Integrate with Xero

Xero is an easy-to-use online accounting software that's designed specifically for small businesses. For more information, please visit Xero.

How does the integration work?

iZettle lets you import your sales and payments data daily into your Xero account. The integration is easy and simple to set up, and once you've connected your Xero account, iZettle will automatically import your data into the bookkeeping accounts of your choice.

In order to get a better understanding of your iZettle payments and fees, we suggest that you create separate bookkeeping accounts for each set of data, making it easier to get a clear overview of transactions going in and out of your iZettle account and your bank account.

The guide below is a suggestion on how to set up your connection with Xero in the most straightforward way.

How to connect your iZettle account with Xero? (step-by-step)

  1. Sign in to your iZettle account
  2. Go to your Applications page (Menu > Settings > Applications)
  3. Click "Connect" on the Xero application. A window will open up where you need to insert your Xero login details. Please select which Xero organisation iZettle can access and click "Authorise". You can connect only one iZettle account to one Xero organisation.
  4. In order for the import to work seamlessly, you need to specify which iZettle data goes into which Xero account. Each transaction type can have a dedicated account in Xero.

Xero account type mapping

iZettle Account

Xero Account

iZettle sales

Revenue

iZettle refunds

Revenue

iZettle tipping

Current Liability, Non-current Liability

iZettle fees

Direct Costs, Overhead, Expense

iZettle payments (card, cash, invoice, online card, PayPal, mobile)

Current Asset, Bank Account

Cash Advance

Current Liability, Non-current Liability

Can I connect multiple iZettle accounts to Xero?

You can only connect one iZettle business account to one Xero organisation. 

When does the import happen?

When you set up the integration, you can select any date in the past to start the import. This will retroactively import data from iZettle to Xero for each day since the date selected. We recommend selecting a date within your current fiscal year in order to not alter any data in the period before the last closing of your books.

iZettle automatically imports data to Xero once every day at 00:00 GMT. Once you set up the integration, the first iZettle data will appear in Xero the next day. 

Can I change the start date after setting up the integration?

After the first successful data import between iZettle and Xero you cannot change the start date, as it would result in duplicated data for overlapping days. If you would like to import iZettle data to Xero for a time period before the selected start date, please reach out to iZettle Support, we can manually backfill data for you.

What data is shared between iZettle and Xero?

When you authorise the connection between iZettle and Xero you give permission to Xero to read your iZettle sales and financial data. You also give permission to iZettle to read your Xero organisation’s company, accounts, tax rates, customers, suppliers, invoices, bills, payments, balance sheets and bank statements.

How can I avoid double-counting purchases if I am using a POS other than iZettle and have already integrated with Xero?

If you are using a point-of-sale app other than iZettle that is already connected to Xero, switch off the “‘Synchronise sales data” option in order to avoid double-counting. In this case, you only need to sync iZettle fees data to Xero. You can do this by selecting an account for “iZettle fees” to record fees as an expense (bill), and you should also select an account for “iZettle Card Payments” to record payments for the expense. The iZettle fees are subtracted from card payments upon payout from iZettle to your bank account.

I’m an iZettle Pro user, how should I set up Xero integration?

You can set up the iZettle Pro - Xero integration in iZettle Pro. The only data that the iZettle Pro integration will not be able to import to Xero is the fees for iZettle card payments. In order to bookkeep fees, you can set up the integration in iZettle Go too, make sure to switch of syncing sales in order to avoid double bookkeeping and select and account only for “iZettle fees” and “iZettle card payments” to record the bills and the payment for the bills. 

Bank reconciliation 

In order for Xero to reconcile your iZettle card and cash payments, we need to do an initial 'Create' for your iZettle deposits. Once a deposit has been made into your bank account, this transaction will show up under your bank reconciliation page in Xero. The first time iZettle makes a deposit to your bank account in Xero, please create a match and select your iZettle Card or Cash Payments account as applicable. The next time you visit your Xero bank reconciliation page, Xero should automatically suggest the receive money transaction – you just need to click "OK".

The data sync has stopped and I’m missing iZettle data in Xero. What can I do?

