Across the US, practices are navigating no shortage of pressure: AI is changing how work gets done, client expectations are rising, and competition is evolving fast. But if there’s one takeaway from Xero’s latest Modern Practice Playbook, it’s this: the firms pulling ahead aren’t necessarily the biggest. They’re the ones making deliberate choices about how they work.

That’s what stood out most to me in this research.

Based on a survey of 561 independent senior accountants and bookkeepers across the United States, the playbook offers a clear view of how modern practices are being built today. And while no two firms look exactly the same, the most successful practices share a set of habits that are helping them stay agile, profitable and future-ready.

Modern practices are built on intentional choices

For many firms, the challenge isn’t a lack of ambition. It’s a lack of time.

The most effective practices are responding by being more intentional about who they serve, how they structure their teams, and where they focus their energy. They are narrowing their client focus, building more specialized workflows, and creating space for deeper, higher-value work.

Our research shows the profitability gap is not simply about size or structure. Top-performing practices have a net profit margin 2.7 times that of lower-margin firms. What separates them is a shared set of behaviors: they embed AI into daily workflows, expand into higher-margin advisory services, and price with greater discipline and confidence.

In other words, modern practice is less about doing more of everything and more about doing the right things on purpose.

AI is creating capacity, but strategy determines the payoff

AI is now a practical reality inside many firms, and the gains are meaningful.

Across all staff combined, practices using AI save about one working day per week on average. Among top performers actively using AI in day-to-day workflows, that rises to 9.1 hours per week, with estimated average annual savings of $387,000.

But the real story isn’t just time saved. It’s what firms do with that time.

The practices gaining the most from AI are not treating it as a one-off experiment. They are embedding it into the rhythm of everyday work, then redirecting the capacity it creates into areas that strengthen the business. In fact, 42% of practices using AI say they are channeling that time into client advisory services and other high-value work.

That matters because efficiency on its own doesn’t create growth. Intentional reinvestment does.

Advisory is still one of the biggest opportunities ahead

One of the clearest messages in the playbook is that advisory remains a major growth opportunity.

Today, 57% of practices surveyed say they offer client advisory services. More than half of those firms expect advisory revenue to outgrow compliance revenue over the next three to five years. Yet many practices are still leaving value on the table, often because they believe they lack the time or capacity. However,  many are already having advisory conversations, they’re just not formalizing or charging for them. 

That’s where AI and better workflows can make a real difference. When routine work becomes more efficient, firms have more room to turn insight into a service, and a service into revenue.

This shift is important not only because advisory can strengthen margins, but because it deepens client relationships. It moves the role of the accountant or bookkeeper beyond reporting on the past and closer to helping clients shape what comes next.

Pricing is becoming a strategic lever

Another strong signal from the research is that pricing is evolving.

On average, practices now bill 78% of client engagements on non-hourly terms. That’s a meaningful shift in a world where automation puts pressure on traditional hourly billing. If technology helps work get done faster, firms need pricing models that reflect value, outcomes and expertise — not just time spent.

The most successful practices understand this. They are more likely to review prices regularly, communicate their value clearly, and charge in line with the impact they deliver.

The future belongs to firms willing to act

If there’s one message I hope practice leaders take from this playbook, it’s that the future is not fixed.

The pace of change in this profession is real. But change also creates the opportunity to rethink old assumptions and build a practice that is more resilient, more rewarding and more valuable to clients.

The firms pulling ahead are showing what that looks like. They are embracing AI with purpose, investing in higher-value services, and building pricing models that support sustainable growth.

That’s the opportunity in front of the profession now: not to be defined by disruption, but to use this moment to build something better.

You can read the full findings on Xero’s Modern Practice Playbook landing page.

The post The habits helping modern practices pull ahead appeared first on Xero Blog.

The numbers are worth looking at. Of the roughly 864,000 taxpayers expected to have to comply from April 2026, more than 570,000 have signed up and over 436,000 filed that first update. That’s a lot of change absorbed in a single quarter, and it didn’t happen by accident. 

Accountants and bookkeepers have spent the past year cleaning up records, updating their services and guiding clients through a brand new process. Our own research earlier this year found two in five sole traders and landlords didn’t feel ready — so the fact that so many have now filed is a real credit to this community.

But MTD for IT doesn’t end there. There are still a lot of businesses that haven’t signed-up for tax year 2026/27 and should have, and the quarterly and end of year submissions continue. So what happens next?

