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izettle xero integration
16 Jul

iZettle Xero integration: A Step by Step Guide


By:   Jinesh Jain Accounting Software / Must Read Comments:   No Comments

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 world’s first mini chip card reader and software for mobile devices that empowers small businesses to accept and track cashless payments, 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 payments 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 iZettle 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.

  1. Sign in to myiZettle.com

    Sign in to myiZettle.com

  2. In the menu section, select “settings” and then “application”.

    Select setting and then application

  3. Now click on the “connect” button to connect with Xero…

    Connect with Xero

  4. And enter your Xero account details to log in.

    Log in to Xero

  5. Then choose the account you want to connect and authorise.

    Authorise account

  6. 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.


    Ready to set up xero account

  7. 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.

    create Xero Account

  8. For cash payments, select the “iZettle cash payments” account.

    create Xero Account

  9. For total sales, choose the account in Xero, where you collect all the sales data.

    total sales, choose the account in Xero

  10. For refunds, use the same account title as you used for your total iZettle sales.

    For refunds, use the same account

  11. If you want to record your iZettle fees as a separate expense, then create a new account for it.

    record your iZettle fees as a separate expense


  12. 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. 

    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.


    set the correct date

  13. Login to your Xero account.

    Login to Xero account.

  14. Then select reconcile.

    select reconcile.

  15. In the card payment deposits, select the bookkeeping account you have chosen for card payments.

    select the bookkeeping account

  16. Now press “OK”.

    Press OK

  17. Do the same thing for cash payments, but unlike card deposits, you will need to manually reconcile the cash deposits from the future too.

    cash payments

  18. Now you have successfully integrated your iZettle account with your Xero account.

    cash payments

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

Safety of the 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.

Expert Xero Accountants

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.

Jinesh Jain

Jinesh Jain

Senior Business Accountant

+44 (0)207 117 2639

info@chacc.co.uk

chacc.co.uk

Author Bio


Jinesh is a Senior Business Accountant, with a masters in Finance from Westminster University, and specializes in tax and accounting for small to medium businesses with a turnover less than £ 3 Million.

He specialises in helping creative businesses understand and manage their accounting and tax needs and obligations.

As accounting ecosystems evolve, their potential to add value also grows. This has increased the focus on digital solutions to tackle complex business problems. Jinesh helps businesses see the opportunity in this and helps businesses become more efficient and increase performance, using the right solutions.

Some of the key things he focuses on are:

  • Helping businesses gain insights from their business data
  • Providing complex tax and accounting solutions
  • Helping businesses prepare for complex industry developments and changes

You Might Also Want to Read:

How GoCardless For Xero Is Improving Cash Flow For Small Businesses
Best Cloud Accounting Software For Small Businesses (Updated For 2021)
How Cloud Accounting Apps Enhance Business Performance?

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