Xero Shopify integration

Why Xero and Shopify integration matters

Without proper integration, ecommerce accounting is manual and error-prone:

Orders from Shopify need to be entered into Xero as invoices. Doing this manually is time-consuming and creates delays in financial reporting. As order volumes grow, the workload becomes unsustainable.

Payment reconciliation is complicated by Shopify's payout batching. A single bank deposit may settle dozens of orders minus fees and refunds. Matching this to individual orders without integration requires tedious detective work.

Refunds and returns create credit notes that need to be tracked. Manual handling leads to mismatches between your bank account and your books.

Multi-currency selling adds complexity. Orders placed in different currencies need correct exchange rate handling for accurate revenue reporting.

A well-configured Xero integration solves these problems by automating the flow of financial data from Shopify into Xero, with proper mapping to your chart of accounts.

What Xero Shopify integration includes

Starcodia configures Xero integration based on your accounting requirements. Common data flows include:

Orders as invoices. Shopify orders are created as invoices in Xero, with line items mapped to the correct revenue accounts. Shipping, taxes and discounts are handled according to your chart of accounts structure.

Payments and payout reconciliation. When Shopify pays out to your bank, the integration matches the deposit to the invoices it settles. Payment processor fees are recorded correctly, and the reconciliation trail is clean.

Refunds as credit notes. When refunds are processed in Shopify, credit notes are created in Xero and linked to the original invoices. Your accounts receivable stays accurate without manual adjustment.

Customer records. Customer data can sync between Shopify and Xero, though many businesses use Xero primarily for B2B invoicing and keep B2C customer management in Shopify.

Cost of goods sold. For businesses tracking COGS, integration can include product cost information so Xero reflects accurate gross margins.

Xero integration apps Starcodia works with

Several apps connect Shopify and Xero with different capabilities. Starcodia evaluates options based on your requirements:

A2X. A2X is designed specifically for ecommerce accounting, with strong support for payout reconciliation, multi-currency and marketplace integrations. It posts summarized or individual invoices based on your preference and handles fees and refunds correctly.

Amaka. Amaka provides automated syncing with flexible scheduling and good support for Australian GST requirements. It works well for businesses that want simpler setup with solid core functionality.

Custom integration. For requirements that apps do not cover, such as specific account mapping logic or integration with other data flows, Starcodia builds custom solutions using the Xero API.

App selection depends on your order volume, currencies, need for inventory sync, and how your accountant prefers to work. Starcodia advises on the right choice during discovery.

Xero integration scenarios

Accounting requirements vary by business size and structure. Here are patterns Starcodia has configured:

Growing DTC brand. A beauty brand selling direct to consumers needed automated bookkeeping as order volumes grew beyond what manual processing could handle. Starcodia configured A2X with daily summary invoices, proper fee tracking, and multi-currency support for international orders.

Multi-channel retailer. A retailer selling through Shopify and Amazon needed consolidated accounting in Xero with clear revenue separation by channel. Starcodia configured integration for both channels with tracking categories so reporting shows performance by sales channel.

Subscription business. A subscription business needed recurring revenue tracked correctly in Xero for MRR reporting and churn analysis. Starcodia configured integration to handle subscription orders with proper revenue recognition timing.

Results from Xero integrations

Starcodia has configured Xero integration for Shopify businesses across consumer goods, fashion, beauty and subscription models.

Well-configured Xero integration typically reduces bookkeeping time by several hours per week, eliminates reconciliation errors, and gives business owners accurate financial visibility without waiting for month-end processing.

For more comprehensive accounting needs including inventory valuation and purchase orders, see QuickBooks Online integration.

Speak with Starcodia about Xero integration

If you use Xero and want to automate your Shopify accounting, Starcodia can recommend the right approach, configure the integration, and ensure your chart of accounts mapping works correctly.

Share your current accounting setup, order volumes, and any specific requirements like multi-currency or multi-store, and the team will outline a practical approach.