Fractional CTO for Xero Integration
Expert Xero Accounting Integration, Optimization & Support
Xero is a leading cloud-based accounting platform serving over 3 million subscribers globally, particularly popular in UK, Australia, and New Zealand markets. Integrating with Xero enables automated invoicing, expense tracking, bank reconciliation, and international multi-currency accounting workflows. Our fractional CTOs have built Xero integrations for SaaS companies, e-commerce platforms, and international businesses requiring multi-currency accounting. We navigate Xero's OAuth 2.0 authentication, implement proper double-entry accounting logic using Xero's API, handle international tax requirements (VAT, GST), and ensure compliance with regional accounting standards. Whether you need simple invoice automation, complex project-based billing, multi-entity consolidation, or international tax reporting, we deliver robust Xero integrations that automate financial workflows while maintaining accounting accuracy and compliance.
Common Use Cases for Xero Accounting
Automated invoice generation from subscription billing or project management systems
Expense tracking integration from corporate cards and receipt capture applications
Bank feed reconciliation automation for multi-currency accounts
Time tracking and project billing integration for professional services
E-commerce order synchronization with revenue recognition and tax calculation
Multi-entity consolidation for international businesses and holding companies
Inventory management integration for product-based businesses
Purchase order and bill processing automation with approval workflows
Financial reporting dashboards combining Xero and operational metrics
Payroll integration syncing employee expenses and contractor payments
Technical Requirements
APIs & Endpoints
- Accounting API for invoices, contacts, accounts, and transactions
- Assets API for fixed asset management
- Payroll API for payroll data (region-specific: AU, UK, US, NZ)
- Files API for document attachment management
- Projects API for project tracking and time sheeting
- Bank Feeds API for bank transaction import
- Webhooks (beta) for real-time event notifications
- Reports API for financial statement generation
Authentication
OAuth 2.0 with PKCE. Access tokens valid for 30 minutes, refresh tokens for 60 days. OpenID Connect for user identity. Token sets must be refreshed before 60-day expiration.
Available SDKs
- xero-node (official Node.js SDK)
- xero-python (official Python SDK)
- xero-ruby (official Ruby SDK)
- xero-php (official PHP SDK)
- XeroAPI.Net (official .NET SDK)
- xero-java (community Java SDK)
Rate Limits
60 API calls per minute per organization. Burst allowance to 300 calls. Daily limit: 5,000 calls per organization (can request increase). App-level rate limits: 10,000 calls per day.
Common Integration Challenges
Implementing proper OAuth 2.0 flow with refresh token rotation (60-day expiration requires monitoring)
Understanding double-entry accounting principles for journal entries and account mappings
Handling Xero's per-organization rate limits for applications serving multiple clients
Managing multi-currency transactions and exchange rate synchronization
Implementing region-specific tax rules (VAT in UK/EU, GST in AU/NZ, sales tax in US)
Dealing with Xero's eventual consistency and potential replication delays
Handling invoice payment allocation across multiple currencies and bank accounts
Implementing proper error handling for accounting validation errors
Managing chart of accounts mapping across different Xero organizations
Navigating Xero's app marketplace requirements for public app distribution
How We Approach Xero Accounting Integration
Our fractional CTOs start with accounting requirements analysis working with your finance team to understand chart of accounts, tax jurisdictions, multi-currency needs, and reporting requirements. We design integration architecture implementing proper double-entry accounting logic for all financial transactions. We use Xero's OAuth 2.0 with automated refresh token rotation monitoring. For multi-currency businesses, we implement proper exchange rate handling and unrealized gain/loss tracking. We configure appropriate tax rates and tracking categories matching your business structure. We build reconciliation workflows ensuring data integrity between your system and Xero. For SaaS businesses, we implement automated revenue recognition workflows following ASC 606 standards. Our integrations include comprehensive error handling, financial transaction audit logging, and monitoring dashboards tracking sync health and accounting data quality.
