This article explains how clients can set up the Xero v2 integration on Deel.
In this article:
Setting up the Xero integration
✅ Step 1 – Connect to Xero
Select the App Store tab on your home page, select Xero, and then Connect.
✅ Step 2 – Authenticate Deel to access Xero and choose your Xero entity after reading about Deel's accounting integrations
✅ Step 3 - Select the entity you wish to map to your organization.
If you want to sync all new contracts with your integration automatically, you can enable that feature.
Click Complete Setup to finalize the integration.
✅ Step 4 – Connection Confirmation
After completing all connection steps, a success screen will confirm your connection and outline next steps.
Configure your bookkeeping modules by contract type - set things up to automate bookkeeping for employees you hire and pay using Deel.
✅ Payment Sync
This plugin allows you to map your payment methods to payment accounts.
You can map a default payment account that Deel will use for all invoice payments made using bank transfers or unmapped saved payment methods. You can select one default payment per currency.
You are also able to map each saved payment method to a payment account. You’ll be able to map new saved payment methods in Deel in settings.
✅ Document Sync
This plugin allows you to sync the PDF of the invoice and the attachment files with Xero by simply switching the toggle on or off.
✅ Vendor Management
This plugin allows you to link and manage vendors for your contracts, with options to automatically sync and create vendors or manage independent contractor vendors in your accounting system.
✅ Bill (Invoice) Sync
Use this plugin to complete your account mappings for your contractors. Map your expense accounts to define how your bills / invoices will be synced in accounts in Xero or choose to automatically sync invoices with Xero every time you pay contractors.
Xero Tracker Categories
Xero tracker categories help customers to categorize their spending with greater granularity (beyond chart of account mapping) in the way they define it.
It is possible to set up a maximum of 2 tracker categories in Xero.
Clients can set up and edit categories in Xero via their Advance Settings. Doing this maps the invoices from Deel to Xero, according to the tracker category that they set.
Categories cannot be configured during the initial setup process as this is an advanced feature, so it needs to be done once the integration has been set up.
Setting Up Tracker Categories
To map an existing tracker category in Xero to Deel, the client can do this on a default level or on the contractor level.
✅ Step 1 – Select the App Store tab on your home page
✅ Step 2 – Open the Xero integration and select Setings
You will see a Xero tracker category card.
If you have tracker categories set up in your Xero account, they will be pulled through to this card.
The default level will be set to "Uncategorized", but you can select a default option for each tracker category. This will then automatically be applied to all contractors whose invoices are being pulled via Deel, unless you choose to configure the trackers on an individual contractor level.
If you want to set up configurations on a contractor level, you will have to do so on a one-by-one basis:
✅ Step 1 – Go to the Contractor tab and select a contractor from the list.
✅ Step 2 – Review available tracker categories that can be configured
You can see the availabile categories on the box on the right-hand side
✅ Step 3 – Click on the tracker category to select which option you want it to map to
This will remove the default mapping and change it to their individual tracker setting.
Any invoices from this contractor going forward will now be linked to this tracker.
Setting Up Custom Expense Categories
You can assign invoice expense lines to different accounts or classes within Xero, according to the custom expense categories you set up in Deel.
[ACCORDION] Can I synchronize past invoices?
Yes, you can. To load past invoices, choose the date from which you want to sync retroactively.
[ACCORDION] Will my invoices be automatically synchronized?
Yes, Deel will automatically sync all the invoices starting from the date of integration.
[ACCORDION] How can I disconnect Xero?
Go to 'Integrations', select 'Settings' along the top, scroll down, and select 'Delete integration'. For step-by-step instructions, check this article
[ACCORDION] What if the person who set the integration up leaves?
You can set up an email notification to go to several inboxes so if someone is off, or has left the organization, there isn't a single point of failure.
[ACCORDION] Do I get notifications if there is an issue with the integration?
An email notification setting has been added to the Xero integration, and the user can add as many email addresses as they wish so people get notified.