HMRC will start signing people up from September

HMRC has confirmed that from September 2026 it will start signing up taxpayers who were mandated from April but haven’t registered themselves yet, in stages over the following months.

If this applies to you as a small business or to your clients if you’re an accountant, there’s no need to panic. Being signed up isn’t a black mark — it simply puts you into the MTD system and onto the first step of getting going with MTD. Anyone signed up this way will receive a letter or digital message to their online tax account, depending on their contact preferences, explaining what it means and what to do next. Please note, this will go to the taxpayer only, not the accountant or bookkeeper.

There’s one action to take when that arrives: log into your online tax tax account and check and confirm the records HMRC has are correct. The income sources will be based on the 2024/25 tax return so you’ll need to tell HMRC if any of those income streams have ceased or if there are any new ones. Then link your HMRC-recognised software, like Xero, to your HMRC account.

Don’t wait to be enrolled, get ahead now

Here’s my main message: whether you’re an advisor or running your own business, don’t wait to be auto-enrolled by HMRC.

If you’re an accountant or bookkeeper, take a look through your client list now and see who hasn’t signed up. This gives you the opportunity to get them signed up now based on the correct information and not have to go through the process of checking and correcting HMRCs outdated sign up information.  Signing up now also gives you and your clients a head start on catching up with digital record keeping for quarter one, ahead of the quarter two submission deadline on 7th November.

If you’re a sole trader or landlord who hasn’t started, the first steps are simple:

1. Sign up for MTD for Income Tax with HMRC, and connect your HMRC-recognised software to your HMRC account.
2. Separate your personal and business finances, then connect your business bank feed so income and spending flow in automatically.
3. Review and create digital records of transactions little and often. Capture receipts, invoices and rental statements as you go, not in the week before a deadline. Tools like Smart Document Capture can scan documents and pre-fill your records.
4. If you work with an accountant or bookkeeper, agree who does what.

The remaining deadlines this year are 7 November 2026, 7 February 2027 and 7 May 2027. Put them in your calendar now.

Understanding the soft landing period

The next thing worth being clear on is penalties. For 2026/27, HMRC is applying a first-year soft landing: no penalty points for late quarterly updates. If you’re late with one, two or even all four of this year’s updates, you won’t pick up points. Points for quarterly updates start from 2027/28, when four of them will trigger a £200 penalty (check out our small business and accounting penalty guides).

The caveats matter, though:

• The obligation hasn’t gone away. The soft landing removes the penalty point, not the requirement to file, and you can’t finalise your tax return until every quarterly update is in.
• Your year-end return isn’t covered. The 2026/27 return is due by 31 January 2028 and can still attract a point if it’s late.
• Late payment isn’t covered. Penalties and interest apply in full, though a first-year easement gives 30 days rather than 15 before a penalty applies, or time to agree Time to Pay. It’s available once only.
• It’s this year only. Those joining in April 2027, when the £30,000 threshold comes in, won’t currently have a soft landing as things stand.

Good news for anyone catching up is that the quarterly updates are cumulative. Each covers 6 April to the end of the current period, so once records are up to date, the next submission picks up any period missed. No need to file the same figures twice.

Final thoughts

If you or your clients didn’t file in August, now is the time to get on the front foot. The soft landing means the cost of catching up is low, but the habits built over the next two quarters are the ones that will carry you through 2027/28, when points start building.

The businesses I speak to who’ve found MTD easiest all say the same thing, it was keeping digital records up to date week to week that made the biggest difference. That shift pays off well beyond compliance.

We have plenty of resources to help, whether you’re building an MTD-ready practice or taking a first step for your own business. Take a look at our sole trader guide here, and landlord one here. 

The post MTD for Income Tax: auto-enrolment, penalties and getting ahead appeared first on Xero Blog.

That’s the reality we build for. It’s also why this one landed differently than most: Canstar’s 2026 Most Satisfied Customers Award for Small Business Accounting Software in Australia isn’t rated by a panel, it’s voted by the people actually running their businesses on Xero. 

What you told us matters to you

When Canstar asked small business owners what set Xero apart, they rated us highest across the market for ease of use, features and functionality, ease of integration, reporting, and design.

