Guide: Xero integration

Devon from Wagepoint
Devon from Wagepoint
  • Updated

If you use Xero to manage your company's accounting needs, you can integrate Wagepoint with your Xero account to better track your payroll expenses.

This article will show you how to integrate your Wagepoint and Xero accounts, as well as how to auto-sync or manually export your payroll data to Xero.

Note: Cashbook and Ledgers are not currently supported, but we're always looking to improve! If you'd like to see this feature in Wagepoint, share your feedback here.

Integrate Wagepoint 2.0 and Xero

Step one: Connect to Xero

1. In the navigation bar, go to Add-ons and Select Xero.

In the navigation bar, go to Add-ons.   Select Xero.

 

2. Click Connect to Xero.

Select Connect to Xero.
 
3. You’ll be redirected to the login page to enter your Xero credentials. Enter your email address and password for your Xero account. Then, click Log in.
You’ll be redirected to the login page to enter your Xero credentials. Enter your email address and password for your Xero account. Then, click Log in.

 

4. Click Allow access to authorize the connection.

Click Allow access to authorize the connection.
 
Once you've authorized the connection, you'll be redirected back to the Wagepoint app. 
 

Step two: Map your Chart of Accounts

Notes:

  • Parent mapping overrides child mapping, so you should set your parent mapping to apply to the most children and manually make any additional changes.
  • If there is an income code that you do not use, you must still complete the associated chart of account mapping. If it is mapped and you do not use it in Wagepoint, then nothing will be pushed to Xero.
  • We cannot map to Bank or System account types in Xero. You'll need to map these manually.
  • Please refresh the Chart of Accounts page if you don't see a recent update you've made to your Xero accounts.

1. In the navigation bar, go to Add-ons > Xero. Select the Chart of accounts tab.

In the navigation bar, go to Add-ons > Xero. Select the Chart of accounts tab.

 

2. You may be notified that some accounts that are part of our recommended settings are not mapped. Indicate whether you'd like Wagepoint to create and assign these accounts of your behalf: 
  • Select Yes if you’d like us to set up those accounts in Xero and automatically map your categories. You may still need to map some accounts yourself, such as tax rates. If a Chart of Account is not yet mapped, you will see an error and be able to edit manually.

  • Select No if you already have your Chart of Accounts set up and want to map each category yourself. 

Screenshot 2024-08-09 at 3.54.54 PM.png
 

How will you auto-map the Chart of Accounts in Xero to Categories in Wagepoint?

If you select Yes, we will create and auto-map a list of accounts for you. If you have an account with the same name already, we will use the one you already have.

 
Category in Wagepoint CoA name in Xero CoA account type in Xero Code Tax setting
Payroll clearing account Payroll clearing Current liability WP005 Tax Exempt 0%
Wages & earning expenses Wages & earning expenses Expense WP001 Tax Exempt 0%
Employee benefit expenses Company contributions

Expense

WP002 Tax Exempt 0%
Employee benefit liabilities Employee benefit liabilities Current Liability WP006 Tax Exempt 0%
Payroll tax expenses Payroll tax expenses Expense WP003 Tax Exempt 0%
Payroll tax liabilities Payroll liabilities Current Liability WP007 Tax Exempt 0%
Deductions liabilities Deductions Current Liability WP008 Tax Exempt 0%
Wages & earnings liabilities
Child : Net Pay: Manual
use same as Payroll Tax Liabilities, Payroll Liabilities      
Wages & earnings liabilities
Child: Controlled Tips
Tips Current Liability WP009 Tax Exempt 0%
Wages & earnings liabilities
Child: Vacation pay accrued
Vacation liability Current Liability WP010 Tax Exempt 0%
Payroll subscription fees Payroll processing fee Expense WP004  
 
3. To review or make changes to your chart of accounts mapping, locate the account and click View.
You can click View or Map to ....
 
 
4. Use the drop-down menu(s) to select the relevant chart of accounts. Then, click Save.
  • If you do not want an account mapped to Xero, select Do not map.
Click on Payroll clearing
 
5. If you have additional departments, select the relevant tabs and review or make changes to the relevant accounts.
Click on View

 

(Optional) Step three: Create tracking categories

1. Select the Tracking categories tab.
Click on Tracking categories
 

2. If you have not yet created any Tracking categories for your departments, click Let's do it to automatically generate recommendations.

Screenshot 2024-08-09 at 4.10.18 PM.png

 
3. Review the generated tracking categories and category options. Use the drop-down menus to make any changes.
Click on Open

 

Export your payroll data to Xero

Once you’ve completed the steps above, you are now ready to export your payroll data to Xero.

There are two ways to export your data:

Use Manual export to export payroll data into Xero manually

1. In the navigation bar, go to Add-ons > Xero. Select the Manual export tab.

2. Under Select a pay group, use the drop-down menu to select the relevant pay group.
3. Under Select a pay period, use the drop-down menu to select the relevant pay period.
4. (Optional) Under Note, add a note.
Click on Select a pay group
 
5. Use the checkboxes to indicate what should be included in your export.
6. Under Manual export for payroll subscription, use the checkbox to indicate if you'd like a subscription invoice included on your manual export. If so, use the drop-down menu to select the relevant billing period.
7. Click Export.
Click on Note (optional)
 

Use Automatic sync to export payroll data into Xero automatically

1. In the navigation bar, go to Add-ons > Xero, then select the Automatic Sync tab.

2. Select the checkbox next to Automatic sync.
3. Under Payroll transactions, use the checkboxes to indicate what should be included in your export.
4. Click Save.
Check Automatic sync (Turned on Aug 09, 2024)

After your payroll is finalized, the system will automatically export the information to Xero. 

 

Disconnect from Xero

1. In the navigation bar, go to Add-ons > Xero. Select the Additional support tab.
2. Under Disconnect from Xero, click Disconnect.
Click on Disconnect from Xero…
 
3. In the confirmation window, select Yes, disconnect.
Click on Yes, disconnect

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