Cloud accounting company Xero will launch in beta the first part of its cloud based tax platform next month, it announced at its Sydney roadshow yesterday. Xero revealed that a tax platform was on its roadmap at its New Zealand conference earlier this year.
The first phase would include two elements, tax file number declarations and BAS (business activity statement) lodgement. Xero Australia’s national sales manager David New showed screenshots of an extended payroll screen in Xero where an accountant or bookkeeper could upload a tax file number directly to the Australian Taxation Office. No AUS key (the ATO’s encryption password) was required.
Tax file number declarations were to be beta released next month and would go live “very early in the new financial year”, New said.
BAS statements could be uploaded from Workflow Max Practice Manager directly to the ATO without an AUS key. The BAS statements appeared in a new Tax tab in Workflow Max and used the software to auto-fill the forms, New said.
Xero has developed a suite of practice management software called Practice Studio that included financial reporting, electronic workpapers and workflow management. Tax has been the main component preventing Xero accounting firms from using only cloud-based software to run their practices.
Xero Practice Studio was free for Xero Silver and Gold partners.