Taking debit or credit card payments used to be invaluable for small businesses due to high setup costs and lack of mobility. But now, as more and more people are trying to avoid carrying cash and governments are pushing towards a cashless economy, small businesses must accept these cashless payment methods to continue growing their business.
iZettle is the worldโs first mini chip card reader and software for mobile devices that empowers small businesses to accept and track cashless payments and business sales through an integrated product library and insightful reporting anywhere, anytime. iZettle, now rebranded as Zettle by Paypal, was introduced in 2010 in Sweden. Presently, iZettle is catering specifically to small businesses in Europe and Latin America through its free payment app (iZettle Go) and cost-effective iZettle card reader tool. It claims to have helped its customers grow their small businesses by more than 3 times each year.
iZettle Xero integration is a perfect match for your retail business. Through this easy and smooth integration, a business can enjoy the luxury of automatically recording its sales and payment data in its Xero account of choice. The integration is safe and cost-effective, and it also helps small businesses to digitalise their payment method.
How Does Xero iZettle Integration Work?
- First of all, you integrate your iZettle account with your Xero account.
- iZettle will export all of your data to your Xero account.
- Once the integration is done, the iZettle Go app will receive your sale payments through the iZettle card reader connected to your tablet/phone’s Bluetooth.
- You can easily print your receipts through the portable iZettle receipt printer for further records.
- Lastly, iZettle Go will export your payments to your Xero account daily at 10 pm.
How Does iZettleย Integrate With Xero?
iZettle lets you import your sales and payment data daily into your Xero account. It is easy to set up, and once you have connected your account, all sales in iZettle will automatically be imported into the bookkeeping accounts of your selection in Xero, a small business accounting software.
To set up iZettle Xero integration, you need to have an iZettle business account and a Xero account.
- Sign in to myiZettle.com
- In the menu section, select “settings” and then “application”.
- Now click on the “connect” button to connect with Xeroโฆ
- And enter your Xero account details to log in.
- Then choose the account you want to connect and authorise.
- Now that your accounts are connected, you are ready to set up the bookkeeping accounts where you want your sales data to be imported.The card payment data from iZettle should preferably go into a separate account in Xero.
- If you have not already created your Xero account, you can do it from here. The account will automatically be added to Xero during the next import.
- For cash payments, select the “iZettle cash payments” account.
- For total sales, choose the account in Xero, where you collect all the sales data.
- For refunds, use the same account title as you used for your total iZettle sales.
- If you want to record your iZettle fees as a separate expense, then create a new account for it.
- Only the global sales data will go into Xero, and not any reports on the specific products sold. Before selecting save, a critical step is to set the correct date from where you want to sync your iZettle data into Xero. Remember, this can only be set once.
Be aware that if you have previously booked your iZettle sales in Xero, it could get booked twice. Make sure you save your settings.
From now on, all your iZettle sales will be imported to Xero on the following day at 10 pm. In order for Xero to automatically reconcile your iZettle bookkeeping accounts for client payments, you need to do an initial find and match for the iZettle deposits.ย
The first time you get a deposit from your iZettle to your bank account, please create a match to reconcile the iZettle card payment account with your bank payment account. - Login to your Xero account.
- Then select reconcile.
- In the card payment deposits, select the bookkeeping account you have chosen for card payments.
- Now press “OK”.
- Do the same thing for cash payments, but unlike card deposits, you will need to manually reconcile the cash deposits from the future too.
- Now, you have successfully integrated your iZettle account with your Xero account.
Benefits of iZettle Xero Integration for Your Small Business
Xero iZettle integration has several benefits for small businesses that helps them stay ahead of the competition. Some of the key benefits are discussed below.
Do Business From Anywhere
Xero and iZettle are online applications, which means they can be used from anywhere in the world, depending on the internet’s availability. This allows small businesses and small merchants to digitise their businesses by just entering inventory in the app. You only need to have access to the internet services on your tablet/phone, and you will be able to accept payments using the card reader on the go.
Cash Flow Management
Cash flow is a serious problem for small businesses, with 78% of UK SMEs facing at least one month delay in their due payments. One of the reasons for the delay in payments is the non-availability of the payment method required. The variation of payment options offered by iZettle gives small businesses flexibility and helps them greatly in cash flow management.
Faster Card Transactions. Quick Deposits
iZettle Xero integration also helps speed up the process of cash collection and deposit in your bank account. The iZettle card reader is considered one of the fastest mobile card machines available. The payments are swiftly collected through the card reader and are recorded in the iZettle Go app. From there, the cash moves to your Xero account and then gets deposited into your bank account within 1-2 business days.
Cost-Effective
iZettle is an affordable and cost-effective option for small businesses. The iZettle Go app is free for all, and you are only required to pay 1.75% for a card transaction and 2.5% for an invoice or payment link transaction. iZettle also accepts PayPal QR code transactions, which are charged at 1% per transaction.
Safe Payments
The safety of digital data is one of the biggest priorities and concerns of businesses at present. Businesses are investing hugely in the security of their data through different methods. Unfortunately, small businesses can not always afford these security options and end up facing issues. iZettle has a transaction protection feature that encrypts the payment data, and its design is tamper-proof. Therefore businesses that use iZettle are made sure of the complete security of their transactions.
Frequently Asked Questions (FAQs)
Can we connect multiple iZettle accounts to Xero?
No. You can not connect multiple iZettle accounts to a Xero account. Only one iZettle account is allowed to be connected to a Xero account.
When is data imported from iZettle to Xero account?
As soon as the integration is set up, any date can be selected for the data import to start. It is suggested to choose the date of your current fiscal year in order not to tamper with the already closed books of the previous year. Once the integration is set up, the iZettle data will be visible in Xero on the next day. Remember, iZettle will automatically import the transaction data to your Xero account at 00:00 GMT once every day.
Can we change the start date after the first data import?
No, we can not change the start date after setting up the integration and the 1st successful import of data between Xero and iZettle accounts. The reason behind this is the duplication effect on the data for the overlapping days.
Which data is shared between Xero and iZettle?
When you connect your iZettle account to your Xero account, it requires you to authorise data sharing between Xero and iZettle. After you allow, iZettle will be able to read your Xero account details, including your company name, account details, clients, taxes, bills, suppliers, payments, invoices, bank statements and balance sheets. Xero will also be able to read your financial details, including iZettle transactions.
Conclusion
iZettle offers small businesses a reliable and easy-to-use cashless payment solution through its card terminal and point-of-sale app. With one of the lowest transaction rates, iZettle is the most economical cashless payment solution for startups and small businesses. The iZettle integration with Xero is also easy to set up and automatically imports the transactions to Xero. However, some technical issues can arise with the integration. In such a situation, it is strongly recommended to contact expert Xero accountants.