Xero brings financial data into Microsoft 365 apps

Xero has launched an integration with Microsoft 365 that brings Xero financial data into Microsoft 365 applications.

The rollout begins with JAX, Xero's artificial intelligence tool, inside Microsoft 365 Copilot. Users can ask financial questions in Copilot and receive answers drawn from live data in Xero, with links back to Xero for tasks that must be completed in the accounting platform.

The move extends Xero's reach beyond its own software into products many small businesses and accountants already use for spreadsheets, documents, and presentations. It also reflects a broader push by software companies to embed finance and operational data in general workplace tools, rather than requiring users to switch between separate systems.

The integration is designed to support several common use cases across Microsoft's applications. In Copilot Chat, users can ask for information such as top customers or overdue payments, then follow direct links to Xero to take actions such as sending payment reminders.

In Excel, live data can be inserted into spreadsheets as structured tables. This allows users to work with profit and loss information, overdue invoices, and other financial records without relying on exported CSV files and manual data cleaning.

Word and PowerPoint are also included in the initial rollout. In Word, users can generate narrative paragraphs and report sections based on live financial information. In PowerPoint, they can create slides with charts, revenue trends, and other metrics drawn from accounting data.

Diya Jolly, Chief Product and Technology Officer at Xero, said the integration addresses a common problem for customers working across several applications.

"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," Jolly said.

"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," she added.

Data controls

The exchange of information between the two systems is limited to the user's active session. Xero also said proprietary business data from the integration is not used to train Microsoft 365 Copilot artificial intelligence models.

That point is likely to matter to accountants and small business owners handling sensitive financial records, particularly as artificial intelligence tools become more closely tied to bookkeeping, reporting, and planning. Questions around data access, model training, and auditability have become central to software buying decisions in the sector.

Microsoft also framed the partnership around access to real-time information inside familiar software. Bryan Allen, Director of Product Marketing for Microsoft 365 Copilot at Microsoft, said the arrangement would place Xero data directly in the applications customers use most often.

"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," Allen said.

"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," he added.

Broader shift

The agreement highlights how accounting software providers are trying to make their systems more central to daily work by linking them with office productivity suites. Rather than keeping finance data inside specialist software, vendors are seeking to place it inside the tools used for drafting reports, modelling scenarios, and preparing presentations.

For Xero, that could strengthen its position with small businesses and accounting firms that want fewer manual steps when moving from bookkeeping to analysis or communication. For Microsoft, the tie-up adds another source of business data to Copilot as it seeks to make the assistant more useful in everyday work.

Each interaction in Microsoft 365 connects back to Xero for deeper financial workflows. In practice, that means clickable links in Copilot Chat, hyperlinks in Word and PowerPoint, and Xero web addresses alongside data presented in Excel.

Xero plans to extend the integration to other Microsoft 365 applications, including Outlook and Teams.