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Xero announces new features on bank recs, compliance, payments at Xerocon

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2 years ago

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Diya Jolly, Xero’s chief product and technology officer, announced several new products and enhancements aimed at the three critical jobs CEO Sukhinder Singh Cassidy had previously outlined (see previous story). She spoke during Xero’s annual Xerocon event in Nashville today.

One was an enhanced bank feed experience that bolsters the core accounting functionality of the platform. Jolly noted that, over the past 18 months, Xero has increased the number of its direct feeds into US and Canadian banks from 20 to over 700 through partnerships with aggregators like Yodlee and Flinks, and plans for “hundreds more” in the future. These aggregators are important because it allows Xero to set up feeds even for banks that do not provide a direct connection. It also allows Xero to monitor bank feed statuses and notify the user if one becomes unavailable. Further, even if a bank doesn’t allow direct digital feeds at all, users can also upload PDFs of bank statements to Xero, which then extracts line item data that can then be re-imported into the system. 

Another was the new bank reconciliation feature that accounts for the unique nature of such tasks in the North American market. Jolly, in a later interview, noted that the “in other countries you get your bank feed, you get the transactions like your invoices and bills, and you reconcile them and you’re done.” Working in the North American market, though, requires a somewhat different approach because, generally, accountants need to reconcile everything through a specific bank statement, say from the 7th of one month to the 7th of the next month, which means some transactions wind up getting pushed out to another statement. 

“Now you can put a bound across the transactions. Sometimes what happens with your transaction dates is I might pay a bill on the 7th and the credit card statement says the 7th but in the bank statement it says the 12th. You need the ability to move transactions around and adjust them so whatever is on your bank statement [is accurate],” she said. 

The new feature allows accountants and bookkeepers to easily identify discrepancies between bank statements and entries in Xero. This will enable them to verify the accuracy of their financial data and categorize and balance transactions at the end of each month, helping to ensure their data is accurate. 

Xero will also have a new localized chart of accounts and reporting feature, optimized for business types (i.e C-Corp, S-Corp, LLC, etc.) which is intended to help users onboard with standardized accounts set up. Additionally, the company updated financial reports to meet the unique needs of the US market with an enhanced trial balance report that enables users to set custom date ranges. Users can set an opening and closing balance plus a date range and really drill down to adjust the data until everything balances.

Tax and compliance

Jolly also talked about enhanced sales tax and compliance features. For one, Xero has integrated W-9 requests and collection into contacts, which then allows users to track W-9 information throughout the year. This, in turn, can expedite 1099 preparation. 

“You can now request W-9s directly from the Xero contacts page and do it in bulk. We also revamped the workflow for completing W-9s, so now it is much easier for your clients’ vendors to be able to fill them and get them back to you faster. But that’s not all. In the pst, you had to manually exclude third party payments from your 1099s. But in the next few weeks, Xero will automatically filter out those payments so you can save time during the busy season,” she said. 

Further, through its partnership with Avalara, Xero has expanded state-based reporting to all invoicing users, which means businesses can automatically generate sales tax reports for each state and filing period. 

“We launched comprehensive sales tax reporting within Xero, auto-created and auto-populated with client data for each state and filing period, so now you have everything you need to calculate client sales tax and consolidate it and have it go in one place. We also built a new sales tax home page [to track everything like due dates in one place.] As you can see, we’re investing heavily in sales tax and reporting in the US,” she said. 

Jolly also discussed a new dashboard that will soon be available in Xero Practice Manager and Xero HQ which provides advisors with visibility into their clients’ key metrics and financial health. Currently in beta, this feature provides a snapshot of both metrics and trends for all business clients, “so you can not just see what needs to be done right now but also how your clients are tracking overall and what might be in store for them in the near future.” 

Payments

Jolly also elaborated on new features concerning payments, both making them and receiving them. When it comes to accounts payable, she said the intention is for users to conduct the entire process from within Xero. Through leveraging a strategic partnership with payments solutions provider Bill, Xero has developed an embedded bill pay solution that does just that. Users will be able to manage and approve their bills directly from within the platform using ACH transfer, credit or debit cards or even having a check mailed. This feature will be available to US users in beta starting next month. 

Xero has also added new capacities for accounts receivable as well. The goal, she said, is to equip users with customization tools that allow them to get professional invoices out the door. To this end, she said, they have developed a new site-by-site preview function that lets people customize invoices to fit their specific brand and see exactly how it will look to the customer. Users, further, will also be able to send invoices via text messages; once this happens, people will also see a new revamped checkout workflow that allows them to pay with the click of one single button. In partnership with Stripe, Xero is also enabling more new payment types including direct bank transfers and ‘buy now, pay later’ options, in addition to existing options for credit cards, debit cards, and digital wallets. 

Along similar lines, mobile users will also have the ability to “tap to pay.” There are many times where a client needs to accept payments in person or, at the very least, by getting out their laptop, often in their free time on nights or weekends, which means “you’re left chasing them so they can get paid.” Tap to Pay, however, allows clients to set up an invoice in the app and take a payment right then and there using their mobile phones. 

“I am really confident this will help you and your clients reduce the number of late payments they have,” she said. 

JAX

Jolly also talked about the company’s new generative AI assistant, Just Ask Xero or “JAX.” While she said Xero is “no stranger to AI” as “it powers a range of our products,” JAX uses generative AI to automate tasks and provide guidance through a plain language interface. 

“JAX is our smart AI business companion that will help you and your clients complete tasks whether here or in Xero… You and your clients can now Just Ask Xero and JAX will not only five an accurate answer, but provide follow up suggestions on what to do next, like addressing an overdue payment or paying a bill.

These features are only the beginning. Jolly said that JAX, over time, will be in more and more of the Xero platform where it might be able to do things like check for anomalies or find specific types of transactions. She acknowledged, though, some of the concerns people have about AI and noted that Xero takes them seriously. 

“This is the future we’re working towards. And with this great opportunity there is also great responsibility. We will adhere to our responsible data use commitments [for privacy]. JAX will [also] feature JAX Assure that gives you precise accounting data and only the data you are allowed to access within Xero, making it more accurate than other generative AI models,” she said. 

Accounting Today plans to publish a more in-depth look at this new tool tomorrow, based on our one-on-one talk with Jolly. 

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Accounting

AI-Driven Automation and Continuous Accounting Frameworks

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10 hours ago

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August 15, 2026

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The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

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6 days ago

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August 9, 2026

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

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1 week ago

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August 5, 2026

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Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.

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