Xero accounting is a great platform for businesses, but to make the most of the software you’ll want to consider several integrations with your other platforms. This is especially true for ecommerce businesses.

We’ve put together a few things you should consider when looking for integrations to improve efficiency in your business.


xero accounting software

Xero is a great platform for your accounting. It’s cost-effective, easy, and widely used. If you own and operate an ecommerce business, you would be hard-pressed to find a better-suited accounting platform.

But the entirety of your business doesn’t happen in Xero, as there are plenty of other sales and operational functions that occur outside of this software.


external functions

There are functions that Xero has either limited or no capability to perform. These can include functions such as:

  • inventory management
  • point of sale
  • collections
  • reporting
  • transferring sales, cost and other data into Xero

There are also situations where data needs to flow out of Xero into other Apps; if you want enhanced reporting, or to consolidate the accounting files of two entities in the same group, for example.

There are a number of apps that can fulfil your need for just about every function you can imagine, and these functions all produce or need data to flow to or from Xero.


how the data flows

There are three main ways in which this data flow happens, or doesn’t.

  1. It doesn’t happen…
    In this instance, the Xero ledger is effectively a cash ledger. It works, but information and insights that can be drawn from the financial statements are limited and ultimately unhelpful.
  2. It is entered manually…
    Either through journals [manually keying data such as invoices], or importing spreadsheets. This gets the data into Xero so we’re getting a lot more value out of our accounting outputs, but it takes time and effort.
    Manually keying data also carries an inherent risk of inaccuracies, whenever data is transferred manually, there is always a risk of human error, which results in inaccurate data entry.
    Critically, someone has to actually remember to do this process in its entirety each and every reporting period.
  3. Integrations…
    An automatic connection between Xero and the other Apps you are using. This is by far the best method as it provides a timely and accurate transfer of data between systems.
    However, to be done in a way that works properly + actually results in saved time, there needs to be some thought into the way we do this. There should be a clear process and strategy around the way in which data flows both to and from Xero.


setting up integrations

System selection itself is an important part of this equation, but we’ll focus on the integrations specifically in this blog.

There are a number of things to consider:

  • there should be one source of truth for all data, where is this? e.g. for sales is it Xero or Shopify?
  • is Xero the central piece of systems infrastructure? [it doesn’t need to be]
  • what are the triggers and what type of data is sent to and from Xero and what format is it in?
  • is a direct connection with Xero the ideal situation, or is an intermediary [e.g. A2X between Xero and Shopify] going to provide a better result?
  • which directions can we write data, and in which directions is it read-only?

All this and much more, depending on the type of systems and integrations being implemented need to be considered. And while it is possible to simply hit the connect button and build a working integration, this approach most likely won’t cater for all scenarios or be able to scale with your business in a trouble-free way.


we’re here to help!

The businessDEPOT Ecommerce + Digital teams work on these solutions and strategies daily and would love to help you with yours!

If you would like help improving the efficiency of your tech stack or determining which automation and integrations would work best for your business, get in touch with our team at oneplace@businessdepot.com.au or give us a buzz on 1300BDEPOT.



general advice disclaimer

The information provided on this website is a brief overview and does not constitute any type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.