taxomate will automatically create a Cost of Goods Sold account and Inventory Asset account for you in Xero during Quick Setup. However, the following steps will show you how to create your own.
STEP 1. Go to Chart of Accounts
Ledger accounts are created in Xero Accounting by going to Accounting > Chart of Accounts.
STEP 2. Select Add Account
STEP 3. Create Cost of Goods Sold Account
For Account Type select Direct Costs (under Expenses). For Name and Code, you can choose any you would like.
STEP 4. Create Inventory Account
For Account Type select Current Asset (under Assets). For Name and Code, you can choose any you would like.
STEP 5. Select Account in taxomate
Once you created your accounts in Xero, you can return to taxomate and select your new accounts in Settings > Inventory.