The things small businesses said they value most are also where we continue to invest. This is a snapshot of what some of our customers said:

• “It’s simple enough for someone who isn’t from an accounting background”
• “Easy invoicing, great GST reports, saves me time and stress”
• “Xero is easy to use, cloud-based, and makes managing finances much simpler. I like its real-time reporting, bank integrations, and time-saving automation features”
• “Xero takes care of all the business’ accounting activity leaving me spare time to focus more on the business”
• “Easily the best accounting software out there. Does everything you need to do and integrates seamlessly with our business. Couldn’t live without it”

Hearing that small business owners are actively saving time on everything from invoicing and bank reconciliation through to payroll and GST reporting are exactly the areas we are focused on: removing the friction so owners can spend less time in the books and more time on their business.

We’re not done yet

An award like this is a reflection of a moment in time. What’s more important is that Xero keeps improving and making your lives easier. That’s our continued promise.

We’re continuing to enhance our platform in the areas that matter most to you.

• Smart Document Capture, now in beta, reads bills, receipts and invoices the moment they’re uploaded, forwarded or photographed, and turns them into a transaction ready for you to check.
• Industry Benchmarks in Xero Analytics compares your numbers against other businesses in your industry to help you make better informed decisions about your business.
• Auto Bank Reconciliation, also in beta, matches transactions to your bank feed as they come through, rather than leaving you a list to work through at the end of the month. It will soon handle more complex cases, like splitting a single payment across sales and fees.
• Online bill payments beta lets you pay supplier bills directly from Xero via bank transfer, PayID or BPAY, with each payment tracked and reconciled automatically.

All of it is built on a principle we call Accountable Intelligence. The software does the routine heavy lifting and shows its working, so you can see the detail behind it, and change anything if it’s wrong. AI supports the work, but human judgement and accountability stay with you. 

Some of these innovations are already in Xero today. Some of it is being built now. All of it comes back to the same question we ask before we ship anything: does this help small business owners?

To the small business owners and advisors who trust us to power their businesses, day in and day out – thank you. There is more to come!

The post Xero Wins Canstar’s 2026 Most Satisfied Customers Award for Small Business Accounting Software in Australia appeared first on Xero Blog.

Today, greater accessibility and popularity of AI and LLM custom coding tools means more and more businesses are taking a different path: they’re building the app themselves. And we’re not seeing any signs this new way of working is slowing down. Increasingly, the customers and advisors using Xero’s ecosystem are becoming the builders of their own custom apps. In fact, we’ve seen new app registrations increase 4x since 2025. 

So it’s not just that software is now easier to build, but it’s who is building it that has also changed. It’s called the rise of the builder: the people closest to the work, whether that be an accountant, a bookkeeper or business owner, are customizing workflows to fit how they actually work.

Why is it happening now? 

Building on top of Xero isn’t new — developers have been building on our APIs for years, built on two decades of data and trusted by millions of our customers. Our app store and APIs have long sat at the heart of how we deliver value to customers, allowing developers the opportunity to build apps or integrations that connect with Xero. And we’re proud that we have more than 1,000 certified apps in the Xero App Store.  

AI has now unlocked a world of new opportunities and closed the gap between having an idea and shipping something that works. 

As custom coding tools have matured, an advisor or small business owner can now describe a workflow in plain English and have AI generate the app, automation, or integration. 

Builder Spotlight

Enzo O’Hara Garza, founder and CEO of Accounting Prose, decided to build tools that help them run their firm more efficiently. Faced with the manual grind of reviewing client files at scale, they’ve built their own Claude skill using Xero’s MCP Server and Xero data to review client files more intelligently.

“When I built this skill inside of Claude, it was something that was done out of necessity,” Enzo says. “All I have to do is explain (to Claude): ‘I want to solve this problem.’ And I get ideas of what to do next, and then my problem can be solved.”

Rob Collings, is co-founder of AI-native accounting firm, Flexal. He says his team has been supercharged by AI, allowing them to spend time on focusing on their clients and making their processes easier. 

“I’ve been using Xero pretty much all of my career, so I know it inside out.  The tools that are available allow us to build on top of Xero… and also there’s a lot of apps that already exist within the ecosystem,” he said. 

 “We’ve connected as many tools as we can to Xero, standard things like the bank feeds, but then we’ve also built our own apps on top. For the first time in history, there is this period where accountants can start to build things themselves because of AI.”