Log in to the iZettle back office and navigate to the Applications page (Menu > Settings > Applications). Verify that your connection to Xero is still active, if not, your connection to Xero has been deauthorised – usually due to password or permission change in Xero – and you have to connect again.

If your connection is active, navigate to the Xero settings page and verify that you have a valid account selected for each required field. If an account is missing or has become archived in Xero, you will see an error message on the field. Make sure to select a new account and save the new settings. The integration will automatically backfill data for the missing period with the new settings from the next day. 

If all settings look good on the Xero page in iZettle, please check your Xero account and make sure that your subscription is active and you have not reached the maximum amount of invoices allowed within your subscription.

In case all of the above checks up, but the issue persists, please contact our support.

How does the data mapping between iZettle and Xero work exactly?

iZettle Sales 

Account mapping
Switch on to sync iZettle sales data in Xero if you are using iZettle Go as your point of sale. Switch off if you are using another point-of-sale system (e.g. Lightspeed, The Good Till, Revel) that already syncs sales data in Xero to prevent double counting. With the daily sales recording switched off, the iZettle integration needs only to record the fees and fee refunds (see below).

Sales are booked on a nominal account in the “Revenue” category. You can select an existing account from Xero or create a new nominal account in Xero to collect iZettle sales via the iZettle interface.

How does this data appear in Xero?
With daily sales recording switched on, iZettle pushes a single sales invoice to Xero each day. This invoice represents all sales made over the course of that day. The invoice will contain one line item for each tax rate, with this line item representing the total of all sales at that tax rate. If no sales have been made for a given tax rate on that day, the corresponding line item will be omitted. The sale will be recorded against the iZettle customer, and the sales account for all line items will be set to the iZettle sales account.

The sales invoice is marked as paid and is balanced by current asset accounts in Xero representing cash payments, card payments and other payment methods, which when settled can be reconciled in the Xero bank feed to reduce their respective balances to zero.

iZettle Refunds

Account mapping
Refunds are also booked on a nominal account of type “Revenue” and will appear on the Income section of a profit and loss report. When purchase refunds are recorded in Xero, the negative revenue will be booked to this account. It is typical to select the same account as for the iZettle sales account (see “Sales” above). However, a different account could be used if you want to report refunds separately within Xero.

How does this data appear in Xero?
iZettle pushes a single sales credit note to Xero each day. This invoice represents all refunds made over the course of that day. The credit note will contain one line item for each tax rate, with this line item representing the total of all refunds at that tax rate. If no refunds have been made for a given tax rate on that day, the corresponding line item will be omitted. The credit note will be recorded against the iZettle customer (see “Sales” above), and the sales account for all line items will be set to the iZettle refund account.

iZettle pushes refund payment data as “cash refunds”. A transaction will be recorded against the credit note for each payment type refunded. This refund will be taken from the selected account to receive payments for each payment type (see payment types below). 


iZettle Tipping

Account mapping
Your customers can add an extra amount to their bill when taking payments via an iZettle reader. Tips (also known as a gratuity) are booked on a nominal account in the “Liability” category. You can select an existing account from Xero or create a new nominal account in Xero to via the iZettle interface.

How this data appears in Xero

Gratuity is pushed to Xero as part of the daily sales invoice as a separate line item.

iZettle Fees

iZettle take a percentage commission on every card transaction processed by the iZettle card reader. iZettle also charges fees for iZettle invoice payments and Cash Advance, if these are applicable to you. The fees affect the amount deposited in your bank account, as they are subtracted from the card payment amounts upon payout. Due to this, the current asset (iZettle card payments) account would not be zero after completing reconciliation against the bank feed. The integration, therefore, creates a purchase invoice in Xero to account for iZettle fees. The payment for iZettle fees will be applied to the account used for iZettle card payments.

Account mapping

  • iZettle fees account – This is a nominal account of type “Expenses”, and will appear in the Expense section of a profit and loss report. When fees are recorded in Xero, they will be booked against this account.
  • iZettle fees supplier – Accounts Payable in Xero must be booked against a contact, representing the supplier to which the cash is paid.
  • The cash movement is from the account selected to receive iZettle card payments into (see “Payments” below), as this account should represent the iZettle liquid account.

