Before You Start

This guide assumes you have active Stripe and Xero accounts, and basic familiarity with both platforms.

Overview

35 min
Setup Time
Intermediate
Difficulty
Daily
Maintenance

What You’ll Learn

  • How to connect Stripe Invoicing with Xero
  • Automating invoice generation and delivery
  • Setting up automated payment reminders
  • Streamlining payment reconciliation in Xero
  • Monitoring your AR aging report for faster cash flow

1. Preparation Steps

Before linking Stripe and Xero, ensure your accounts are ready for seamless integration:

Required Configurations

  • Stripe: Configure your invoicing settings (payment methods, branding).
  • Xero: Ensure your Chart of Accounts includes a ‘Stripe Bank Account’ and appropriate ‘Sales Income’ accounts.
  • Consistent customer data across both platforms.

Recommended Enhancements

  • Stripe: Set up custom invoice templates.
  • Xero: Configure tracking categories for detailed reporting.
  • Email templates for automated reminders.

2. Choosing Your Integration Method

You have several paths to connect Stripe Invoicing with Xero.

Method A: Native Xero Integration (Manual Sync)

Xero offers a direct integration that allows manual invoice import.

Pros:
  • Free and built-in.
  • Good for low volume or specific manual control.
  • Basic invoice data transfer.
Cons:
  • Requires manual triggering.
  • Limited automation for reminders and payments.
  • No real-time sync for payments.

Method B: Third-Party Automation Tools (e.g., Zapier, Make)

For full automation, a third-party tool is highly recommended.

Expert Tip: We strongly recommend using a dedicated automation tool like Zapier or Make. These tools enable real-time sync of invoices and payments, trigger automated reminders, and vastly improve reconciliation accuracy.

3. Step-by-Step: Automating with Zapier

Here’s a common workflow for automating Stripe Invoicing with Xero using Zapier (or similar tool).

Here is a sample code block to show how an invoice object might look.

{
  "invoice_id": "inv_123XYZ",
  "customer_email": "client@example.com",
  "amount_due": 500.00,
  "currency": "USD",
  "description": "Monthly Consulting Services",
  "status": "draft"
}

4. Setting Up Your Automation Workflow

  1. 1

    Choose Your Trigger

    Trigger: “New Invoice Finalized in Stripe” or “New Customer in Stripe.” This initiates the workflow when an invoice is ready or a new client is added.

  2. 2

    Create Invoice in Xero

    Action: “Create Sales Invoice in Xero.” Map fields from Stripe to Xero, ensuring accurate customer, item, and amount details.

  3. 3

    Record Payment in Xero

    Trigger: “Invoice Payment Succeeded in Stripe.” Action: “Create Payment in Xero.” Automatically record the payment against the corresponding invoice in Xero, linking to your Stripe Bank Account.

Common Issue: Duplicate Invoices

Always ensure your automation is designed to prevent creating duplicate invoices in Xero. Use a ‘Find Invoice’ step before creating a new one based on a unique identifier (like an invoice number).

5. Testing Your Automation

Automation Test Checklist

  • Create a test invoice in Stripe.
  • Verify it appears correctly in Xero.
  • Process a test payment in Stripe.
  • Confirm the payment is recorded and reconciled in Xero.
  • Check for correct tax application and account mapping.
  • Monitor automation logs for errors.

Need Help?

Get Support

Having trouble setting up your automated AR workflow? Our team specializes in Stripe and Xero integrations.

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