Total Timeline
10-14 weeks for comprehensive Xero integration
Investment Range
$25k-$65k for standard invoice/payment automation, $65k-$145k for complex multi-currency, multi-entity integration with custom revenue recognition
Best Practices for Xero Accounting Integration
Implement proactive OAuth refresh token rotation - don't wait for 60-day expiration
Use webhook notifications (if available) for real-time invoice/payment updates
Store Xero organization IDs and contact IDs for efficient mapping and updates
Implement idempotency for invoice creation using unique invoice numbers
Use tracking categories for departmental or project-based accounting visibility
Handle multi-currency properly with appropriate exchange rate dates
Implement comprehensive audit logging for all accounting data modifications
Use Xero's bank feeds API for automated bank reconciliation when possible
Leverage Xero's repeating invoice feature instead of building custom recurring logic
Build reconciliation reports detecting discrepancies between systems automatically
Respect rate limits with exponential backoff and request queuing
Security Considerations
Xero integrations must use OAuth 2.0 with proper token management. Store access and refresh tokens encrypted at rest. Implement refresh token rotation before 60-day expiration to prevent authorization loss. Never log sensitive financial data (account numbers, transaction amounts) in plain text. Implement proper access controls limiting who can authorize Xero connections and access financial data. For multi-tenant SaaS, ensure proper organization ID isolation preventing cross-client data access. Use HTTPS for all API communications. For public apps, comply with Xero's app partner requirements including security reviews. Implement audit trails for all accounting data access and modifications. Follow regional data privacy regulations (GDPR for UK/EU customers). Regularly rotate OAuth client secrets. Use Xero's scopes to request minimum necessary permissions. For sensitive industries, implement additional encryption for financial data at rest.
Ongoing Maintenance
Xero releases API updates regularly maintaining excellent backward compatibility. Monitor Xero's developer blog and API changelog. Ongoing maintenance includes monitoring and rotating OAuth refresh tokens before 60-day expiration (critical), handling Xero organization reconnections after token expiration, updating chart of accounts mappings as businesses evolve, managing tax rate changes for different jurisdictions, optimizing API usage patterns to stay within rate limits, implementing new Xero features (new endpoints, enhanced reporting), and ensuring compatibility when Xero updates APIs. We recommend monthly OAuth token health checks, quarterly reconciliation audits, and annual integration optimization reviews. Xero typically provides advance notice (6+ months) before deprecating API functionality. For marketplace apps, monitor Xero's app partner communications and maintain user-requested features.
What You Get
Success Story
Company Profile
International SaaS company with customers in UK, Australia, and US, needed automated multi-currency invoicing and revenue recognition
Timeline
12 weeks from requirements to full production deployment
Challenge
Finance team manually created 800+ monthly invoices in Xero from Stripe subscriptions, consuming 80+ hours. Multi-currency revenue tracking error-prone causing financial reporting delays. No automated revenue recognition leading to deferred revenue calculation errors. Bank reconciliation taking 3+ days monthly. Month-end close cycle averaging 12 days. Xero connections frequently expired causing invoice delays. No visibility into which Stripe customers mapped to Xero contacts.
Solution
Fractional CTO built comprehensive Xero integration with automated invoice creation from Stripe subscriptions in correct currency, OAuth token rotation monitoring preventing connection failures, automated revenue recognition journal entries following ASC 606, multi-currency payment reconciliation with exchange rate tracking, contact synchronization between Stripe and Xero, and financial dashboard showing revenue by region and currency.
Results
Invoice creation time reduced from 80 hours to zero monthly with complete automation. Month-end close cycle decreased from 12 days to 3 days (75% improvement). Revenue recognition errors eliminated with automated journal entries - zero restatements since implementation. Bank reconciliation time reduced from 3 days to 4 hours monthly. Xero connection uptime improved from 60% to 99.8% with proactive token rotation. Finance team reallocated from manual data entry to strategic analysis and FP&A. Multi-currency revenue reporting accuracy improved enabling international expansion planning. Audit preparation time reduced 60% with automated reconciliation reports. Company successfully completed international expansion to 5 new countries leveraging automated multi-currency accounting. CFO presented clean financials to board using Xero integration dashboards, facilitating Series C fundraising.
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