Integrating your Xero account with Moxie will enable automatic synchronization of Clients, Invoices, and Payments. Additionally, if you have complex sales tax scenarios, Moxie will integrate your Xero Sales Tax rules directly into the invoicing flow to make compliance a breeze.
To begin, we first need to create two accounts within Xero that Moxie will use for transactions processing.
The first account we need to create is a "Sales" account. This is where Moxie line items will get booked to when they are created. Choose "Sales" in the account type, enter a code that is unique in your Xero chart of accounts, the title and description should reference Moxie so you or your accountant can clearly see where these transactions are originating. Set the "Tax" on this sales account to 0% or Tax Exempt. Even if you charge tax, it is important that this account does not have tax enabled.
The second account we are going to create is a clearing account. You can read more about how to use a Xero clearing account here. This is the account where payments from Moxie will get booked. When you or your accountant match the bulk deposit into your bank account, you will match against this clearing account. If you are processing via Stripe or PayPal, pay special attention to the section titled "Process Merchant Fees" in the Xero help article.
To create the account choose "Current Asset" as the account type. Create a unique code and give a name and description that will make sense to you and your accountant. Set this account to "Tax Exempt". IMPORTANT - You must have the "Enable payments to this account" option checked.
Once your two accounts are created with Xero, head over to the Connected Apps section of Moxie. Click your workspace settings > connected apps > accounting. Click "Connect Xero" and proceed with authenticating with Xero and granting access to Moxie.
Once this is complete, you will map the newly created accounts within the Moxie / Xero configuration.
Now that Moxie and Xero are connected, Clients, Invoices, and Payments will be synchronized to Xero.
When an invoice or payment are successfully synchronized with Xero, you will see a small Xero icon appear in your invoice or payment list.
IMPORTANT: Always mark your invoices paid within Moxie - NOT within Xero directly - even if you receive the money outside of Moxie. This will allow both Xero and Moxie to accurately reflect the payment event. You must mark your invoice paid within Moxie prior to matching the transactions from your bank account. This will allow you to match against the clearing account and not directly to the outstanding invoice.