Plutio + Xero Integration (2026): Automatic Accounting Sync

Keep your Xero books current without manual data entry or CSV exports. When you connect Xero to Plutio, every invoice you create in Plutio syncs to Xero automatically within minutes. Client details, line items, amounts, and due dates all transfer without any copying. When clients pay through Stripe or PayPal, the payment records in both Plutio and Xero simultaneously, so your books are always accurate.

Xero is the preferred cloud accounting platform for freelancers in the UK, Australia, New Zealand, and many other countries. Xero integrates deeply with local banks, handles VAT and GST compliance, and provides the multi-currency support that international freelancers need. If your accountant uses Xero, your synced invoices and payments are immediately visible to them.

Last updated January 2026

Plutio

Xero

Sync invoices

Via Zapier

10 min setup

What is Xero?

Xero is cloud-based accounting software popular with freelancers and small businesses in the UK, Australia, and New Zealand. Xero connects to local banks for automatic transaction imports, handles VAT/GST compliance, and provides multi-currency invoicing. Accountants often prefer Xero for its collaboration features and real-time access to client books. Xero offers Starter ($15/month), Standard ($42/month), and Premium ($78/month) plans.

TLDR: Plutio + Xero

Plutio connects directly to Xero with native integration. Invoices created in Plutio sync to Xero automatically. Payments received through Stripe or PayPal record in both systems.

Key facts: native integration (not via Zapier), invoices sync within minutes, payments auto-record in Xero, VAT/GST rates preserved, connect in 2 minutes, free on all Plutio plans.

Your accounting stays current without manual exports or end-of-month data entry.

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 - 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.

Invoice created: Syncs to Xero within minutes
Invoice paid: Payment records in both systems (via Stripe or PayPal)
New client: Contact created in Xero automatically
VAT/GST: Tax rates preserved in sync

How to connect Xero to Plutio

Connecting Xero takes about 2 minutes. The integration is native - 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's 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're 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 - 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 don't 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.

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Xero integration questions

Is the Xero integration free?

Yes. All Plutio plans include the Xero integration at no extra cost. Xero has its own subscription pricing starting around $15/month for the Starter plan.

Which Xero plan do I need?

All Xero plans work with the integration. The Starter plan has invoice limits (20/month). Standard and Premium plans have unlimited invoices.

How quickly do invoices sync?

Invoices typically sync within 2-5 minutes of being created in Plutio. Payments sync within a few minutes of being recorded.

Does this sync expenses?

Currently, the integration syncs invoices and payments (income) from Stripe or PayPal. Expenses are not synced. Most users manage expenses directly in Xero using bank feed imports.

Can I sync historical invoices?

The integration syncs invoices created after connecting. Historical invoices are not automatically imported to avoid duplicating data that may already exist in Xero.

Are VAT/GST rates preserved?

Yes. Tax rates configured on Plutio invoices transfer to Xero. Ensure your Xero tax settings match your Plutio configuration.

Can I connect multiple Xero organizations?

One Xero organization per Plutio workspace. For multiple businesses, use separate Plutio workspaces each connected to its own Xero organization.

What if an invoice fails to sync?

Plutio retries automatically. If issues persist, you receive a notification. Common causes: expired connection, mismatched tax rates, or account configuration issues.

Does this work with Xero's mobile app?

Yes. Invoices synced from Plutio appear everywhere in Xero, including the Xero mobile app.

Can team members access the Xero connection?

The Xero connection is workspace-level. All invoices from any team member sync to the connected Xero organization. Individual team members don't need Xero credentials.

How are refunds handled?

Refunds processed in Stripe or PayPal update the payment status in Plutio, which syncs to Xero. Credit notes may need to be created in Xero depending on your refund workflow.