Import a trial balance from Xero

Overview

If the entity you are preparing a tax return for uses Xero as their accounting system, you can link TaxLab and Xero directly, to pull trial balance data into the tax calculation in TaxLab. The Xero import allows data to be imported quickly and multiple times, and also uses Xero Reporting codes to automatically assign accounts, and complete tax return disclosures.

Setting Up

Before importing a trial balance from Xero, review the Financial Statement Template used on the Settings page. You will need to use the IRD minimum financial reporting requirements template for NZ or the Australian Financial Statements template for AU so that the reporting codes pull through from Xero. 

Importing from Xero

1. In TaxLab, open the entity’s income tax calculation.
2. Click the Workpapers tab > Accounts.
3. On the Trial balance page, click the Import arrow > Import from Xero.
   
4. On the Import from Xero window, click on Manage Connections > Add a Xero Ledger Connection.
   
5. Log in to your Xero account.
6. Select the organisation(s) you want to connect to.
7. Click on Continue with (1) organisation(s).
   
8. This should bring you back to TaxLab. Select the appropriate entity under Import From This Xero Ledger.
9. Optional items:
   • Optional: You can edit the date the data is included until. This is useful if you are completing a part-year return, or simply want to compare different time periods.
   • Optional: Round accounts to zero decimal places on import. Select this option if you would like to efile this tax return in AU.
   • Optional: Select the Import Reporting Codes check box.
     • If you select this option, the system will import the reporting codes from Xero, automatically assign the accounts and complete the tax return disclosures. If you do not select this option, you will need to assign the accounts manually. Once the account assignment has been made in year one, it will automatically roll over into year two.
     • If the tax return mapping was updated directly in TaxLab in year one, then untick Import Reporting Codes to maintain the tax return mapping from year one. Ticking Import Reporting Codes option will import the reporting codes currently in Xero.
   • Optional: Clear the Clean import check box.
10. Click the Import Data From Xero button.

Disconnect from Xero

1. In TaxLab, open the entity’s income tax calculation.
2. Click the Workpapers tab > Accounts.
3. On the Trial balance page, click the Import arrow > Import from Xero.
4. On the Import from Xero window, select Manage Connections and Disconnect this Ledger.

A message displays in a yellow banner informing you that you were successfully disconnected. Click the Close button to close the message.

Troubleshooting

If you see an error message ‘Xero – You are not permitted to access this resource without the reporting role or higher privileges.’, we recommend disconnecting the Xero ledger and then reconnecting again.

The error is provided by the Xero API and the user who is trying to import from Xero may not have the correct authorisation. 

A user needs access to run “Reports” in Xero in order to import the trial balance.

It is possible that the person who initially set up the connection has left or the connection has expired for some other reason.

What's next?

Now you can Assign accounts in a trial balance.

Related Articles

If you are working with a consolidated group, you can import trial balances for a group.

If you have entities that don't use Xero, you can Import a trial balance from Microsoft Excel.