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Shopify and Xero: How to Integrate Shopify with Xero Software

July 25, 2023

Written and researched by experts at AvadaLearn more about our methodology

CEO Avada Commerce

Shopify and Xero integration are powerful platforms that can revolutionize your business operations. Shopify and Xero seamlessly connect your online store and accounting processes. The following article will dive into the guideline and tips for utilizing this integration.

How to set up Shopify with Xero accounting software

To unlock the benefits of this integration to fuel your business success, follow this step-by-step guide.

Step 1: Connect your Shopify store

Navigate to the Shopify App Store and search for the Xero app.
Install and follow the prompts to connect your Shopify store to Xero.

Step 2: Connect your Xero organization

Sign into your Xero account and access the Apps section.
Search for Shopify and select the Shopify app.
Follow the instructions to authorize the integration between Shopify and Xero.

Step 3: Set up the integration

Configure the settings to meet your business requirements.
Specify how you order products and inventory to sync between Shopify and Xero.
Customize tax settings, payment methods, and other preferences.

Step 4: Purchase a subscription

Choose a plan that suits your business needs and budget.
Review the pricing details and confirm your subscription to activate the advanced features and benefits.

The Costs of Integrating Shopify and Xero Accounting Software

In addition to the monthly Shopify and Xero subscription fees, there is a monthly fee for integrating your Xero and Shopify accounts in Australia, New Zealand, and the United Kingdom. In other countries, Xero integrates Shopify for free.

		US	UK	Australia	New Zealand
Standard	Pricing	Not supported	$13/month
	Features		-For NZ, AU, and UK customers -Connect a single Shopify store -Sync unlimited orders -Manage sales tax -Access to 24/7 support via Xero Central
Basic	Pricing	Free	Not supported
	Features	-For US and Canadian customers -Connect a single Shopify store -Sync unlimited orders -Access to 24/7 support via Xero Central

You can upgrade from your Basic package to a Standard package anytime. The updated package lets you experience excellent features that suit your business needs.

Benefits of connecting Shopify with Xero

The Shopify-Xero integration provides invaluable benefits for online businesses, including:

Automated financial administration – Shopify’s daily sales summaries for each payment gateway are sent to Xero, simplifying reconciliation.
Elimination of spreadsheets – Combining Shopify’s sales tools with Xero makes accounting tasks more efficient.
Smooth transaction transfer – Shopify sales transactions are effortlessly moved to Xero without manual input.
Easy reconciliation – Transactions can quickly be matched with bank data in just a few clicks, saving time and effort.

Accurate data – Minimize manual data entry and monitor Shopify payments and PayPal fees for more transparent financial oversight.
Real-time tracking – Xero daily displays Shopify sales and fees, providing instant insight into revenue and profit.
Detailed financial analysis – Access to a thorough breakdown of costs and profits for effective financial performance review.
Cash flow management – Xero’s tools offer a comprehensive view of business performance and cash flow.
Insightful analytics – Use Xero’s robust forecasting and analytics to drive informed business decisions.
Mobile access – With Xero’s mobile app, you can stay updated on your business performance anywhere, anytime.
Improved decision-making – The integration provides detailed and summarized order information, enabling better business decisions.

Tips for getting the most out of the Shopify-Xero integration

Once you have successfully connected your Shopify account with Xero, here are some valuable tips to enhance your experience:

1. Use Shopify’s “Shopify Payments” feature

Utilizing the Shopify Xero inventory sync with Shopify Payments is one of the most effective methods.

By leveraging this feature, you can conveniently process credit card payments directly through Shopify, eliminating the requirement for a third-party payment processor. To activate Shopify Payments, merchants navigate to the Settings page within their Shopify account.

Once on the Payments page, scroll to the “Accept Credit Cards” section and opt for Shopify Payments.

2. Set up automatic payment processing

Utilizing the powerful integration between Shopify and Xero, automatic payment processing is another valuable feature to leverage. This functionality provides a seamless and efficient way to handle payments for due invoices.

Moreover, you also can streamline your workflow and save time by eliminating the need for manual intervention. This feature ensures that invoice payments are processed automatically, reducing the risk of delays or oversights.

3. Use Shopify’s order tracking feature

For online merchants using Shopify as their e-commerce platform, an invaluable tool at your disposal is the robust order tracking feature. You can easily monitor your order’s progress and status, gaining insight into their whereabouts throughout shipping.

