How To Set Up the Xero Integration On Deel

This article explains how clients can set up, customize, and troubleshoot the Xero integration on Deel.

To install integrations on Deel you must have the correct Org Admin permissions.

In this article

• Requirements
• Setting up the Xero integration
  • Troubleshooting
• Xero tracker categories 
• Custom Expense Categories 
• Enable multicurrency in Xero
• Plugins 
• Frequently asked questions (FAQs) 

Requirements

• Org Admin permissions in Deel
• An active Xero account with permission to authorise third-party apps
• (Recommended) Multi-currency enabled in your Xero organisation (see the dedicated section below)
• If you cannot see the Xero tile in Deel’s App Store, check with your Deel admin that the Xero integration is enabled for your environment.

How to set up the Xero integration

1. Open the App Store
   In the left sidebar, select Apps & Automation, then select App Store.
   If the Welcome to your Deel Apps & Integrations dialog appears, select I’ll do that later.
   
2. Locate the Xero tile
   On the Apps overview page, locate the Accounting section and select the Xero tile. If the tile is missing, see the troubleshooting note at the end of this section.
   
3. Open the Xero dashboard
   The Xero integration dashboard opens. Confirm that the page shows the Xero heading and the Dashboard tab.
   
4. Authenticate with Xero
   • On the Xero dashboard, click Connect Xero. If your credentials have expired, click Reconnect Xero instead.
   • Enter your Xero credentials and authorise access for Deel.
   • If you see “Your authentication is invalid”, click Reconnect Xero and log in again.
5. Select the entity to integrate
   After authentication, choose the Xero entity that corresponds to your Deel organisation and click Next.
6. Map a Xero account for your bills
   Pick the Xero account that should be used for each bill (or map per adjustment type) and click Next.
7. Customise the integration
   • Toggle Automatically sync all new contracts if you want future contracts linked by default.
   • Confirm whether multi-currency is enabled in Xero (recommended).
   • Decide whether invoices should sync in the invoice currency or the payment currency.
   • Click Complete Setup.
8. Verify the connection
   You will see a success banner and the integration status will show Connected. Confirm that Deel begins syncing invoices from the selected start date. We recommend creating a test invoice in Deel to confirm it syncs to Xero.

Troubleshooting

Xero tile not visible

If you cannot find the Xero in the App Store:

• Confirm you have Org Admin permissions.
• Check that the Xero integration is enabled for your Deel environment (some demo or sandbox tenants do not expose all integrations).
• If the Welcome to your Deel Apps & Integrations dialog is blocking the app tiles, select I’ll do that later and then continue to the Accounting section.
• If the tile is still missing, contact Deel Support or your Customer Success Manager.

Xero tracker categories

Xero tracker categories help customers categorise spending with greater granularity (beyond chart-of-accounts mapping).

• A maximum of two tracker categories can be configured per Xero organisation.
• Categories are created/edited directly in Xero Advanced → Tracking categories and pulled into Deel.
• Configuration happens after the integration is connected.

Setting up tracker categories in Deel

1. In the left sidebar, open Apps & Automation → App Store and select the Xero tile.
2. On the Xero dashboard, open Tracking categories from Quick actions.
3. In the Xero tracker categories card, select default options for each category (defaults apply to every contractor unless overridden).
4. To override on a contractor level, select the contractor and update their tracker category individually.

All future invoices from that contractor will now sync using the contractor-level mapping.

Custom Expense Categories

Custom expense categories let you route individual invoice lines to different Xero accounts or tracking classes.

1. Open Apps & Automation → App Store → Xero. On the Xero dashboard, select the available option to configure Custom expense category assignments.
2. Select the Custom expense category (created in Deel).
3. Choose the Xero Account / Tracking class you want that category to post to.
4. Click Create.

Enable multicurrency in Xero

Deel strongly recommends enabling multi-currency in Xero before you start syncing invoices – doing so prevents currency-code errors and allows Deel to push invoices in either the invoice or payment currency.

1. Log in to Xero.
2. Go to Settings → Currencies.
3. Click Add currency and choose each currency you will use.
4. Click Confirm.
5. Return to the Xero integration through Apps & Automation → App Store → Xero and refresh the integration page.

Plugins

Payment Sync Plugin

Map your saved payment methods in Deel to payment accounts in your accounting system. This allows invoice payments to sync automatically and be marked as paid once reconciled.

Requirements

• At least one invoice synced and ready for payment

Setup Steps

1. From the accounting system integration page, go to Plugins Settings
2. Click Payment Sync
3. Select a currency from the dropdown
4. Choose the default payment account for that currency (this account will be used for any payments not mapped to a specific method)
5. (Optional) Map individual saved payment methods to specific payment accounts by clicking Add mapping and selecting:
   • The payment method from Deel
   • The corresponding payment account in your accounting system
6. Repeat step 5 for each currency if operating in multiple currencies
7. Click Enable or Save to activate the plugin

Invoice payments will now sync to your accounting system and be marked as paid automatically.