How we’re supporting  builders

One in five connections into the Xero ecosystem is now a custom app from outside of the Xero App Store. And usage of Xero’s MCP Server — the secure gateway that lets AI tools work with live Xero data — grew ten-fold between December 2025 and May 2026, powering more than one million API calls as of June.

Recently, we worked with Lovable on their new Xero Connector. It is an easy way for anyone to describe an app in plain English and have it working with live Xero data in minutes. Every permission is opt-in, reports are always read-only, and the customer stays in control of exactly what the tool can access.

We also launched earlier this year, XeroForce, our natural language custom AI agent builder, built specifically for accounting and compliance workflows. It’s currently in early access with general availability later this year.

This is only the first step as we plan to release more builder-focused tools and resources to support this new wave of small business and accountant software builders relying on Xero as their trusted operating system for the agentic era. 

A trusted operating system for the agentic era

None of this replaces the ecosystem of world-class apps already built on Xero OS — the AI native operating system that powers JAX — or XeroForce. If anything, it deepens it.

As Rob puts it: “I think that’s what’s so exciting about the ability to build your own custom apps that integrate with Xero.  If there’s a problem that you’re trying to solve, there might be a solution on the App Store. But if there isn’t or you have quite a niche workflow, then you can use AI to build a custom app around the way that you actually work”.

As we continue to lead the industry as a builder of AI innovation in small business financial management, we’re focused on expanding that ecosystem to support them.

The Builder era is here. We can’t wait to see what you make.

Head to our AI toolkit page to learn more and stay up to date on all the developer tools.

The post Customizing their way: the rise of the builders appeared first on Xero Blog.

Last month at Xerocon London, we introduced several AI innovations delivering automated workflows and actionable insights to 5 million customers around the world. And the impact is real: our Modern Practice Playbook research, found that practices using Xero’s AI capabilities save almost one working day per week on average, and save approximately $176,000 annually.

Today at Xerocon US, we showcased even more new AI-powered capabilities that streamline end-to-end financial operations for small businesses and accountants, extending that impact — and giving customers even more time to focus on the work that actually matters.

If you missed the opening showcase, you can watch the recording below, or read on for all the details.

The trusted system of action, powered by JAX

Xero has spent 20 years as the trusted system of record for small business financial data. With JAX, our AI finance partner, we’re powering the next chapter: a trusted system of action that doesn’t just surface information, but acts on it, with you in control.

Here is a quick recap of the JAX-powered capabilities we announced at Xerocon London: 

• The next evolution of Xero Partner Hub will bring live book health, work status and month-end readiness in the same view across all of a practice’s clients. Underneath are JAX-powered innovations that streamline the entire end-to-end journey, delivering verifiable automation with customers in control, including flagging unreconciled items, duplicates, missing documents, and anomalies and helping customers resolve them. And as those are addressed, because it runs inside the ledger everything updates in real-time. Once the books pass a health check, Xero Partner Hub will also surface conversations that are worth having like cash flow patterns or unusual P&L movements.
• Smart Document Capture reads source documents and pulls the data directly into Xero — no syncing, no separate app.
• Auto Bank Reconciliation matches high-confidence transactions to bank feeds in real time, and tells you exactly why it matched every single transaction, surfacing any exceptions that require human expertise. With more than 100 million transactions auto-reconciled since launch, Auto Bank Reconciliation continues to improve and in the coming months it will also handle more complex cases, like splitting a single payment across sales and fees.
• Document Requests in Xero Partner Hub is coming soon, where JAX will request documents from the client, send reminders, respond to clarifications, and then match it with transactions in Xero, all while making sure customers get to approve every step.
• Cash Flow Actions, powered by JAX, can spot potential cash flow gaps before they arise and help businesses build a plan to stay in the black. Payment Follow-Ups and Bill Protection work alongside — accelerating money coming in and giving businesses visibility and control over money going out.

[Coming soon] JAX can build scenarios grounded in actual Xero data with Scenario Planning, giving businesses and their advisors the clarity and context they need to make informed decisions. Customers will be able to model rising costs, a price increase, or a hiring decision and see the potential impact in real time. Together with the recently launched Industry Benchmarks, these capabilities put enterprise-level financial intelligence into the hands of every small business and their advisor.

Xero is the orchestration hub for financial workflows

Xero is expanding its native agentic capabilities and third-party integrations even further so we can serve as the orchestration hub that can help streamline and automate key financial workflows that drive small business and practice life.

