Earlier this year, Xero announced the Map accounts to tax lines feature, allowing accountants and bookkeepers to prepare client books for tax preparation. Now, Xero partners based in the US can easily map their client’s chart of accounts to lines in US tax forms including Form 1040, Schedules C and E (with one property). And today, we’re excited to announce that Forms 1065, 1120, and 1120S are live!
Mapping accounts to tax lines will make annual tax preparation easier for US accountants and bookkeepers by seamlessly mapping client data directly within Xero. Accountants have the option to view the mapping in Xero or export the data as a CSV file that can be imported into the tax software of their choice. Currently, this process may be completed in multiple softwares or tax modules. Map accounts to tax lines allows accountants to map to tax forms from within the accounting software at no additional cost beyond the regular subscription price. This reduces the need to move information between systems, allowing for quick and accurate access to financial data that may be required for tax planning services, and offers potential time savings.
This feature is a major step in Xero’s journey toward automating the compliance process for advisors and enabling them to run their businesses more efficiently.
Key benefits include:
- Reduce manual data entry: Xero brings all of your client’s financial data together in a simple workflow, reducing the need for manual workarounds and third-party tools when preparing client books for tax.
- Ensure data accuracy: Once your mappings are complete, audit your work by viewing a report that breaks down each tax line with the mapped accounts. Adjustments can easily be made when errors are found and the mapped report will refresh with updated financial information.
- Tax software agnostic: Bridge the gap between Xero and your tax software by exporting a CSV of the completed mappings. Once formatted to meet the criteria of your tax provider, the data can then be imported into the tax software of your choice.
Reducing the time to perform data entry in the tax preparation process leaves more time for me to discuss the goals, objectives and needs of my clients and their businesses. As a result, I can deliver on the advice and value they desire.
To learn more about Xero’s tax tools and the Map accounts to tax lines feature, please visit: https://www.xero.com/us/features-and-tools/practice-tools/tax-tools/
This post was authored by Jay Kimelman, CPA, CITP.