How to set up the Xero integration

It’s important to make sure your Xero account is all set up and ready to go before integrating it with your Timely account. In this guide we will cover how to:

1. Connect Xero to your Timely account.
2. Adjust your Xero invoice settings.
3. Map your Timely payment types to Xero accounts.
4. Import your Xero Contacts into Timely (Optional).
5. Assign Xero account codes to your services and products (Optional).

Connect Xero to your Timely account

The first step is to authorise the connection between the two accounts:

1. Head to Setup > Add ons in your Timely account.
2. Under the Xero section, click the Activate button.
3. At the Xero set up screen, click Setup Xero. You will be taken to Xero to allow access to your Xero account. 
4. You'll need to Allow access to Timely in your Xero account.

Note: If your business has multiple organisations set up under Xero, you need to select which organisation you want to connect to Timely.

     5. You'll then be redirected back to Timely to enter your additional settings. 

Note: If your business does not appear in the dropdown menu, it's likely you don't have the required permissions within Xero. A 'Standard' user role is the minimum requirement.

 

Adjust your Xero invoice settings

Now that the accounts are connected, you can adjust your Xero invoice settings. 

You will automatically be returned to this page, when you first connect the account, but you can return to this page to update the settings at any time under Setup > Add ons > Xero > Configure.

1. Click the Edit settings button:

   

2. You will see the Xero settings tab:
   

   

3. Set the default Sales account for invoices. You will be able to set individual sales accounts for services and products, so a generic, or widely used account is your best bet here.
4. Set the Status of on-account invoices. This determines if unpaid invoices will be synced to Xero as Draft or Approved. If they are synced as Draft, they must be manually approved in Xero before payments can be applied.
   
   

   Note: If you want to issue refunds in Timely, this setting must be set to Approved.

5. Then Choose invoice number to use for your Xero invoices. If you want numbers to match between systems, use the Timely generated number option.
6. Choose the Time of the day to sync invoices to Xero. Invoices, payments and refunds will be automatically synced in bulk at this time, but you can manually sync any invoices as required.
7. Set the Liability account for gift vouchers/customer credit/new packages (2).
8. Click Save to update your settings.

Map your payments types

You can map each of your payment types in Timely, to a different asset account in Timely. 

There are two main approaches for mapping and reconciling your payments:

1. Map your payments to a clearing account.
2. Map your payments to a bank account.

Our  How to reconcile your payments in Xero guide steps you through that whole process in more detail.

To select an account, it must have the following properties in Xero:

• Account type: Current Asset
• Tax (any tax type is acceptable)
• Show on dashboard watch-list (so you can track the balance of the account)
• Enable payments to this account

When you're ready, you can adjust the accounts that your payment types are mapped to:

1. Head to Setup >  Add  ons.
2. Click Configure next to the Xero integration.
3. Click the Edit settings button:
   
4. Go to the Account Mappings tab.
5. Choose a Xero account for each payment type:
   
6. Click Save to complete the process.

Import your Customers from Xero

If you've already been using Xero and don't have your customers in Timely yet, you can import them in bulk into Timely.

Check out our  How to import your customers from Xero guide for more detailed instructions.

 

Assign Xero accounts to your products and services

You also have the option to assign different Xero accounts to individual products and services.

You can update each product or service individually, but you can't apply one code to all services and another to all products.

Our  How to set individual xero accounts for products and services guide steps you through that process in more detail.