What's new in Xero (Spring 2025)

Anna Stubbs • April 9, 2025

Some great new enhancements have come to Xero in the first few months of the year, here's some important features that have been released:

 

Enhancements to the new invoicing

 

  • Keyboard shortcuts.
  • Drag and drop attachments.
  • Date Picker quick select.
  • Exchange rate adjustments in the invoice.
  • Tracking categories for invoices.


Automated bill entry

 

The ability to upload bills directly to Xero, create one or many bills by dragging and dropping multiple files. Xero creates draft bills with the key details, and the original document is attached.

 

Other important features (region dependent)

 

Bank feed updates (Australia adds Suncorp Bank, United States gains PNC Commercial).

Simplified whole operations with improved sales orders (United States).

Easier 1099 reporting and filing (United States).

Streamlined tax workflow and compliance (United Kingdom).

Easier reporting (United States Schedule C compliance report, New Zealand not-for-profit tier 3 & 4 PBE reports).


For the full breakdown read Xero's update.

Making Tax Digital to be extended to more sole traders and landlords

By Anna Stubbs • April 9, 2025
Hiding in the HM Revenue & Customs (HMRC) announcements published on 26 March was a technical note entitled ‘Modernising the tax system through Making Tax Digital‘. This note announces that the income threshold for Making Tax Digital for Income Tax & Self Assessment (or MTD for ITSA) is to drop to £20,000 per annum for sole traders and landlords. If you fall into this category, this means moving your tax completely over to digital by April 2026. But don’t worry, let’s see what MTD for ITSA is all about.

Reducing the uncertainty: financial forecasting and planning

By Anna Stubbs • April 9, 2025
Uncertainty can be a major threat to your strategic financial planning. Being unsure of what lies around the corner makes it difficult to make those important financial decisions around operational budgets, investment and growth funding. But by using forecasting and scenario-planning, you make it easier to manage your finances and reduce some of the financial uncertainty.

Your Newest Team Member is… Software?

By Anna Stubbs • April 9, 2025
Imagine this: you hire a new team member. On their first day, you throw them into the deep end with no onboarding, no guidance, and no feedback. Then, a month later, you wonder why they aren’t thriving. Sounds ridiculous, right? And yet, this is exactly how many businesses treat new software and processes. They buy a system, plug it in, and expect it to immediately deliver top-tier performance. But just like any human hire, technology needs time, support, and a structured path to success.  So, how do you embed new software or processes into your team the right way? The same way you would with any team member—by making sure it’s nurtured, monitored, and given the opportunity to grow with your business.