As a business owner, hiring contractors can be a great way to grow your business without having to commit to hiring full-time employees. However, managing your contractors` payments and taxes can be a hassle. Thankfully, Xero makes it easy to add contractors to your accounting platform so you can keep track of their payments and ensure compliance with tax laws.

Here`s how to add contractors in Xero:

Step 1: Navigate to the “Contacts” tab

Once you`ve logged into Xero, head over to the “Contacts” tab. This is where you will find all of your contacts, including your contractors.

Step 2: Add a new contact

To add a new contractor, simply click on the “Add Contact” button and select “Supplier” from the dropdown menu.

Step 3: Fill in the contractor`s information

Once you`ve selected “Supplier,” you will be directed to a page where you can enter your contractor`s information. This will include their name, email address, phone number, and any other relevant contact information.

Step 4: Fill in payment details

Under the “Payment details” section, you`ll want to fill in your contractor`s bank details so that you can pay them for their services. This will include their account number, sort code, and any other relevant information.

Step 5: Set up tracking categories

If you want to track your contractor`s expenses in Xero, you can set up tracking categories. This will allow you to easily see how much you`re spending on each contractor and track your expenses by project or category.

Step 6: Save the contact

Once you`ve filled in all of your contractor`s information, click on the “Save” button to add them to your Xero contacts.

And that`s it! Now you can easily keep track of your contractor`s payments and expenses in Xero. By following these simple steps, you`ll save yourself time and hassle while ensuring compliance with tax laws. Happy contracting!