The Case Study

Xero Integration

The Challenges

Dhir Infotech was recently approached by a client, an established accounting firm with a problem. For years they have been tackling tax season without a proper automated application dedicated to tax planning for their larger clients that were running several separate businesses. Planning out tax payments was important especially since it was based on the overall performance of all the businesses their client ran. When the client needed to make tax deductible purchases, they needed to be able to view and analyse an evaluation that could help them better determine when and how a tax deductible purchase should be made. Being able to effectively evaluate and advise on their client’s businesses overall performance also helped our client retain their clients and increase profits. However, having to extract the information from Xero and then tabulate calculations was cumbersome and time-draining, and they needed a solution.

The Objectives

As developers, the best way to tackle this issue was to brainstorm solutions. Ultimately, we decided we needed to create an application that could integrate with Xero. The application would allow users to extract the relevant information from Xero without compromising on data privacy and security.

We also needed the application to be able to formulate calculations based on the information extracted as well as be able to manipulate the extracted data in order for our client to be able to input different scenarios based on different cases for tax planning purposes.

The Strategy

First, we obtained a document from our client detailing the information they required as well as the manual calculations they used for tac calculations. We then used Xero API Explorer to determine if we could effectively extract the relevant information required from Xero, with permission from our client. Having gained access, we then proceeded to use Xero developer tools provided as well as Xero API which allowed us to integrate our tax planning application with Xero.

As for security, Xero uses OAuth 2.0, which is a protocol that allowed our application access to the information we required. The OAuth 2.0 authorization framework allows a user to authorise third-party application access to their data without having to expose any of their private information. As an added security measure, this protocol allows our app limited access to our user’s account.

Our developers then formulated the calculations required and developed the application interface as per client requests.

The Solution

An application we call TaxPlanner. The application we developed has an easy user interface that successfully extracts relevant information from Xero and allows our client the freedom to input and manipulate variables where required for them to better plan their client’s taxes. The automated calculation feature saves them a lot of time and they are able to show their clients evaluations immediately without having to manually calculate and produce new evaluations each and every time.