4. Use Xero’s inventory management feature

Integrating Xero’s inventory management feature and Shopify ensures your inventory data stays synchronized across both platforms. Changes in sales, product details, and stock levels are automatically updated in real-time, reducing the risk of mistakes.

Using Xero’s inventory management feature, you have a single system to manage your inventory, monitor product variations and alternatives, handle adjustments, and track stock levels. As a result, your inventory management procedures become more efficient.

5. Use Shopify’s discount codes feature

If you’re using Shopify to sell products online, you can use its discount code feature.

Shopify and Xero: FAQs

How do I reconcile my Shopify payouts?

Export your Shopify payout statement: Go to Settings > Payments > View payouts > Select payout > Export.
Download your corresponding bank statement for the same period.
Match each transaction on your Shopify statement with your bank statement. Ensure the totals, including any fees or adjustments, match.
Note any discrepancies between the two. Minor ones may be due to timing differences or transactions yet to clear.
If any discrepancies persist, contact Shopify’s support team for resolution.
Record the successfli reconciliation and maintain a spreadsheet for tracking your reconciliations.

Apart from Xero, Shopify integrates with several other accounting software programs to streamline your financial management, such as

QuickBooks: Shopify integrates seamlessly with QuickBooks Online, allowing you to automatically sync your Shopify sales, expenses, and fees with your QuickBooks account. This integration helps merchants maintain accurate financial records and simplifies the reconciliation process.
QuickBooks Desktop: Shopify also offers integration with QuickBooks Desktop, enabling you to sync your Shopify data with QuickBooks Desktop versions like QuickBooks Pro, Premier, or Enterprise. This integration ensures that your accounting software accurately reflects your sales, inventory, and financial data in your accounting software.
Sage Intacct: Shopify integrates with Sage Intacct, a robust cloud-based accounting software. This integration streamlines your financial processes by syncing sales, inventory, and customer data, providing accurate and up-to-date financial information.
Wave: Wave is free accounting software that integrates with Shopify, making it an excellent choice for small businesses and startups. The integration allows you to automatically import sales and expense data from Shopify into Wave, simplifying your bookkeeping and financial reporting.
NetSuite: Shopify offers integration with NetSuite, a comprehensive cloud-based ERP (Enterprise Resource Planning) software. This lets you sync order and customer data between Shopify and NetSuite, facilitating efficient inventory management, order fulfillment, and financial consolidation.

Both Xero and QuickBooks are popular accounting software platforms offering various features for managing finances, invoicing, and reporting. Determining which one is better depends on your specific needs and preferences. When you choose between Xero and QuickBooks, consider the following factors:

Features: Analyze your company’s needs and compare the features each platform provides to find out which one best fits them.
Scalability: Consider how well the platform can scale with your business if you expect considerable expansion or have advanced accounting requirements.
User Interface: Test out the interfaces of both platforms to see which one you find more intuitive and user-friendly.
Integrations: Consider the third-party interfaces that each platform offers, including those with e-commerce platforms, payment gateways, and CRM systems, since they can improve your productivity.
Pricing: To determine which option best matches your budget, compare the pricing strategies and subscription structures of Xero vs QuickBooks.

If you need support connecting Shopify to Xero, several avenues are available.

Shopify Help Center: You can find comprehensive articles and tutorials on integrating Shopify with Xero. The Help Center provides instructions, troubleshooting guides, and frequently asked questions to assist you in the setup process.
Xero Support: Reach out to Xero’s customer support team for assistance. They have dedicated experts who can guide you through the integration process and help troubleshoot any issues that may arise. You can contact Xero support via email, phone, or online chat support.
Shopify Experts: Consider hiring a Shopify Expert specializing in integrating Shopify with Xero. Shopify Experts are certified professionals with expertise in various platform aspects.
They can provide personalized guidance, setup assistance, and ongoing support tailored to your business needs.
Community Forums: Engage with the Shopify and Xero community forums to seek advice from other users who have already integrated the two platforms. These forums are a great place to ask questions, share experiences, and learn from the community’s collective knowledge.

Leveraging these support options can ensure a smooth and successful integration between Shopify and Xero.

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Final Thoughts

With Shopify and Xero working together, you will save time, reduce errors, and gain valuable insights into your business performance.

Sam Nguyen

Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.