• [Coming soon] XeroForce, the natural language custom AI agent builder powered by Xero OS, now features a new month-end agent alongside other pre-built templates for common workflows. This new agent will automate workflows that practices must tackle each month across each client, handling everything from reviewing document reconciliation status, right through to manual journal entries for prepayments and amortization, before providing customers with a complete account of its actions to review and accept. XeroForce is currently in early access with general availability later this year.

• [Coming soon] Xero continues to expand integrations that give customers even more flexibility to securely access and query their live Xero financial data directly from their everyday productivity suites .
  • Xero’s integration with Microsoft 365 Copilot announced in July is expanding soon into Microsoft 365 Excel, Word, PowerPoint and Copilot Cowork, where live Xero data flows straight into charts, tables, and documents.
  • The Xero OpenAI connector – a Xero plugin in ChatGPT that will be available in coming weeks across Chat, Work, and Codex, enabling customers to leverage their Xero data throughout ChatGPT.   
  • Soon, customers will be able to seamlessly switch between their practice’s client organizations while working across all of these integrations. This new capability ensures seamless access to real-time, client-specific data when and where advisors need it.

Building the trusted operating system for the agentic era

Every capability announced at Xerocon US sits within Xero OS, our AI-native operating system, and is grounded in Accountable Intelligence, AI that handles the routine reliably, accurately and at scale, while human judgement stays firmly at the helm.

This isn’t automation and technology for the sake of it. 

It’s clean data, reconciled books and filed returns without all the manual prep. Businesses who get paid faster and can proactively manage their cash flow better. 

It is about technology that gives businesses and their advisors more time to focus on the work that matters the most. That’s what we’re building towards.

I’m so proud of the team for delivering this pace of innovation, and even prouder of what our customers and partners are building on top of it.

Follow all the action from Xerocon US across our social channels — and if you’re here in person, come find us on the show floor.

The post Xerocon Denver 2026: AI-powered workflows for small businesses and accountants appeared first on Xero Blog.

At Xerocon US, we announced a series of capabilities designed to help bring these key financial workflows together: Xero Payroll, Xero Bill Payments, Melio Expense Management, Melio API and Casper, an AI-powered client manager for accounting firms. 

Together, they reflect our continued focus in the US and helping small businesses and their advisors reduce manual work and gain greater visibility into their finances.

Payroll that fits into the broader financial picture

Payroll is one of a small business’s largest and most important financial responsibilities, with a direct impact on cash flow and day-to-day operations. Having payroll information alongside other financial data can give owners and advisors a clearer understanding of the business’s overall position.

To make that happen, Xero Payroll, powered by Gusto, is built directly into Xero, enabling US small businesses and their advisors to manage payroll alongside their existing financial workflows. Together with Melio-powered payments, customers can manage more of the money moving into and out of their business in a single, familiar place.

The solution includes automated federal, state and local tax calculations and filings, direct deposit, contractor payments, benefits support, and employee self-service capabilities. Bringing these processes together helps reduce administrative work while making important financial information easier to access when planning for the near- and long-term future.

Keep using the cards and rewards you already value

Managing business expenses is essential to maintaining accurate books, but collecting receipts, categorizing transactions and reconciling expenses can quickly become time-consuming.

Melio Expense Management helps streamline this process by tracking and categorizing card expenses in real time. Businesses can continue using their existing credit cards, keeping the rewards and cash back they value without needing to adopt another card or tool.

The solution extracts transaction details, categorizes expenses and syncs them directly to a customer’s accounting platform alongside existing bills and payments. It’s also accounting software-agnostic, making the capability available to businesses across different accounting platforms.

By automating more of the process, small businesses and their advisors can spend less time managing transactions and keep their financial information more current.

Reduce client-chasing with AI

For accountants and bookkeepers, completing client work often depends on receiving the right information at the right time. Missing receipts, documents, or transaction details can mean repeated follow-ups throughout the month and more work at month-end.

Casper, Melio’s new AI-powered client manager for accounting firms, is designed to help. Casper proactively identifies missing information, communicates with clients, and helps collect what’s needed to keep bookkeeping moving, while leaving accountants and bookkeepers in control. By resolving routine questions and collecting required documents earlier, Casper is designed to reduce client chasing and make month-end work more efficient.

Casper works across ledgers and complements JAX, our agentic platform, which continues to automate workflows and deliver actionable insights within Xero. Together, these capabilities show how AI can help reduce repetitive tasks while giving advisors more time to focus on the work where their expertise adds the most value.

