, navigate to the Bank Accounts tab and select Add New Account to securely connect it.
- Removing an Account: If you close an account, you can disconnect it to keep your dashboard clean. Your historical data will remain in your records.
When a Connection Needs Attention
Bank security measures are tight, which means a feed might occasionally disconnect due to a password change or a routine update.
- How to fix it: If you see an alert next to an account, simply click Reconnect or Update Credentials.
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Automatic Sync: Once you re-enter your details, any missing transactions will be imported automatically—no data lost.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.