Advisory
Cloud System Automates Creation of Sch. C Reports from Expense Data
Dec. 06, 2017
Xero has launched Xero +C for self-employed clients. Xero is a maker of cloud accounting and management solutions for small businesses. Designed for the freelance workforce, Xero +C eliminates the need to manually sift through a year’s worth of expenses by providing an easy, automated way to create Schedule C reports with a customized chart of accounts and reporting template.
The gig economy has grown exponentially over the last two decades. In the past 20 years alone, the number of gig economy workers – those who operate as independent contractors, often through apps – has increased by about 27 percent more than payroll employees, according to a report by the Metropolitan Policy Program at the Brookings Institution. Additionally, nearly 57.3 million Americans – or 36 percent of the nation’s workforce – are now freelancing, according to the 2017 Freelancing in America study by the Freelancers Union and Upwork.
“Xero +C opens up a huge market opportunity for accountants,” said Keri Gohman, President of Xero Americas. “In the past, many accountants have been hesitant to take on self-employed clients due to the cost-intensive nature of collecting receipts and other information for this category of workers. With Xero +C, accountants can now focus more time on delivering advisory services that will help these self-employed clients succeed.”
With Xero +C, accountants and their clients can:
- Manage banking data quickly and accurately: Accountants can use bank feeds to receive their clients’ daily transactions. The Schedule C chart of accounts data is then mapped to the Schedule C report for their Xero Organization.
- Access a host of reports: Accountants can use what they need to get the work done, including cash flow statements, balance sheets and more.
- Leverage existing workflows: Accountants and their clients can work in a familiar setting with the tools they already use – such as Xero HQ, Find & Recode, bank rules and cash coding – and can quickly produce an accurate Schedule C report.
- Customize the work: Users can extend functionality by seamlessly adding popular third-party apps to their Xero workflow.
- Upgrade their account, not their data: Accountants can be more active advisors as Xero +C scales in line with their clients’ business. Users can easily upgrade to the next Xero solution without having to migrate or upgrade the data.
“Xero +C is specifically designed with the flexibility of the self-employed workstyle in mind,” added Gohman. “Instead of putting all the responsibility on the client, Xero +C enables self-employed workers to not only easily take control of their finances but also simplify how they can work with accountants. Our Make or Break report indicates that working with an accountant is key to success. Small businesses who work with an accountant grow their net profit 23 percent faster than those who do not. With the multitude of obstacles facing self-employed and small business owners today, Xero is committed to giving them the best chance for success with our products and unmatched network of advisors.”
In conjunction with the launch of Xero +C, Xero is also announcing a new partnership with MileIQ, enabling independent contractors to automatically track mileage, classify their drives and report their activity more accurately. Plugging directly into Xero +C, MileIQ will enable independent contractors to more accurately deduct their mileage on their Schedule C reports.
Xero +C will be initially distributed through Xero’s partner channels. For a limited time, Xero +C is included for free with Xero Cashbook and Xero Business Edition. Click here to learn more about Xero +C.