Xero: Setting Up Your Integration

Xero: Setting Up Your Integration



Introduction





Welcome to the this introductory guide to integrating Matters.Cloud with Xero. This step-by-step tutorial is designed to help you set up a seamless connection between the two platforms, allowing for efficient data synchronisation and streamlined process. With this integration, you'll be able to automatically sync financial information, such as invoices, payments, and client details, between Matters.Cloud and Xero.

Pre-Requisites

Matters.Cloud + Xero requires the following:
  1. A license of either Standard or Advanced edition of Matters.Cloud
  2. A license of either Standard, Premium or Ultimate edition of Xero per entity that you plan to connect.
Notes: 
 - Advanced edition of Matters.Cloud is required to support multiple entities.
 - Either Premium or Ultimate edition of Xero is required to support multiple currencies.
Overview

The Matters.Cloud + Xero integration allows users to:
  1. Export Clients from Matters.Cloud to create Customers in Xero.
  2. Export Matters from Matters.Cloud to create Tracking Categories in Xero.
  3. Export Invoices and Credit Notes from Matters.Cloud to create Invoices in Xero.
  4. Export Credit Notes from Matters.Cloud to create Credit Notes in Xero.
  5. Export Client / Trust Transactions from Matters.Cloud to create Bank Transactions in Xero.
  6. Import Invoice Payments from Xero to create Invoice Payments in Matters.Cloud.
  7. Import Bills to Pay from Xero to create Disbursements in Matters.Cloud.
The following diagram displays the key information flows between the applications:


Connecting Matters.Cloud with Xero

Step 1: Access The Integrations Portal

The integrations portal allows you to configure integrations with common cloud-based platforms.
To access the portal simply select Setup > Integrations and locate the following tile:



Step 2: Connect To Xero

Click the Connect button on the Xero tile and the following form will be displayed:


Enter your Email address and Password for Xero and click the Log in button.

The system will display a message asking you to Allow access as follows:



Click the Allow access button.

The system will then return you to the Integrations page and display connected on the Xero tile as follows:



Configure Integration Settings


Step 1: Configure Xero Accounts

Before you start publishing Invoices / Credit notes to Xero it is necessary to configure default Accounts for Fees and Expense line items with Xero.
From the Integrations page click the Settings button on the Xero tile.


Xero fees account

Firms generally link the Xero fees account to the default "Sales" account or create a separate "Fee Income" account within the Profit and Loss statement.

Xero expenses account

When deciding on the most appropriate account for Xero expenses (used for posting disbursements), consider whether you'll be posting to the balance sheet or the profit and loss statement. If you want to record each disbursement as an expense, you can map it to the standard "Other Income" account or create a custom "Disbursement Income" account in the Profit and Loss statement. On the other hand, if you plan to post these to the balance sheet, it's typical to map them to a specific "Disbursement Control" account.

Notes: 
 - Typically firms will map the Xero fees account to either the standard Sales account or create a dedicate Fee income account within your Profit and Loss.
 - The Xero fees account defined here acts as the default, but can be overridden by setting a specific account at either the client source, or matter type.
 - When determining the best account to use for the Xero expenses account (for posting disbursements) consideration should be given as to whether you intend to set this to post to the balance sheet or profit and loss. If you intend to book each disbursement as an expense, this can be mapped to the standard Other income account or to create a dedicated Disbursement income account within your Profit and Loss. However if you intend to book these to the Balance Sheet, this will typically be mapped to a dedicated Disbursement control account.
 - Either Premium or Ultimate edition of Xero is required to support multiple currencies.

Step 2: Configure Tracking Categories (optional)

Tracking categories wthin Xero let you add extra metadata to each transaction line. For example, on an invoice, you can assign a matter code to each line item, allowing you to analyze data at a matter level when reviewing information in Xero. This also enables you to include matter reference information on bank transactions recorded through the Client/Trust account in Matters.Cloud.

Please refer to the following knowledge base article:

Step 3: Submit Settings Form

Click the Submit button to update the Xero settings.


Configure Tax Type Mapping


To enable publishing of Invoices from Matters.Cloud to Xero, you need to set up the mapping between tax rates in Matters.Cloud and Tax types in Xero.

Step 1: Map Tax Types

Navigate to Setup > Invoicing > Tax types and follow these steps:
  1. Select the Tax type you want to create a mapping for and open it for editing by clicking on the Tax type name.
  2. Select the Tax rate you want to map to Xero and click the Edit button.
  3. Select the appropriate Tax rate from Xero and click the Submit button.
The following provides an example:


It's important to map all Tax rates, including any exempt or zero rates to ensure that all Invoices will be catered for when being published to Xero.

Setting Up Your Initial Data

Please refer to the following knowledge base article:

Contacting Xero Support

Futher information on using Xero is available from the Xero Central Support Site: 

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