Xero is an online accounting platform that supports small businesses. It is entirely cloud-based and performs fundamental accounting functions.
This software as a service (SaaS) accounting solution will help you prepare and file statutory accounts for your company’s year-end.
It performs this function with its Xero Tax software.
How Does Xero Tax Work?
Xero Tax is part of Xero HQ, the central accounting hub on the Xero platform. This means that if your accountant is a Xero partner, they have ready access to this software.
Essentially, Xero Tax creates a seamless end to end workflow between:
- Your company
- HMRC
- Companies House
This integrated system means you can file statutory reports and tax returns directly.
You can also check the status of any documents you’ve submitted, as well as submitting amended returns.
Xero Tax will perform validation checks and if it discovers any errors or issues, it will highlight them. This includes known errors and potential problems and helps to ensure that HMRC won’t reject any returns you submit.
Xero Tax produces statutory accounts for:
- Limited companies
- Small companies
- Micro-entities
- Sole traders
- Dormant companies
It supports both FRS 102 1A and FRS 105 compliance frameworks.
By using Xero for your statutory accounts, you can streamline the whole process of preparing and filing them.
This joined-up approach to accounting makes it straightforward to populate your company accounts with the cloud-based data you’ve stored with the Xero platform. You can also retrieve data from Companies House to go into your accounts.
How Can Xero Produce Statutory Accounts?
Xero Tax uses XBRL tags to format company year-end accounts automatically.
XBRL stands for extensible business report language. It is a standard for reporting financial data. Xero Tax applies these tags to the data you upload, which means computers will be able to interpret it.
XBRL tags are embedded automatically by Xero software. This ensures the correct formatting of your statutory accounts to meet current compliance standards.
What are the Benefits of Using Xero?
By using Xero for your statutory accounts, you save on time and you have the convenience of viewing your financial details in real time.
This is the perfect solution for keeping up with your company accounts, because you have easy, up-to-date visibility of your company’s financial performance and health.
Xero Tax automates the entire process of preparing and filing your company accounts, including abridged accounts for small companies and micro-entities.
Xero is a cloud-based platform so you can access your accounting information anywhere and at any time.
This is a fully integrated and streamlined accounting solution.
How We Can Help You
We’re an established practice of chartered accountants using Xero to support and advise our SME and startup clients.
Get in touch to find out more about how we can help you with your statutory accounts.
