Xero is a cloud-based accounting platform designed for small businesses. It provides invoicing, bank reconciliation, payroll, reporting and integrations with over 1,000 third-party apps.
Xero is one of the world's most popular small business accounting platforms, used by millions of businesses globally. As a cloud-based system, it is accessible from anywhere and always up to date. Key features include automatic bank feeds (importing transactions from your bank in real-time), invoicing and quotes, bill management, payroll (in supported countries), financial reporting, multi-currency support and a marketplace of over 1,000 integrations. Xero uses the double-entry accounting system and supports both accrual and cash-basis reporting. It is MTD-compliant in the UK, supports GST/BAS reporting in Australia and handles VAT in multiple jurisdictions. For accountants and bookkeepers, Xero offers practice management tools through Xero HQ. SortBooks is purpose-built for Xero, using the official Xero API to help with transaction categorisation, reconciliation suggestions and AI CFO answers from live data. By connecting SortBooks to your Xero account, you get AI-powered bookkeeping that works within your existing Xero setup.
SortBooks helps with the bookkeeping behind xero by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing xero by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
A bank feed is an automatic, real-time connection between your bank account and your accounting software that imports transactions directly, eliminating manual data entry.
Bank reconciliation is the process of matching your accounting records to your bank statement to ensure they agree. It identifies discrepancies, errors and missing transactions.
Cloud accounting uses internet-based software to manage your business finances. Data is stored securely online and accessible from any device with internet access.
The chart of accounts is a structured list of all accounts used in your accounting system to categorise transactions. It defines the categories for your income, expenses, assets, liabilities and equity.
Making Tax Digital is a UK government initiative requiring businesses to keep digital records and submit tax returns through HMRC-compatible software.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.