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Overview

Connect Xero when your finance workflow needs InvestSync to stay aligned with accounting records. The Xero area supports:
  • Bank balances as cash investments.
  • Chart of accounts sync.
  • Mapping Xero accounts to investment categories or reporting areas.
  • Invoice sync from investment transactions.

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Before you start

Confirm which InvestSync entity owns each Xero organisation. Create the entities you need in Settings → Investments → Entities before connecting their ledgers. Each entity can have one Xero ledger. An InvestSync organisation can connect several Xero ledgers when it manages several entities.

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Basic and advanced use

  • Basic use: connect Xero, review bank account balances, and keep the chart of accounts current.
  • Advanced use: map accounts for reporting and use invoice sync after your team has checked the results.

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Connect Xero

  1. Go to Settings → Integrations.
  2. Choose Xero.
  3. Sign in to Xero and approve the connection.
  4. Choose the InvestSync entity that owns the ledger.
  5. Select the matching Xero organisation.
  6. Review the new ledger on the Xero page in InvestSync.
Repeat these steps to connect another entity. A Xero organisation that is already connected cannot be assigned to a second entity. Existing Xero connections created before entity-based ledgers show Entity assignment required. Choose the correct entity once to unlock bank feeds, account mapping, and invoice settings for that ledger.

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Bank feeds

Use Bank feeds when you want Xero bank balances reflected as cash investments. Go to Settings → Integrations → Xero → Bank accounts to choose which accounts are active. Before turning an account on, review:
  • Reporting entity — fixed to the entity assigned to the selected Xero ledger. Bank accounts from one ledger cannot be moved into another entity.
  • Investment category — where the cash investment should appear in portfolio reports. If your organisation does not have a category with Cash or Bank in its name, InvestSync suggests creating a Cash category. You can still choose another existing category.
Each connected account is saved as a special bank investment linked to those reporting choices. This keeps the bank balance visible in the investment list without treating the bank account itself as a person, trust, or company. This is useful for:
  • Cash visibility across the portfolio.
  • Multi-currency bank balances.
  • Daily balance updates for selected accounts.
  • Bank interest income that should appear in InvestSync income reporting.
When you open one of these cash records from Investments, InvestSync shows a bank account view. It highlights the current cash balance, balance history, Xero sync status, account currency, and related activity. This keeps bank accounts separate from normal investment holdings, where performance, market value, and gain or loss are the main focus. When a selected bank account has interest income in Xero, InvestSync creates an interest income item against the matching cash investment. These income items sit alongside the bank balance; they do not set or overwrite the cash balance, which continues to come from the Xero bank balance sync. Only interest from the bank itself is imported, such as ANZ interest for an ANZ account. If the Xero bank account has a clear leading account label, such as CIP - Collins Farms Ltd - NZ, InvestSync can also match interest rows described as CIP or CIP - March. Interest from other borrowers, related parties, or loan arrangements that happens to pass through the bank account is left out. If resident withholding tax is recorded with the bank interest, or as a nearby separate bank transaction, InvestSync records it with the income item where it can be matched. Open the bank account record to review the imported income items, including gross interest, tax withheld, and net cash received. Choose Open in Xero on an imported income item to view the source Xero transaction. Choose Import from Xero to review matching Xero transactions for a date range, open the source transaction in Xero if needed, and select the rows to import. If no matching income rows are found, choose Show all transactions so I can choose to review the fetched Xero transactions and select the source transaction yourself. You can also open a Xero transaction’s lines and select the specific interest and RWT lines to import. When selected lines cover more than one month, InvestSync creates a separate income item for each month it can identify. If an imported income item needs correcting, use Edit on that row to update the income date, gross interest, and tax amount. Use Delete to remove one imported income item, or select several rows and choose Delete selected to remove them together. Manually corrected or deleted income items are kept in InvestSync and are not replaced by later bank income syncs. Other bank transactions, such as transfers, expenses, and ordinary deposits, are not brought in by this bank income sync. If a bank feed is paused, its investment, balance history, and reporting links remain in InvestSync. Turning the feed back on reuses that same bank investment and lets you confirm or change its entity and category before updates resume. If selected bank accounts are syncing, the Dashboard can also show a bank balances panel. This helps teams check available cash without opening each bank account record.

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Chart of accounts

Use Chart of accounts to keep InvestSync aligned with your accounting structure. From Settings → Integrations → Xero you can:
  • Select the entity ledger you want to work with.
  • See how many accounts have been synced.
  • Run Sync when accounts have changed in Xero.
  • Turn chart of accounts auto-sync on or off.
  • Open Review mapping to match accounts to investment reporting needs.

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Account mapping

Use account mapping to connect an entity’s investment records with accounts from that entity’s Xero ledger. Investments and accounts from other entities are not shown in the mapping workspace. Typical mapping work includes:
  • Finding suggested primary account matches from investment names, tickers, account codes, and Xero account classes.
  • Reviewing the confidence and reason shown for each suggestion before saving it.
  • Applying high-confidence suggestions together, then checking lower-confidence suggestions one by one.
  • Choosing the correct account where a suggestion is not right.
  • Setting default accounts for tax, capital gains, and unrealised gains.
  • Revisiting mappings when the portfolio or chart of accounts changes.
Suggested mappings do not replace existing saved mappings. If InvestSync is not confident enough, the investment is left for manual review.

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Invoice sync

Use Invoice sync when transactions should create Xero invoices or bills. Select an entity ledger, then go to Invoice sync to choose its automation mode. A transaction is sent only to the Xero ledger assigned to the investment’s owning entity. Common examples:
  • Buy transactions can create payable bills.
  • Sell, write-off, and income transactions can create receivable invoices.
  • Income can include a tax deduction line where relevant.

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Disconnecting Xero

Go to Settings → Integrations → Xero, select the entity ledger, and choose Disconnect. Disconnecting that ledger stops its future syncing without affecting the other connected entities. Existing InvestSync records remain available.

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Good practice

  • Sync the chart of accounts after changing accounts in Xero.
  • Review bank account selections after opening or closing accounts.
  • Check mappings before using invoice sync.
  • Start invoice sync manually until your team is comfortable with the results.