Easy compliance with Xero tax accountability software

Want to simplify your financial admin? Xero integrates with Avalara and Gusto for complete US tax compliance. Everything works together so your small business can calculate amounts, organize records, and follow tax rules – all in one place.

A small business owner holds a tablet showing Xero's cloud tax-preparation software.

Be confident in your compliance

Easily manage key US tax tasks, including sales tax, payroll taxes, and 1099 reporting.

Save time and costs

Let Xero automatically calculate sales tax and help reduce manual work so you can get through tasks faster.

See clear numbers

Use real-time cash flow data to plan your spending.

Get sales tax calculations instantly

Xero integrates with Avalara to automatically calculate sales tax rates on invoices. Just create an invoice and see the tax worked out for you, wherever your customer is. No more adding totting up numbers or waiting until later to do the admin – just correct figures instantly.

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    Together, Xero and Avalara: covers over 13,000 tax jurisdictions automatically calculates up-to-date sales tax rates based on location and item details integrates with Avalara for US sales tax
Xero tax accountability software shows a list of sales transactions with information like 'Tax Exempt'.

Run sales tax reports for all jurisdictions

Xero helps you run the Sales Tax report to review your sales tax details for the selected tax period. Xero calculates each return using the mapped tax rates you’ve applied to transactions for the period, so you can use tax return reports to review your tax obligations before filing.

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    Xero sales tax reports: Sales tax rates are automatically determined for over 13,000 US tax areas. The tax basis you select determines which transactions the sales tax return includes, based on cash or accrual reporting requirements. show a summary of taxes that can be organized by tax rate, tax component or account type

Master your ecommerce and software sales

Is your online business growing? Powered by Avalara, Xero automatically calculates accurate sales tax across many jurisdictions and uses up-to-date sales tax rates based on location and item details. That way, Xero can automatically calculate accurate sales tax across many jurisdictions.

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    The Xero and Avalara integration: calculates up-to-date sales tax rates based on location and item details helps calculate sales tax based on the US state entered for the shipping address
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    Accurate calculations, less worry. Sales tax rates are automatically determined for over 13,000 US tax areas, reducing the stress of staying compliant with complex rules.
Here's more on Xero's sales tax automation software
A small business owner and their accountant review tax calculations with Xero's sales tax automation software.

Xero integrates with Gusto for your payroll

Xero integrates with Gusto for payroll, and you can authorize Gusto with your state’s tax agency so Xero Payroll can report taxes on your behalf. H3: Automatic calculations Pay employees and manage payroll taxes with confidence, knowing your numbers are accurate and IRS compliant every time.

All your payroll tax numbers together

The Xero homepage gives you a snapshot of your business information such as your bank account, invoices owed and bills you need to pay.

Automatic filing and remittance

Xero integrates with Gusto for complete US tax compliance. Pay employees and manage payroll taxes with confidence.

Here's more on pay runs with Xero and Gusto
A table shows the annual salary, YTD earnings, and next pay day for an employee with Xero's sales and tax solution.

Streamline your income tax preparation

Want to save hours of tax admin? Xero brings all your accounting data into an easy-to-read set of reports, saving you time and providing you with a single source of truth. Then when tax season arrives, your records are ready to help you prepare for tax time with less manual work. Simple!

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    Keep all your bills in Xero for a great audit trail
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    Give your accountant or bookkeeper access to Xero for fast online collaboration on your latest numbers
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    Easily fix any issues as you go along to avoid stress at financial year- end
Find an accountant or bookkeeper near you
A small business owner uses their tablet to see a sales tax summary with Xero's automatic sales-tax preparation software.

Your contract payments admin, sorted

Use Xero’s 1099 report and Cash payments by vendor report to help manage contractor payment reporting. Use Xero’s 1099 report to identify and mark 1099 contacts, manage W-9 details, and report payments recorded during the selected reporting year on 1099-NEC and 1099-MISC forms.

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    Xero software: helps you account for withholding tax payments for contractors excludes credit card payments from your 1099 report sends requests to your 1099 contacts for W-9 details and helps you mark contacts as 1099 contacts
Here's more on 1099 filing with Xero
Small business owners can manage their vendors' W-9s with Xero's automated tax compliance software.

The info you need to manage your cash flow

Xero's dashboard Customize your Xero dashboard to access tax reports, a profit and loss statement, and a balance sheet. With this info at your fingertips, you can put aside cash for a tax bill, decide when to make a big purchase, and stay in control of your cash flow.

