Ace your compliance with tax and accounting software

Automate sales tax, 1099s, and payroll taxes with Xero. Designed for US small businesses, with automatic sales tax calculations and powerful, real-time financial reports. And to create a full workflow, connect Xero with apps to manage all your finances in one place.

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    Save time with automations
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    Collaborate easily
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    Connect to third-party apps

Your multi-state sales taxes made simple

Want to zip through your sales admin? Xero partners with Avalara to handle your tax calculations. Automatically calculate accurate sales tax across many jurisdictions, making tax time a little easier.

Accurate numbers every time

Xero calculates up-to-date sales tax rates based on location and item details.

Works across state lines

Simplify your sales tax calculations with accurate sales tax across many jurisdictions.

Less manual work

Automate sales tax, 1099s, and payroll taxes with Xero.

Here's how Avalara powers Xero for sales taxes

Easy year-end taxes

Breeze through your financial year-end with Xero's accounting software for tax preparation.

Automated expense and deduction tracking

Relax as Xero helps you capture bills, receipts, and expense claims on your phone.

Financial reports on tap

Run reports, including income statements and balance sheets, in a few clicks. Get a clear view of your business health.

Effortless collaboration

Forget the back and forth of file sharing! Give your tax advisor access to your most recent numbers.

Xero supports your 1099s

Automate sales tax, 1099s, and payroll taxes with confidence. Automate 1099s and contractor information reporting with Xero. Then, when tax season arrives, Xero generates 1099-NEC and 1099-MISC reports for you.

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    Use Xero to identify 1099 contacts with the Cash payments by vendor report
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    Print a complete tax return or only certain parts
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    Connect apps to Xero and file 1099 forms with an e-filing partner
Here's more on filing 1099s with Xero tax and accounting software

Smooth tax filings for your payroll

Xero integrates with Gusto to help you manage payroll taxes with confidence and stay IRS compliant. Everything in one place, seamlessly connected. Trust your numbers.

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    Let Xero's tax accounting software help automate 1099s and payroll taxes
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    Download a printable PDF version of your return
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    Pay employees and manage payroll taxes with confidence

Automatic bank feeds and categorized records

Once you connect your bank, Xero automatically imports transactions to help keep your accounts accurate and up to date. Keep your records up to date and your accounting data organized in easy-to-read reports. How's that for ditching the boring jobs?

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    Xero small business accounting and tax software can connect to multiple bank accounts
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    Xero's AI-powered tools learn from your historical patterns to accurately categorize transactions
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    You can quickly search for, say, expenses for a client or a set of bills

Connect apps to Xero for a whole system

As a flexible platform, Xero connects with more than 1,000 apps, or you can build your own connection. Run the Trial Balance report to see your general ledger account balances at your chosen date. Simple!

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    Create a transfer transaction to record the movement of funds between your bank accounts in Xero
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    Reduce manual work and save time with easy document uploads
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    Read ratings and reviews from verified Xero customers, so you can choose with confidence
Visit the Xero App Store

FAQs on Xero's tax and accounting software for small businesses

Xero is an all-in-one platform to manage bookkeeping, payroll, tax and cash flow reporting in one place. Instead, it's a powerful accounting platform that helps you prepare your small business for tax season. Xero handles tasks like calculating sales tax, tracking 1099 payments, and managing payroll tax data. Connect third-party apps to your Xero organization with the Xero App Store.

Xero is an all-in-one platform to manage bookkeeping, payroll, tax and cash flow reporting in one place. Instead, it's a powerful accounting platform that helps you prepare your small business for tax season. Xero handles tasks like calculating sales tax, tracking 1099 payments, and managing payroll tax data. Connect third-party apps to your Xero organization with the Xero App Store.

Xero simplifies sales tax calculations with auto sales tax powered by Avalara. Once integrated, Avalara automatically calculates sales tax on your invoices based on where you’re selling from and where you’re selling to. Xero generates Sales Tax reports so you can review your sales tax details for the selected tax period.

Xero simplifies sales tax calculations with auto sales tax powered by Avalara. Once integrated, Avalara automatically calculates sales tax on your invoices based on where you’re selling from and where you’re selling to. Xero generates Sales Tax reports so you can review your sales tax details for the selected tax period.

You'll save heaps of time! Automate your tax workflows to reduce manual work and help keep your records accurate. Xero brings your accounting data into easy-to-read reports and automatically calculates accurate sales tax across many jurisdictions, making tax time a little easier. This helps prevent costly penalties and frees up valuable time you can use to grow your business.

You'll save heaps of time! Automate your tax workflows to reduce manual work and help keep your records accurate. Xero brings your accounting data into easy-to-read reports and automatically calculates accurate sales tax across many jurisdictions, making tax time a little easier. This helps prevent costly penalties and frees up valuable time you can use to grow your business.

Yes! Xero helps you set up contractors, process pay runs, and account for withholding tax. Use the Cash payments by vendor report to identify your 1099 contacts and quickly tell if a vendor is over the threshold. Xero's 1099 report contains forms for 1099-NEC and 1099-MISC, and you can send 1099 contacts a unique link to complete a digital Form W-9, with the details auto-populating their 1099 contact record in Xero. And to e-file your 1099s, Xero integrates with third-party partners to submit these forms to the IRS for you.

Yes! Xero helps you set up contractors, process pay runs, and account for withholding tax. Use the Cash payments by vendor report to identify your 1099 contacts and quickly tell if a vendor is over the threshold. Xero's 1099 report contains forms for 1099-NEC and 1099-MISC, and you can send 1099 contacts a unique link to complete a digital Form W-9, with the details auto-populating their 1099 contact record in Xero. And to e-file your 1099s, Xero integrates with third-party partners to submit these forms to the IRS for you.

Xero integrates with Gusto, Xero’s preferred payroll provider in the US. This integration automatically calculates and files payroll taxes, reducing errors and saving you valuable time. Automate your payroll with Gusto, Xero’s preferred payroll provider. When you run payroll in Gusto, Xero automatically creates a bill or manual journal so you can reconcile transactions for accurate records.

Xero integrates with Gusto, Xero’s preferred payroll provider in the US. This integration automatically calculates and files payroll taxes, reducing errors and saving you valuable time. Automate your payroll with Gusto, Xero’s preferred payroll provider. When you run payroll in Gusto, Xero automatically creates a bill or manual journal so you can reconcile transactions for accurate records.

Absolutely! Xero is cloud-based software, which means you can give your accountant or tax advisor secure access to your books. Share live reports with your accountant or bookkeeper in Xero, ensuring everyone is looking at the same live data together. Customize and extend Xero with more than 1,000 connected apps, and collaborate with your accountant or bookkeeper in real time.

Absolutely! Xero is cloud-based software, which means you can give your accountant or tax advisor secure access to your books. Share live reports with your accountant or bookkeeper in Xero, ensuring everyone is looking at the same live data together. Customize and extend Xero with more than 1,000 connected apps, and collaborate with your accountant or bookkeeper in real time.

Run multiple reports at once and customize your view - cutting down on double-checking and manual work. These include Profit and Loss reports to track your profit, Balance Sheets for a snapshot of your assets and liabilities, and Sales Tax reports to review your sales tax details for the selected tax period.

Here's how Xero reporting tools can help your business

Run multiple reports at once and customize your view - cutting down on double-checking and manual work. These include Profit and Loss reports to track your profit, Balance Sheets for a snapshot of your assets and liabilities, and Sales Tax reports to review your sales tax details for the selected tax period.

Here's how Xero reporting tools can help your business

Start using Xero for free