Build more flexibility into business payments

How and when businesses can move money is another important part of managing cash flow and responding to business needs. Earlier this year, we introduced Xero Bill Payments, a payments experience designed specifically for Xero partners and their clients, built directly into the Xero workflow.

Now, the new Melio API gives developers direct access to Melio’s payment rails, including ACH, real-time payments, paper checks, domestic and international wires and virtual cards. Melio manages payment execution, compliance, risk and delivery, helping simplify the infrastructure behind business payments. Businesses can also pay recipients without requiring them to onboard onto Melio.

We’re also expanding instant payments, enabling small businesses to make payments at any time, including nights, weekends and holidays. The Melio API is live and available in closed beta, with broader availability planned in the coming months.

Building a more connected financial management experience

Small businesses and their advisors need technology that makes financial management easier, rather than adding another layer of complexity.

These latest updates bring payroll, payments, expense management and AI-powered workflows closer together. Powered by Xero OS, our AI-native operating system, and grounded in Accountable Intelligence, they’re designed to reduce administrative work while giving businesses and advisors greater visibility and control over their finances.

As we continue investing in the US, our focus is on building a more connected financial management experience that helps small businesses and their advisors work more efficiently, make decisions with greater clarity and focus on what matters most.

The post Xerocon Denver: One AI-powered platform for accounting, payments & payroll appeared first on Xero Blog.

From 1 October 2026, Australian businesses will no longer be able to add a surcharge to eftpos, Visa, Amex or Mastercard payments. It’s a Reserve Bank of Australia reform, and it’s being enforced through the card networks themselves, so from that date the option to add a fee at checkout simply won’t be there anymore for those card types.

If you’re one of the many Australian businesses currently passing on some or all of the card fee to your customer, this increases the cost of each sale. The good news is you’ve got time to plan for it properly.

What this means for your Xero organisation

If you use Xero to send invoices with a card surcharge applied, this will stop automatically on 1 October – you don’t need to do anything. Card payments keep working as normal, your customers just won’t be charged the processing fee on top and it will disappear from the invoice.

If you have unpaid invoices already out with a surcharge on them, those will be updated too. When your customer pays on or after 1 October, they’ll pay the invoice amount without the fee added.

The option to pass on processing fees will also disappear from your Online payments settings entirely. If you’d prefer to stop surcharging before the deadline, you can turn it off yourself anytime.

Considerations

For many small businesses, the ability to pass on card fees is not just about covering costs, but is a part of a larger set of decisions on what payment methods to offer. Things like how you price, what payment methods your customers expect, and how that impacts when you get paid. This flows on to admin, time you spend chasing payments, and reconciliation. 

There isn’t a single right answer – it will depend on your margins, your customers and how you compete. Here are some paths worth thinking through before October.

Build the cost into your price

Work the fee into your list price or hourly rate rather than adding it at checkout. This is simple for your customers to understand, though for some price rises might not be competitively viable. Another thing to consider: not every customer needs the same response. Some businesses choose to absorb the cost for regular, reliable clients and price differently for one-off or higher-risk work. 

The RBA has been clear that this isn’t just a naming exercise. A “cash discount” or “card handling fee” that happens to land exactly where the old surcharge did is the kind of workaround the ban is specifically designed to catch. Whatever path you choose, make sure it’s a genuine pricing decision.

Absorb it as a cost of doing business

For some businesses, the fee is small next to what faster payment already saves in reduced chasing and admin time. Getting paid in two days by card, instead of chasing an invoice for three weeks, has a real value in admin time and in your own cash flow. It’s worth looking at the total cost of getting paid, not just the processing fee in isolation.

Offer a broader range of lower cost payment methods 

The more ways you give customers to pay, the more you can shift the overall mix toward lower cost methods. Direct debit and PayTo, for example, typically carry a lower processing fee than card payments and settle quickly – so you’re not trading speed for cost savings. We know that choice matters to your customers, in fact 86% of consumers say they would rather pay by card.* If they can pay however it suits them they are more likely to pay on time. 

Finally, your accountant or bookkeeper is the right person to help you think through a pricing or cash flow change like this, since they know your numbers better than anyone. Consider setting up a  conversation with your trusted advisor before October, as you plan.

