As Xero Platinum Partner, we believe in keeping our clients informed whenever meaningful enhancements are introduced to the Xero platform. The past few weeks have brought some of the most significant updates we’ve seen in years. At Xerocon London earlier this month, Xero unveiled a range of AI-powered tools designed to reduce administrative tasks, strengthen cash flow, and provide deeper insight into business performance.

While many of these updates make use of artificial intelligence, they are designed to support – not replace – your existing processes. You remain in full control of what is enabled and how it is used.  Here are the updates we believe will be of greatest value to you and your business:

1. Meet JAX – your AI finance partner in Xero

The biggest announcement from Xerocon London is JAX (Just Ask Xero), Xero’s new AI platform that now sits at the heart of the product. JAX can intelligently match and reconcile bank transactions in real time. New features currently being rolled out will also enable it to follow up on overdue invoices with personalised, automated payment reminders based on each customer’s payment history. The result? Less time spent on administration, faster payments and improved cash flow.

If you’re cautious about AI, you remain in control. JAX doesn’t act without your approval. Its features are entirely optional – you decide what to enable, and it only works on your information when you give permission. If you prefer to continue working as you always have, nothing changes. If you’d like to explore its capabilities, you can start small – for example, by allowing it to suggest bank reconciliation matches for your approval – and expand from there.

If you’d like to understand exactly what JAX can and can’t access before enabling any AI features, our team would be happy to guide you through it.

Read more: Xerocon London 2026 announcements

2. Smart Document Capture – available now

Simply photograph or upload a bill, receipt or source document and JAX extracts the relevant information directly into Xero, eliminating manual data capture. Because everything happens within Xero, documents are captured, extracted, matched and reconciled on one platform. When JAX reads a document and helps you create a transaction, it is ready to be matched when the bank feed arrives – no switching between tools and no extra steps. If you or your bookkeeper still spends hours processing paperwork – or searching for documents while on the move – this update could save a significant amount of time.

Read more: Smart Document Capture

3. Our recommendation: Paysoft Flow for easy, secure payments

One of our favourite tools in the Xero ecosystem – and one we confidently recommend to our clients – is Paysoft Flow. It integrates seamlessly with Xero, allowing you to pay multiple supplier invoices in bulk directly from your Bills to Pay list, with payments automatically reconciled back into Xero once processed. It also facilitates debit order collections from any South African bank account, verifies bank account details before payment to reduce costly rejections, automatically emails remittance advices to your suppliers, and supports multi-level approvals for stronger financial control. Transaction fees are typically lower than traditional online banking, helping businesses save both time and money. Paysoft Flow is a proudly South African solution and was recognised as a Xero South Africa App of the Year finalist in both 2024 and 2025.

Read more: Paysoft Flow on the Xero App Store, or speak to our team about getting started.

4. See how your business compares with industry benchmarks

Xero Analytics now includes industry benchmarking, allowing you to compare your business’s performance against similar businesses within your industry. It’s a powerful way to answer one of the most important questions every business owner asks: “How does my business compare with others in my industry?”

Read more: Xero product updates

5. Bank feed news: Investec users – action required | FNB users – good news is on the way

Xero has introduced a new Investec Corporate direct bank feed, providing a faster and more reliable connection than the previous feed. Importantly, the previous Investec feed version was discontinued on 1 July 2026. If you bank with Investec and haven’t yet updated your connection, your bank transactions are no longer importing into Xero automatically.

The update takes less than five minutes: log in to Xero, go to the Accounting menu, select Bank accounts, click to update your bank connection and follow the prompts. If you’re connecting an Investec account for the first time, simply search for Investec Corporate when adding a bank account. If you prefer some assistance, please get in touch – our team will gladly help.

There’s good news on the way for FNB customers too. An improved direct FNB feed is currently in development, and we’ll keep you informed as soon as it’s available.

Read more: Investec Corporate direct feeds | How to update your bank connection

6. Access your Xero data wherever you work

Xero’s new integrations with Microsoft 365 Copilot and Anthropic’s Claude allow you to securely interact with your live Xero financial data directly from the applications you already use every day. Whether you want to check your cash position or invoice status, you’ll be able to do so without switching between applications.

Read more: Xero + Microsoft 365 integration | Xero + Claude

7. Reporting that delivers real business insight: meet Syft

If Xero’s standard reports leave you wanting more, Syft is the answer. Originally founded in Johannesburg and now owned by Xero, Syft transforms your Xero data into clear, easy-to-read management reports, interactive dashboards, KPIs, budgets and cash flow forecasts. It also provides AI-powered summaries that explain what the numbers mean for your business. It’s the most widely used reporting and insights application in the Xero App Store and powers much of the new Analytics experience within Xero itself. Whether you are looking for monthly management reports, a live dashboard for your executive team, or a clearer view into future cash flow, Syft helps turn financial data into meaningful business insight.

Good news: As a Xero Platinum Partner, we may be able to assist you with access to a free version of Syft. Contact saas@asl.co.za to find out how we can assist you.

Read more: Syft Analytics

8. A reminder about the new VAT registration threshold

From 1 April 2026, the compulsory VAT registration threshold increased from R1 million to R2.3 million. If your annual turnover now falls below the new threshold, it may be worth reviewing whether remaining VAT registered is still the most appropriate option for your business. Please speak to your ASL adviser if you’d like to review your position.

Read more: SA small business tax guide 2026

Not on Xero yet?

If you’re still managing your finances using spreadsheets or legacy accounting software, now is an excellent time to consider moving to Xero. As Xero Platinum Partners, we manage the entire migration process – from setup and VAT configuration to bank feeds and training – ensuring a smooth transition with minimal disruption to your business. And the time you save? Priceless!

Interested in switching to Xero? Reach out to our team at saas@asl.co.za – we’d love to help.