Xero Integration
Use cases for freelancers and agencies
Automate your bookkeeping and make tax time painless. Freelancers and agencies in Xero-dominant markets (UK, Australia, NZ, South Africa) use the Xero integration to keep accounting current without end-of-month data entry marathons.
Always-current books
Every invoice you create in Plutio syncs to Xero within minutes. Your books are never behind, so no more scrambling at month-end to enter invoices you forgot about. When your accountant looks at Xero, they see every invoice, every payment, every client.
Simplified tax returns
At VAT/GST return time, everything is already in Xero. Your accountant can generate returns immediately without asking you to compile data or explain missing transactions. The integration preserves tax rates, so VAT/GST amounts are accurate without manual checking.
Payment reconciliation
When clients pay through Stripe or PayPal, the payment records in both Plutio and Xero. When the Stripe/PayPal payout arrives in your bank account, Xero's reconciliation matches it automatically. No hunting through emails to figure out which invoice got paid.
How to connect Xero to Plutio
Connecting Xero takes about 2 minutes. The integration is native, meaning no Zapier or third-party tools required.
Step-by-step connection process
- Log in to Plutio and go to Settings
- Click on Integrations in the left sidebar
- Find Xero in the list and click Connect
- Log into your Xero account when prompted
- Select your Xero organization (if you have multiple)
- Grant Plutio permission to sync invoices and contacts
- Choose which Xero revenue account should receive Plutio invoices
- Click Save to activate the connection
After connection
Once connected, new invoices sync automatically. Payments record as they happen. There is no manual sync button. The integration runs continuously in the background.
The entire setup takes about 2 minutes. Most time is spent choosing the correct revenue account.
What data syncs between Plutio and Xero?
The integration syncs invoices, payments, and contacts from Plutio to Xero. Data flows one-way to prevent conflicts.
Invoice sync details
- Line items: Description, quantity, unit price, tax rate
- Amounts: Subtotal, tax, total in original currency
- Client info: Name, email, billing address
- Dates: Invoice date, due date, payment terms
- Reference: Invoice number from Plutio
Payment sync details
When an invoice is paid via Stripe or PayPal, the payment amount, date, and method sync to Xero. The payment is recorded against the correct invoice for accurate aging reports.
One-way sync
Data flows from Plutio to Xero only. Changes made directly in Xero do not sync back to Plutio. This prevents conflicts and ensures Plutio remains your source of truth for client-facing documents.
How does VAT/GST handling work?
Tax rates configured on Plutio invoices sync to Xero. The integration preserves your tax calculations for accurate compliance.
Setting up tax rates
Make sure your Xero tax settings match your Plutio configuration:
- Configure your tax rates in Plutio (20% VAT, 10% GST, etc.)
- Ensure matching rates exist in Xero's tax settings
- Apply tax rates to invoices in Plutio as normal
- Tax amounts sync to Xero automatically
VAT/GST returns
If you are registered for VAT (UK) or GST (Australia, NZ), Xero's tax reporting features automatically include your Plutio invoices. Your VAT/GST returns are accurate without manual calculation or data entry.
Reverse charge and exempt
Special tax treatments (reverse charge, zero-rated, exempt) work as long as the corresponding tax rate exists in both Plutio and Xero.
How does this work with Xero's bank feeds?
Payments from Plutio appear in Xero and match against bank transactions automatically. Here's the complete flow:
Payment reconciliation flow
- Client pays invoice through Stripe or PayPal
- Plutio records the payment and marks invoice as paid
- Payment syncs to Xero against the correct invoice
- Stripe/PayPal sends payout to your bank account
- Bank transaction appears in Xero's bank feed
- Xero's reconciliation suggests matching the payout to recorded payments
Reconciliation in practice
When you open Xero's bank reconciliation, you'll see your Stripe/PayPal payouts suggested against the payments that were already recorded from Plutio. Click "OK" to match, so no hunting through records to figure out which invoice got paid.
Should I use Xero or QuickBooks?
Both integrate with Plutio, so choose based on your location and accountant preference.
Choose Xero if:
- You're based in UK, Australia, NZ, or South Africa
- Your accountant recommends Xero
- You need strong VAT/GST compliance features
- You want better integrations with UK/AU/NZ banks
Choose QuickBooks if:
- You're based in the US or Canada
- Your accountant recommends QuickBooks
- You need stronger US tax features (1099s, etc.)
- You want better integrations with US banks
If you already use one, stick with it. Both offer full integration with Plutio for invoice and payment syncing.
Can I connect multiple Xero organizations?
You can connect one Xero organization per Plutio workspace. For multiple businesses, create separate workspaces.
Single workspace setup
All invoices from any team member in the Plutio workspace sync to the connected Xero organization. Individual team members do not need their own Xero credentials. The workspace-level connection handles everything.
Multiple businesses
If you run multiple businesses with separate Xero organizations:
- Create a separate Plutio workspace for each business
- Connect each workspace to its corresponding Xero organization
- Invoices and payments for each business stay completely separate
This structure keeps each business's accounting clean and separate.