Document Sync Plugin

Automatically sync invoice PDFs and expense attachment files from Deel to your accounting system for record-keeping and audit purposes.

Setup Steps

1. From the accounting system integration page, go to Plugin Settings
2. Click Document Sync
3. Toggle on both:
   • Sync invoice PDF
   • Sync invoice attachment files
4. Click Enable or Save

Invoice PDFs will sync directly to the invoice entry in your accounting system, typically in a "Files" or "Documents" tab.

Vendor Management Plugin

Link contractors, Deel entities, and EOR vendors from Deel to vendors/suppliers in your accounting system so that invoices sync to the correct place.

Requirements

• At least one vendor or contractor in Deel

Link Vendors

1. From the accounting system integration page, go to Plugins Settings
2. Click Vendor Management
3. Select a vendor-linking approach:
   • Email-based matching (recommended): Deel automatically matches Deel vendors to existing vendors in your accounting system by email address. If no match is found, a new vendor is created automatically.
4. Click View List to see all unlinked vendors/contractors
5. Select the vendors to link (or select all to bulk link)
6. Click Link to Vendors (Deel will match or create vendors automatically)
7. Click Apply

Assign Deel Entity Vendor

For invoices issued directly by Deel:

8. In the Vendor Management section, find Deel Vendor Management
9. Select the vendor to be used for invoices issued directly by Deel (billing invoices)
10. Click Apply

Contractors will appear as individual vendors in your accounting system; Deel invoices will sync to the designated Deel vendor.

Optional: Use a Single Vendor for all EOR Invoices

Simplify EOR accounting by having all EOR invoices sync through a single Deel vendor instead of creating a vendor per country.

1. From the accounting system integration page, go to Plugin Settings
2. Click Vendor Management (or navigate to the EOR module settings)
3. Find the option "Use a single vendor for EOR invoices"
4. Toggle it on
5. Select the Deel vendor to represent all EOR invoices (typically "Deel Inc" or a parent entity)
6. Click Apply

Bill (Invoice) Sync Plugin

Automatically sync invoices and bill payments from Deel to your accounting system so they're recorded in your books and matched to contractors/vendors.

Set Up Expense Account Mapping

1. From the accounting system integration page, go to Plugins Settings
2. Click Bill (Invoice) Sync
3. Set up expense account mapping:
   • Option 1 – Simple (One Account For All): Select a single default expense account from the dropdown to use for all invoices
   • Option 2 – Advanced: Click Start Mapping and map different accounting system expense accounts to match different Deel invoice types (e.g., time-based work, expenses, milestones)
4. Click Continue or Save

Enable Auto-Sync (Optional)

5. Look for "Auto invoice sync" or a similar option
6. Toggle on to automatically sync invoices each time workers are paid
7. Toggle off if you prefer to manually sync invoices

Sync Past Invoices (Optional)

7. Find the "Unsynced Invoices" section
8. Select the invoices you want to sync (select all, or individually)
9. Click Sync Invoices
10. Click Enable or Save to activate the plugin

Invoices will sync to your accounting system and be linked to the correct expense accounts and vendors.

Advanced Settings (Optional)

The following settings allow you to customize how invoices sync to your accounting system. These are optional but recommended for organizations with complex expense structures or multi-currency operations.

Common Advanced Options

• Summarize Invoices: Merge all line items from a single Deel invoice into one combined line item in your accounting system. This consolidates time-based work, expenses, and milestone payments into a single entry.
• Currency Settings: Specify the default currency for syncing invoices and payments (important in multi-currency environments).
• Invoice Date Selection: Choose whether to use the invoice issue date or payment date as the bill date in your accounting system.
• Approval Status: Set whether synced invoices appear as "Approved" or "Pending Approval" by default.

Frequently asked questions (FAQs)

Can past invoices be synchronised?

Yes. Choose the date from which to sync retroactively when turning the integration on.

Will invoices automatically be synchronised?

Yes. Deel automatically syncs all invoices from the date of integration onward.

How can Xero be disconnected?

Open Apps & Automation in the left sidebar, select App Store, and open the Xero tile. On the Xero Dashboard, select Delete integration, then select Yes, disconnect in the confirmation modal. If Your authentication is invalid appears, Delete integration is available directly in that alert.

What if the person who set the integration up leaves?

Add multiple email addresses to receive integration notifications so there is no single point of failure.

Are notifications sent if there is an issue with the integration?

Yes. In the Xero integration, use Plugin settings to add recipients who will be emailed if sync errors occur.