Lovat launches integration with Xero
Edinburgh, June 11, 2024 – Lovat, a leading provider of automated tax compliance solutions, today announced a strategic integration with Xero, the global small business platform. This powerful partnership empowers businesses to seamlessly manage their VAT, GST, and sales tax obligations through real-time data synchronization.
The e-commerce and digital service landscapes are booming, but with this growth comes a rising tide of complex tax compliance challenges. With over 13,000 sales and use tax jurisdictions in the US alone, navigating tax regulations can be a daunting task for businesses of all sizes. A recent report revealed that a small business with just five employees spends an average of 163 hours, or over four workdays per person, solely on sales tax compliance.
This integration between Lovat and Xero streamlines tax compliance by automating the calculation, reporting, and filing of sales taxes and VAT. It eliminates the need for manual data entry, minimizes errors, and ensures businesses stay compliant with ever-changing tax rules across all applicable jurisdictions.
Benefits for Businesses of All Sizes
- Reduced Time Spent on Tax Compliance: Automating tax processes frees up valuable time and resources for businesses to focus on core operations and growth.
- Improved Accuracy: Lovat handles the complexities of tax calculations and reporting, minimizing errors and potential penalties.
Simplified Compliance Management: The combined power of Lovat and Xero offers a user-friendly platform that simplifies tax compliance, even for businesses without dedicated tax expertise. - Real-Time Data Synchronization: Financial data from Xero automatically syncs with Lovat, ensuring calculations are based on the most up-to-date information.
- Compliance Updates: Lovat stays on top of changing tax regulations, keeping businesses compliant and avoiding unnecessary risks.
Key Features of the Lovat-Xero Integration
- Quick and Easy Setup: Users can swiftly configure sales tax and VAT settings for each country and state where their business operates, including assigning tax attributes to products and services for effortless accuracy.
- Automatic Tax Calculations: Lovat automates tax calculations based on a business’s location, customer location, and product or service taxability according to relevant regulations.
- Comprehensive Tax Reports: Generate detailed reports summarizing sales tax and VAT obligations by country, state, jurisdiction, and exemption category, simplifying tax filing and enabling easy reconciliation with invoices before exporting data.
- Enhanced Financial Management: Lovat creates dedicated tax liability accounts for each applicable jurisdiction, ensuring accurate balance sheets and income statements without additional effort.
“We are thrilled to partner with Xero and empower our clients with a more streamlined and efficient approach to tax compliance,” said Olga M., CEO of Lovat. “This collaboration aligns with our mission to provide innovative solutions that simplify complex tax processes, allowing businesses to focus on achieving success.”
The Lovat-Xero integration is now available to all users of both platforms, offering immediate benefits for businesses seeking to optimize their tax compliance operations. This partnership exemplifies Lovat’s ongoing commitment to expanding its partner ecosystem and delivering comprehensive, automated tax solutions to its global customer base.
About Lovat
Lovat is a leading provider of automated tax compliance solutions, specializing in VAT, GST, and sales tax reporting for e-commerce and digital service businesses. Headquartered in Edinburgh, Lovat leverages advanced technology to streamline tax processes and ensure accurate compliance across multiple jurisdictions.
About Xero
Xero is a global small business platform that connects businesses with their financial data, advisors, and a thriving ecosystem of connected apps. Xero’s online accounting software empowers businesses to manage their finances, encompassing invoicing, payroll, tax compliance, and reporting.