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    Review your sales tax details for the selected tax period with the Sales Tax report
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    Review your sales tax details for the selected tax period, or change the dates to view sales tax for other periods
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    Check your Xero short-term cash flow projection to see whether you have funds available to pay your bills
Find out more about managing your cash flow with Xero
Xero's tax preparation software for small businesses displays a graph showing a short-term cash flow projection.

Why choose Xero tax accountability software

88% of small businesses in the US using Xero agree Xero is easy to use.*

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    Save hours per month

    Xero helps simplify tax time by automating sales tax, payroll tax and income tax prep in one platform.

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    Spend less on compliance

    Automate sales tax, payroll tax & income tax prep in one platform.

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    Collaborate with your accountant

    Share live reports with your accountant or bookkeeper in Xero, ensuring everyone is looking at the same live data.

FAQs on Xero's automated tax compliance software

Here are answers to common questions on automated tax compliance software. Xero integrates with Avalara for sales tax rates across 13,000 US tax jurisdictions. Xero calculates up-to-date sales tax rates based on location and item details. The system automatically calculates sales tax based on where you’re registered to collect tax, where you’re selling from and to, whether the item is taxable, and whether a customer is exempt from sales tax. This means sales tax rates are automatically calculated by Avalara, and rates are automatically updated to reflect rate and taxability changes.

Here are answers to common questions on automated tax compliance software. Xero integrates with Avalara for sales tax rates across 13,000 US tax jurisdictions. Xero calculates up-to-date sales tax rates based on location and item details. The system automatically calculates sales tax based on where you’re registered to collect tax, where you’re selling from and to, whether the item is taxable, and whether a customer is exempt from sales tax. This means sales tax rates are automatically calculated by Avalara, and rates are automatically updated to reflect rate and taxability changes.

No, you don't! Xero integrates with Avalara to automatically calculate up-to-date sales tax rates for US invoices. You can choose the tax treatment and tax rate when you enter a transaction, and Xero applies a default tax rate to each transaction that you can change. This helps keep your records precise and supports current and prior year reporting.

No, you don't! Xero integrates with Avalara to automatically calculate up-to-date sales tax rates for US invoices. You can choose the tax treatment and tax rate when you enter a transaction, and Xero applies a default tax rate to each transaction that you can change. This helps keep your records precise and supports current and prior year reporting.

For sure. Xero lets you mark a contact as exempt by default, so all invoices for that customer can be exempt. It helps automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier. Xero helps simplify sales tax by calculating up-to-date sales tax rates based on location and item details, reducing manual work and making tax time a little easier.

For sure. Xero lets you mark a contact as exempt by default, so all invoices for that customer can be exempt. It helps automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier. Xero helps simplify sales tax by calculating up-to-date sales tax rates based on location and item details, reducing manual work and making tax time a little easier.

Very easily! Invite your CPA into your Xero organization and assign them the appropriate user role. They can then view transactions and run reports in Xero. They can export reports from Xero, review the General Ledger Detail report, and run a Trial Balance report to see general ledger account balances at their chosen date. Altogether, this reduces manual work and saves time.

Very easily! Invite your CPA into your Xero organization and assign them the appropriate user role. They can then view transactions and run reports in Xero. They can export reports from Xero, review the General Ledger Detail report, and run a Trial Balance report to see general ledger account balances at their chosen date. Altogether, this reduces manual work and saves time.

Absolutely. Xero brings all your accounting data into an easy-to-read set of reports, providing a single source of truth. And for visibility, Xero generates a version number for NZ tax returns and increases it when a tax return moves from unlocked to locked. Xero securely stores bills, receipts and other business documents in one place, so you can maintain accurate records and access your files when you need them. Automated sales tax tracking keeps your records precise and helps you prepare for tax time, every time.

Absolutely. Xero brings all your accounting data into an easy-to-read set of reports, providing a single source of truth. And for visibility, Xero generates a version number for NZ tax returns and increases it when a tax return moves from unlocked to locked. Xero securely stores bills, receipts and other business documents in one place, so you can maintain accurate records and access your files when you need them. Automated sales tax tracking keeps your records precise and helps you prepare for tax time, every time.

Pretty quickly – mMost small businesses can have Xero's core accounting features up and running within a day. Xero integrates with Avalara for auto sales tax and with Gusto for payroll tax compliance. It’s quick and easy to set up your business in Xero, with steps to update your tax information and support from Xero experts, including personalized 1:1 set-up assistance to help you get up and running fast.

Pretty quickly – mMost small businesses can have Xero's core accounting features up and running within a day. Xero integrates with Avalara for auto sales tax and with Gusto for payroll tax compliance. It’s quick and easy to set up your business in Xero, with steps to update your tax information and support from Xero experts, including personalized 1:1 set-up assistance to help you get up and running fast.