*Survey conducted by Xero of 6,021 consumers and 2,547 small businesses globally using Xero, May 2024

The post The ability to surcharge is going. Here’s what it could mean for your bottom line, and how Xero is helping appeared first on Xero Blog.

While Auto Bank Reconciliation is still in beta, it has automatically reconciled more than 100 million transactions, and nearly three in four customers tell us it’s saving them time*. Since customers can move from manually reconciling, to reviewing, it frees them up to focus on more valuable work for their business or practice.

But we know saving time is only part of the story. Through customer interviews, survey research and in-product feedback, we consistently heard that while the automation was working well, the review experience could work even better.

That’s why we’ve continued refining Auto Bank Reconciliation. Today, we’re introducing a faster, simpler way to review, edit and understand reconciled transactions.

A better way to review reconciled transactions

Review is where your expertise and JAX work together. JAX takes care of the repetitive work, while you review, verify and adjust.

That’s why we’ve added highly requested functionality to the Reconciled page to make reviewing simpler and more efficient. Whether you’re checking coding, confirming supporting documents or making a correction, everything you need is now in one place.

With less navigation and fewer interruptions, you can stay focused on your work from start to finish.

Make changes without breaking your flow

Sometimes reviewing your books means making a small correction. Previously, that could mean removing an entire reconciliation just to update an account code or tax rate.

Now you can make those changes directly from the Reconciled page.** Simply review, edit and continue, without removing the reconciliation or navigating away.

Every change also helps JAX better understand how your organisation works, improving future suggestions over time. Your review doesn’t just verify today’s work. It helps improve tomorrow’s.

Understand how JAX reached its decision

The Reconciled page shows the method behind each reconciled transaction. Whether it was reconciled using a match, rule, memory or prediction, or reconciled manually by you. You’re also able to filter auto-reconciled transactions as part of your review workflow, making it simpler to understand, verify and trust each reconciliation.

What you need, where you need it

Reviewing your books often means looking beyond the transaction itself. Whether you’re checking an invoice, reviewing a receipt or confirming supporting documentation, having the right information close at hand helps you keep moving.

You can now view, add and manage attachments directly alongside your reconciled transactions, so there’s no need to switch between screens to find what you’re looking for.

With everything in one place, it’s easier to review your work, make updates and move on without interrupting your workflow.

Acts only when it’s confident

Not every transaction should be reconciled automatically.

That’s why Auto Bank Reconciliation only reconciles transactions when it has a high level of confidence. If it isn’t confident, it leaves the transaction for you to reconcile. It’s a deliberate approach that helps reduce repetitive work while making every decision visible and reversible, regardless of whether it doesn’t auto-reconcile.

As JAX continues to evolve, we’ve already shipped improvements so that it’s able to confidently support more scenarios, including improvements to: 

• Late-arriving documents: When a bill or receipt turns up after the bank transaction, JAX can revisit the transaction and match it the moment the document lands.
• Bank transfers: JAX recognises transfers between your own accounts and matches them, keeping your records accurate.
• Recurring transactions: JAX matches recurring payments and receipts, so the regulars land where you’d expect them to.
• Bank rules: JAX works alongside the bank rules you’ve already set, handling predictable transactions consistently when it’s confident.
• Transaction descriptions: Clearer descriptions show what a transaction is and why it’s been coded that way.

That’s what Accountable Intelligence looks like in practice. It acts where confidence is high, holds back where it isn’t, and the last word is still yours.

Still learning, always improving

Auto Bank Reconciliation continues to improve,  but there’s still more work to do. We’re tackling more complex use cases, like scenarios where a single payment covers multiple invoices.

We’re continuing to expand the scenarios Auto Bank Reconciliation can confidently support, guided by customer feedback and real-world usage. As it evolves, the goal remains the same: to reduce more of the repetitive work, while keeping you confident in the outcome.

See Auto Bank Reconciliation in action

Whether you’re trying Auto Bank Reconciliation for the first time or coming back to see what’s new, we’ve focused on one thing above all else:

Making review more intuitive, simpler and faster.

Watch our step-by-step overview video, explore an interactive product preview, and visit our Help Centre article to learn more. Then, when you’re ready, enable Auto Bank Reconciliation on one of your own bank accounts.

Because the future of reconciliation isn’t about reviewing less. It’s about reviewing faster, with greater confidence.