How this data appears in Xero
iZettle pushes a single purchase invoice (bill) to Xero each day. This bill represents all fees taken by iZettle over the course of that day. The bill will contain a single line.

The bill will be recorded against the iZettle fees supplier, and the expense account for the line item will be set to the iZettle fees account.

A single payment is pushed for the full payment of the bill, representing the transfer of money out of the liquid account to pay the fees. This payment is taken from the account selected to receive iZettle card payments into.

For fee refunds, a single bill credit note is pushed each day representing all fee refunds processed that day. A “cash refund” payment for the whole value of the credit note is simultaneously pushed, so the bill credit note is fully paid (as no further cash is owed by iZettle). This payment is paid into the same account selected to receive iZettle card payments into.




 

iZettle Card Payments

Account mapping
iZettle supports either Xero Bank Accounts or Current Asset nominal accounts for payment accounts. Nominal accounts are supported for legacy reasons, however, we recommend that all new users use bank accounts for these accounts, as the Xero interface provides several useful reconciliation options for these account types. Bank Accounts are represented internally within Xero’s accounting system as Current Asset accounts; data will appear in the “Current Assets” section of the balance sheet report, regardless of which account type is used.

The account configured for iZettle card payments represents the iZettle liquid account.

How this data appears in Xero
iZettle pushes a single payment to Xero per day per payment type which has been used that day. So if you process ten card payments and twenty cash payments in one day, two payments are pushed. These payments are recorded against the daily sales invoice.



 

iZettle Online Card Payments

Customers can pay with iZettle Online Card Payments either via “Pay by link” in iZettle Go or in iZettle’s e-commerce platform. In Xero, online card payments work the same way as in-store card payments. We recommend you select the same nominal or bank account as for card payments.

iZettle Invoice

Account mapping
  • Invoice payments account – This is a bank account (or current asset nominal account) where payments against invoices are received. As invoice payments are handled by iZettle, this account should represent the iZettle liquid account, and thus be the same as the card payment account.
  • Invoice fees account – This is a nominal account of type "Expenses", and will appear on the expenses section of a profit and loss report. Payment fee transactions will be reconciled against this account.

How this data appears in Xero
An invoice is pushed to Xero as normal when an invoice purchase is made, however, a payment is not immediately pushed against the invoice, so the invoice is displayed with an outstanding balance.

When the customer has made a payment against the invoice, the payment is pushed against the original invoice. This payment is booked against the Invoice payments account, which should match the iZettle liquid account as this is where invoice payments are paid into. If the payment pays the invoice in full, at this point the invoice will be marked as paid in Xero.



 

Invoice fees are pushed in a similar way to standard iZettle card fees (see "Fees" above). A bill is pushed, recorded against the iZettle fees supplier, with a single line item with the expense account set to the Invoice fees account. A single payment is simultaneously pushed for the full payment of the bill, representing the transfer of money out of the liquid account to pay the fees. This payment is taken from the Invoice payments account.


iZettle Cash Advance

Account mapping

  • Cash Advance account – a nominal account of type “Current Liability”. This account will appear in the Liabilities section of a balance sheet report. The value of this account represents the amount of the loan principal that is yet to be repaid.
  • Cash Advance Fees account – a nominal account of type “Expense”. This account will appear in the Expenses section of a profit and loss report. Transactions pushed to this account represent fees on the advance paid to iZettle.
  • All flows of cash are pushed to the account configured for iZettle card payments, as this represents the iZettle liquid account. These cash flows are attributed to the iZettle contact (configured as part of the sales/fees sections of the config).

How this data appears in Xero
The advance transaction is pushed to Xero as a “receive money” transaction into the card payment bank account (the liquid account). This transaction is reconciled to the Cash Advance liability account, and thus increases the value on that account.


Repayments of the advance are pushed as “spend money” transactions into the card payment bank account (the liquid account). These transactions are reconciled to the Cash Advance liability account, and thus decrease the value on that account (representing the outstanding principal going down).

Advance fees are likewise pushed as “spend money” transactions into the liquid account but are reconciled against the Advance Fees expense account, representing a one-off cost to the business.

Need more help?

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Call us on: 0203 699 9934

Need more help?: help.uk@izettle.com