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Xero Sync - Best Practices

Document Overview

This document provides best practices when syncing between and Xero.


Best Practices

1. Contacts vs. Vendors/Customers

  • Vendors and Customers will connect to the same contacts in Xero, as long as the names match, and they have transactions in
  • If Contacts in Xero do not have transactions, assign them to one of the groups that we create: Sync to Vendors or Sync to Customers. If the Contact exists as both a Customer and a Vendor, add them to both groups.
  • If the names of Contacts in Xero do not match the Vendors/Customers in, then the Contact will be created as a new Vendor/Customer in, and the Vendor/Customer in will be created as a new Contact in Xero. 
  • Newly-created Contacts in Xero won't sync to until a transaction is created for them. When a transactions is created, Xero will categorize them and then sync them into as either a Vendor or a Customer.
  • Newly-created Vendors/Customers in will sync over to Xero in either the Sync to Vendors group, or Sync to Customers group. If a Vendor and Customer in have the same name, then they will sync as one Contact in Xero, but will be a part of both Groups.
  • In order to sync to, the contact address in Xero must be specifically in the "Postal Address" section. Also, the contact phone must be in the dash format (xxx-xx-xxxx) and not be in the "Mobile Phone" field in order to sync to

2. Archive vs. Delete

  • never truly deletes information. If you choose to Delete something in, we will remove it from view and consider it Archived. You can un-delete something you've deleted at any time.
  • Xero has the option to delete, which will truly delete records in Xero. If you delete something in Xero, that object will become Archived in

3. Tracking Categories

  • In Xero, categories named Location and Department must exist. If you don't set up these tracking categories in Xero, then Locations and Departments will never link with
  • When initially creating locations and departments, those will sync from Xero to and/or to Xero. Updates/deletions made to these items, however, will not sync from Xero to, and must be done in manually.

4. Reconciliaton 

  • makes one or two lump-sum withdrawals (depending on when you schedule your payments) for the total amount of bills paid on a given day. This withdrawal(s) are located in your Money Out Clearing account in Xero. When reconciling your bank account, you will need to reconcile once for all bills paid on a given day.

5. Chart of Accounts

  • To make a Chart of Account type Bank or Credit Card in, you need to create a bank account or charge account in Xero, and associate it to the corresponding Chart of Account.

6. Items

  • Items will sync two way between and Xero.  When entering in Sales Tax, these will only sync one way from Xero to 

7. Bills

  • Only unpaid bills sync from Xero into, so you should always initiate payments in On the Pay page you can pay via (check or ACH), or record payment made offline. The sync will send to Xero the related payment or check to be printed in Xero.
  • $0 bills will sync from to Xero as Paid
  • You can choose to have only Approved bills sync to Xero. Learn more here

8. Vendor Credits

  • Only unapplied vendor credits sync from Xero, so you should apply vendor credits in
    • When you make a payment with a vendor credit, we will sync it to Xero, where it gets automatically applied.
  • You can choose to have only Approved vendor credits sync to Xero. Learn more here

9. Credit Memos

  • Credit Memos don't sync to/from Xero. They need to be manually applied in both and Xero.

10. Bills/Invoices using Items

  • Always code the bill/invoice with an Account. The integration doesn’t sync the Account associated to an Item.

11. Bill/Invoice numbering

  • When numbering invoices/bills, each needs a unique number to avoid the sync number matching to an incorrect invoice/bill.  

12. AR Invoice Payments

  • AR payments in will only sync to Xero if applied to an invoice; overpayments/unapplied payments will not sync to Xero.



Xero Sync - Setup Guide

Xero Sync - FAQs

Xero Sync - At A Glance

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