This video will show how to use tracking categories in Xero. What this means is a report can be generated that will compare your specific tracking category. For example, the video creates a tracking category by client.
How to create tracking categories in Xero:
1. Go to Settings/General Settings/Tracking/Add Tracking Category (Clients)
2. Add a selection of Clients into the Tracking Category
3. Set up cost categories: Settings/Chart of Accounts/Add new Account
4. Allocate and approve Sales and Purchase invoices to the specific clients
5. Generate report and compare by clients
This will enable the display of a Profit a Loss that compares the clients from the tracking category. This is great way to get an overall view of your business as well as get more detail on a per client basis. While, the video uses a client tracking category you could select any category you like in order to generate reports to suit your needs.