The answer to this question will be different for Ltd Companies and unincorporated businesses.

Ltd Companies

The general principle to work to is that a bank account should be added to Xero for any account or location that can hold company money indefinitely. This will include all bank accounts owned by the company whether current or saving accounts but should also include:

• Banking Facilities (eg PayPal, Revolut)

• Digital Wallets (eg Wise, Telleroo)

• Cash Stores (eg petty cash, till cash)

It is equally important to exclude accounts that are not owned by the company, for example accounts owned by the Director or similar.

Sole Traders

Here bookkeeping will be kept simplest if all business transactions are kept to a business accounts and only these accounts are added to Xero. Again it is helpful to add accounts that can hold business money to Xero whether bank accounts, banking facilities or cash holdings.