Xero Integration with Your CRM

The Xero integration feature enables seamless synchronization of financial data between your CRM and Xero accounting software. This powerful connection automatically imports contacts from Xero and syncs invoices created in your CRM back to Xero, maintaining accurate financial records across both platforms.

What Synchronizes Between Systems

When you connect Xero to your CRM, the following data flows between the systems:

• Contacts: Active contacts import from Xero into your CRM initially for proper invoice mapping. If an invoice is created for a contact that doesn't exist in Xero, a new contact is automatically created during the sync process
• Invoices: All invoices created in your CRM are automatically created in Xero, including line items and discount details
• Taxes: Existing tax rates in Xero are applied to invoices. If a matching tax rate doesn't exist, a new tax rate is created and sent with the invoice
• Currencies: Invoice currencies are passed to Xero, and new currencies are added to your Xero organization if they don't already exist (requires multi-currency support in your Xero plan)
• Status Updates: Invoice status changes (such as Sent, Partially Paid, or Void) are synchronized to Xero in real-time

Key Benefits

This integration offers several significant advantages for your financial operations:

• Automatic contact synchronization maintains accurate customer records across both platforms
• Instant invoice transfer ensures payment statuses and tax details are always up-to-date
• Precise tax mapping handles even complex multi-component tax structures for compliance
• Filtered account display shows only payment-enabled accounts, keeping your financial data organized and relevant

Setting Up the Integration

Connect your CRM to Xero by following these steps:

1. Navigate to Settings → Integrations → Xero in your CRM's left navigation menu
2. Click the Xero tile and select Connect to open the authorization window
3. Sign in to your Xero account, select the organization you want to connect, and click Allow Access
4. Once connected, confirm the connection status in your CRM's Xero integration settings
5. Select a default account for invoices in the Xero settings pane within your CRM

How It Works

The integration operates through a carefully designed process:

Contact Import: When you first connect, your CRM imports active Xero contacts to ensure proper invoice mapping. If an invoice is created for a contact that doesn't match any imported contact, the system automatically creates a new contact in Xero during the invoice sync.

Invoice Synchronization: When you create and send an invoice in your CRM with the Sync to Xero option enabled, the system posts the invoice to your connected Xero organization with all relevant details including contact information, line items, taxes, and currency data.

Limitations: The integration does not currently sync receipts or expense entries, and it does not create or manage product/item catalogs in Xero—line items remain embedded within invoices only.

Best Practices

For optimal performance:

• Carefully set default account mapping in your CRM's Xero settings if you use accounting-specific tracking categories or custom revenue accounts
• Avoid mapping bank accounts to line items to prevent validation errors in Xero
• Regularly verify that your connected Xero organization has the appropriate currency support enabled for your invoicing needs