Seamless accounting and payroll

Payroll is a hard thing to love! The greatest compliment that we ever receive is the joy our customers feel for something that is now simple, that was once so complex. Our goal here at Xero is to bring you the most beautiful US domestic payroll product that we possibly can. Over the next few blog posts, we’ll share with you our plans for seamless accounting and Payroll, provide some snippets of the product and invite you on our roadshow to see it all in action – live and up close.

Payroll and accounting in one at the US Xero Roadshow


Since the idea was first born to bring payroll to the Xero product here in the US, we’ve focussed on making the experience seamless and simple. No longer is it acceptable to separate payroll and the general ledger. This potentially introduces costly mistakes through export and import, or synchronization.

Transactions from Payroll in Xero will seamlessly flow through to, and impact the general ledger immediately – the way life was meant to be. Invoices for the taxing authority are created automatically, facilitating the visibility of what is often the highest payable a business has at any one time. In addition, wages expenses and associated deductions and reimbursements are represented as a journal. This impacts the Income Statement and Balance Sheet, reflecting the impact of the approved payroll immediately.

Finally, we can’t wait to show off our tax liabilities and PTO journals in the balance sheet! By taking in to account all employee’s total accrual and their current salary, the real liability is reflected in the small business accounts for the very first time. This subtle yet substantial feature ensures that payroll never again becomes disconnected from your accounting – ultimately reducing hours of administration, reports and manual journals.

Reserve a US Xero Roadshow seat

We can’t wait to share this with you in October and November when Xero hits the road for our 20 city partner roadshow. This special event is free to attend, qualifies for 5 CPE, and even includes lunch and drinks – making this a real opportunity to nourish the mind as well as the body!

Reserve your seat now for the Xero Roadshow


October 23, 2013 at 12:19 am

Will this feature be available for UK users also?


Stuart McLeod in reply to David
October 25, 2013 at 8:08 am

@David, US payroll will be released shortly. We haven’t committed to any further jurisdictons as yet.

October 24, 2013 at 1:09 pm

Are there any improvements coming to Aussie Payroll? Been connected to Xero now for two years and there doesnt seem to be any substantial improvements to the original Paycycle Product ? Overall payroll is simplier than MYOB. However having to create bills etc doesnt really feel like a total integration to me? Although now a single login still feels like an add on to me? Also your customers are continuing to make errors with this.

Stuart McLeod in reply to Elton
October 25, 2013 at 8:10 am

Elton, we’ve made some substantial improvements to the AU product over the last 18 months since it’s been available to customers including submission of the TFN declaration to the ATO automatically, revamped reports, completely rebuilt & more efficient Payment Summary process.

However, we’ll definitely bring the integrated general ledger to the AU product in coming releases.

Hank Burba
October 26, 2013 at 4:22 am

Payroll is a messy business, and I have yet to see an online product deal with the real bottle necks in processing, like multiple locals in the same pay-cycle, garnishments, labor distributions, etc.

Almost all online payroll programs handle Fed and State well, but all of them drop the ball on local taxes. Why, because many states have allowed local tax regulation nightmares.

I don’t even want to talk about tracking PTO for small business and I rarely want to track it on my GL. Small businesses have never adopted a standard PTO so that means software that claims to track it; really mean to say, we track it only if you do it our way.

Sorry to be so negative, but only the service bureau style programs measure up and half of those fail in local tax processing and PTO tracking.

Stuart McLeod in reply to Hank Burba
October 26, 2013 at 11:04 am

Hi @Hank, thanks for your feedback. We hope to clean up this messy business as best we can!

We hope to show you the huge benefit of having such a seamless process between payroll and the GL. I see you’re in Kentucky so make sure you watch our blog and community page and if you’d like to be involved, then please stay in touch.

Hank Burba
November 1, 2013 at 3:16 am

Thanks @Stuart, I see that you have Ohio on your list soon, they have a crazy local tax system too. I’m wishing you and your team the best, and I will closely follow your releases.

Larry Harsh
November 1, 2013 at 9:38 am

Hank, I feel your pain and know exactly what you are talking about. I went to the payroll presentation Roadshow in Denver yesterday. It was awesome! Xero is truly designing the payroll for seamless integration, plus I was totally impressed with there attitude about adding features and listening to accountants. Do not miss the presentation when it comes your way. You will not be disappointed.

Jared Farmer
December 3, 2013 at 8:47 am

Looking for payroll module in Michigan. Any idea when it will be available?

Stuart McLeod in reply to Jared Farmer
December 3, 2013 at 9:12 am

Hi @Jared, not at this stage, but keep an eye on this page in our community as to how we’re progressing with your state.

Andrew Smythe
January 20, 2014 at 5:07 pm

Hi – new convert to Xero. Looking at Xero Payroll options and cant see how I can post empoyees timesheets to cater for multidivisional reporting. I want to be able to split the GL posting to different divisions. Is this possible

Stuart McLeod in reply to Andrew Smythe
January 20, 2014 at 5:34 pm

Hi @Andrew, check out how to set up tracking categories for timesheets and then you can post to the GL based on time allocated to those.

February 25, 2014 at 1:41 pm

When will payroll be available? Not using Xero now, but this could be the tipping point.

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