The Xero application is designed for free-lance workers, but is also described as opening the market to professional accounting firms. The new product is initially being distributed through Xero's partner channel and for a limited time will be included with Xero for free.

"Xero +C opens up a huge market opportunity for accountants," said Keri Gohman, president of Xero Americas. 

Xero says accountants can be hesitant to accept self-employed clients because dealing with them can be cost-prohibitive because of record-keeping issues. With the software automating the creation of Schedule C reports, professionals will be able to concentrate of providing advisory services.

Accountants can use bank feeds to receive their clients' transactions with the schedule C chart of accounts data mapped to the Schedule C report for their Xero Organization.

In conjunction with the of Xero +C launch, Xero announced a partnership with MileIQ, which plugs directly into Xero so users can automatically track mileage, classify their drives and report their activities.

Xero +C will be initially distributed through Xero's partner channels. For a limited time, Xero +C is included for free with Xero.