How do I create a Cost of Goods Sold account and an Inventory Asset account in Xero?

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.
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STEP 1. Go to Chart of Accounts

Ledger accounts are created in Xero Accounting by going to Accounting > Chart of Accounts.
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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.