Sales Tax Guide for Xero

Table of Contents
  1. Introduction
Guidelines
    Xero
    Platform
    Xero

    Last Updated
    June 26, 2017

     
     

     
     

    This guide will take you step by step through how to integrate TaxJar with your Xero account. With your TaxJar integration, you’ll enable real-time sales tax calculations and reporting – along with the ability to automate your filing.

    Sales tax is complex, with regulations changing constantly. For a primer on the basics of sales tax, including nexus, registration, filing, reporting, calculations and more, please visit Sales Tax Fundamentals. Also, be sure to take a look at our Resource Center, with articles, webinars and videos for beginners and experts alike.

    Please note that TaxJar for Xero requires a TaxJar Professional or Premium subscription. To sign up, or to upgrade your existing account, please contact our sales team.

    How to Connect TaxJar with Xero

    Connecting Xero and TaxJar is easy.

    If you don’t already have a TaxJar account, sign up for a 30-day free trial. Then click on the “Account” link at the top of your TaxJar dashboard

    Then click “Linked Accounts” on the sidebar

    Next, click the “Link Xero Account” button

    Then click the green “Link to Xero” button

    Login to your Xero account and click the authorize button

    From here, you are all set. From there, TaxJar will create Chart of Accounts accounts within your Xero account for each state in which you have sales tax liability.

    Next, we’ll create actual bills due, payable to each state where you have sales tax liability. We break this down monthly, and list the due date as your sales tax filing date. This way, you get a granular, monthly look at what you owe to each state, but also keep on top of varying state deadlines if you pay monthly, quarterly or annually.

    Xero and TaxJar work together seamlessly. When it comes time for you to actually file and pay sales tax, we provide a link back to TaxJar where you can fill out and file your sales tax return.

    From there, Xero accounts for your sales tax payment. Your business books are accurate, your balance sheet reflects the true status of your business, and an hours-long sales tax hassle was taken care of in a matter of minutes!

    If you have additional questions or need help integrating your Xero and TaxJar accounts, please contact our support team.

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