*Source: Survey conducted by Xero of 203 small businesses and 120 accountants and bookkeepers globally using Xero, April 2026

**Tax rate editing is currently not available in the US.

The post What’s new in Auto Bank Reconciliation appeared first on Xero Blog.

Marisa Vodanovich comes from a family of gardeners. Naturally, this meant her teenage years saw her resist a career in floristry, turning instead to marketing and communications. Fast forward through a long tenure in corporate, and in the depths of the pandemic, Marisa found herself facing two redundancies within 18 months. In what she describes as a full-circle moment, she returned to gardening to find solace. Her floral arrangements quickly caught the attention of her local community, and what started as a hobby soon became a tangible business opportunity.  

“I was at a point in my life where I wanted more flexibility, and taking on another corporate job didn’t seem viable. So I thought, ‘Why don’t I give this a crack?’ That’s when I decided to turn my quarter-acre block in suburban Auckland into a flower farm,” says Marisa.

Today, Urban Floral Farmlet sells flowers and bouquets through local retailers and a subscription service, alongside farm workshops and tours. But getting the business to this point has been a journey for Marisa. 

As a creative person, she’s never considered herself a ‘numbers person’. It’s a sentiment that’s shared among small business owners in creative industries, with 79 percent believing the world of business costs, expenses and taxation is too complicated. “I was just so overwhelmed; I knew I needed help,” says Marisa. “While I had my accountant, I wanted guidance that was less technical – to work out my numbers in a manageable, bite-sized way.” 

It was through the Xero For Good Ambassador Program that Marisa met Trudi Ballantyne, Director of STEM Rural Accountants and member of the Xero Partner Advisory Council. Trudi had volunteered to be a mentor through the program, which connects small business owners with accountants and bookkeepers to help them build financial confidence over time. 

For Trudi, becoming a Xero For Good Ambassador was a chance to return to the roots of her profession. “Most of us became accountants not to do compliance work but to help people succeed. When we step outside our bubble and interact with businesses beyond our usual client base, it’s an opportunity to sharpen our people skills. I saw mentoring as a real opportunity to practice empathy and share knowledge that not all small business owners have access to.” 

A mentoring partnership built on trust, and small, achievable steps

Trudi came into Marisa’s life at the perfect time. The numbers were weighing on Marisa and keeping her away from the demands of the farm.

She says, “There were close to 2,000 reconciliations that I needed to get under control. It felt like an impossible task, but Trudi helped me break everything down into smaller steps that felt achievable. Once we got over this hurdle, I felt like I finally had the bandwidth to look at my business and establish whether it was sustainable moving forward. Having that time back allowed me to put together a plan – one that’s better for my business and my wellbeing.”

Like Marisa, the majority (91 percent) of small business owners admit they put off dealing with their business finances. While many say it’s due to a lack of time or other priorities, two-thirds of advisors believe it stems from a lack of confidence.  For Trudi, this became a key focus.

“I wasn’t there to teach accounting or to give Marisa all the answers; I wanted to help her build confidence and empower her to make informed decisions,” says Trudi. 

This assurance has seen Marisa apply learnings from the Xero For Good: Financial fitness hub (known as the Know Your Numbers resource hub in New Zealand) into practice. For example, she used to spend an entire day manually completing her GST, but with everything she’s learned through the program, it now takes her five minutes, she says. 

For Trudi, this kind of progress is what’s made the Xero For Good Ambassador Program so rewarding. “I’m just really proud to be a part of what Marisa’s achieved, and I have every confidence in Urban Floral Farmlet’s future,” she says. 

Trudi and Marisa’s tips for a successful mentoring relationship

1. Build trust first

Before launching into the numbers, spend some time getting to know one another. From a mentor’s perspective, the more context you have about who someone is and the type of business they’re operating in, the better positioned you are to help them. With this in mind, prioritise listening. 

2. Celebrate progress, not perfection

There’ll be stumbling blocks on the path to progress, but keep in mind that building financial fitness takes time and practice. So be sure to mark the wins, no matter how small they are. 

3. Remember, you get out what you put in

Signing up to the Xero For Good Ambassador program is a worthwhile commitment, but to get the most out of it, you have to want to be there. Be sure to show up, keep an open mind, and follow through on what you say you’ll do as a mentee.

Learn more and sign up for the Xero For Good Ambassador Program in Australia or New Zealand. 

The post How Urban Floral Farmlet found financial confidence appeared first on Xero Blog.