Xero launches Microsoft 365 integration for finance

Xero has launched an integration with Microsoft 365, bringing Xero financial data into Microsoft 365 Copilot.

The integration gives small businesses and accountants access to live financial information inside Microsoft applications, including Excel, Word, PowerPoint and Copilot Chat.

At launch, Xero said its AI tool JAX will handle actions within Microsoft 365 Copilot to answer financial questions and provide tailored insights. Users can then follow links back to Xero to complete tasks or continue deeper financial work.

The setup is designed to reduce the need to switch between systems when preparing reports, checking debtor positions or analysing business performance. Xero remains the main system of record for financial information, while Microsoft 365 serves as the working environment for drafting documents, building models and preparing presentations.

How it works

In Copilot Chat, users can request text summaries and action confirmations based on information from Xero. Examples include identifying top customers, checking overdue payments and linking directly to Xero to send payment reminders.

In Excel, the integration supports financial modelling with structured tables populated by live Xero data. Xero said this removes the need for manual CSV exports and data cleaning, allowing users to work with profit and loss figures, overdue invoices and other accounting information in spreadsheets.

In Word, the integration can generate report sections and narrative paragraphs using current figures from Xero. Use cases include board papers and loan applications that require up-to-date financial summaries and accounts receivable data.

In PowerPoint, it can automatically create slides with native charts, revenue trends and business metrics. Xero said users can build presentations showing metrics such as the top five customers by revenue or year-on-year growth.

Executive comments

Diya Jolly, Chief Product and Technology Officer at Xero, said the product is designed to reduce friction when users work outside the accounting platform.

"Business owners are constantly switching between tools and losing financial context when they are working outside of Xero. Bringing JAX into the Microsoft ecosystem is another major milestone in our push to remove operational complexity for our customers," said Diya Jolly, Chief Product and Technology Officer at Xero.

"Whether you're forecasting in Excel or building a pitch in PowerPoint, Copilot can instantly surface the insights behind your business's financial health, with a clear, seamless path back to Xero as the source of truth and destination for deeper work," Jolly said.

Microsoft also commented on the integration and its use across everyday office software.

"With financial intelligence from Xero accessible in Microsoft 365, Xero customers will have real-time, data-backed insights right in the apps they already use every day," said Bryan Allen, Director of Product Marketing, Microsoft 365 Copilot at Microsoft.

"In today's dynamic business environment, we look forward to seeing this integration deliver new levels of operational efficiency for small businesses and accountants around the world," Allen said.

Data handling

Xero said data governance is central to the integration. It said financial data shared between the platforms is used only for the user's specific session and is not used to train Copilot AI models.

That point is likely to be closely watched by accountants and small business owners adopting AI tools for sensitive financial workflows. Questions about where business data sits, how it is processed and whether it feeds into broader model training have become a key issue in software procurement.

Broader AI push

The launch also fits into Xero's broader effort to embed AI across its products. The company described JAX as part of its AI-led operating system for small businesses and accountants, with human oversight remaining part of the process.

Xero has framed the Microsoft integration as a way to bring accounting data into tools many office workers already use throughout the day. Rather than keeping analysis and document production inside a single accounting interface, it is seeking to let users pull current figures into mainstream productivity software while maintaining Xero as the underlying source of financial records.

The approach reflects a broader pattern in business software, with specialist platforms trying to meet customers inside large workplace ecosystems instead of requiring them to log in to separate systems for each task. In accounting, that can mean moving from bookkeeping to spreadsheet analysis, management reporting and presentation preparation in a single workflow.

Xero said every interaction in the integration connects back to its platform through clickable links, hyperlinks or direct URLs alongside spreadsheet data. It said Xero remains the destination for completing key financial workflows.