WooCommerce Xero Integration: Sync Your WordPress Store Accounting

Connecting WooCommerce with Xero streamlines accounting for WordPress-based stores. This guide compares integration options and walks through proper setup.

WooCommerce

integrates with

Xero

Accounting 5

Why Integrate WooCommerce with Xero?

Related: WooCommerce Xero Sync: What Data Transfers (Orders, Customers, Products) (2025), WooCommerce Xero Integration Pricing: Cost, Plans & ROI (2025), internal linking tool.

Running a WooCommerce store without accounting automation means:

After integration:

• Orders automatically create Xero invoices
• Payments mark invoices as paid
• Bank reconciliation matches in minutes
• Sales tax calculated and recorded correctly

Integration Options Compared

Related: Shopify Xero Integration: Automate Your Ecommerce Accounting (2025), Shopify QuickBooks Integration: Complete Setup Guide (2025), WooCommerce Xero Integration Troubleshooting: Common Issues & Fixes (2025).

Option 1: WooCommerce Xero Extension (Official)

The plugin from WooCommerce.com, developed by Jetpack.

Best for: Simple setups, budget-conscious stores

Option 2: Amaka

Premium integration with advanced features.

Best for: Multi-currency stores, complex requirements

Option 3: MyWorks

Middle-ground option with good feature set.

Best for: Stores needing two-way sync

Option 4: Zapier/Make Integration

For custom or simple workflows.

Trigger: New WooCommerce Order
→ Create Xero Invoice
→ Add payment (if paid)
→ Attach to customer

Best for: Custom logic, budget setups

Feature Comparison Matrix

Related: QuickBooks integration, the Product Reviews connector, Comparison.

Step-by-Step Setup: WooCommerce Xero Extension

Prerequisites

• WooCommerce store with orders
• Xero account with chart of accounts
• WordPress admin access

Step 1: Install the Extension

1. Purchase from WooCommerce.com ($129/year)
2. Download the plugin zip file
3. In WordPress, go to Plugins > Add New > Upload
4. Upload and activate the plugin

Step 2: Connect to Xero

1. Go to WooCommerce > Settings > Integration > Xero
2. Click Connect to Xero
3. Authorize access in Xero popup
4. Select your Xero organization

Step 3: Configure Account Mapping

Map WooCommerce data to Xero accounts:

Step 4: Configure Tax Settings

Match WooCommerce tax rates to Xero:

1. In Xero, note your tax rate codes (e.g., “GST on Sales”)
2. In plugin settings, map each WooCommerce tax rate
3. For tax-inclusive stores, enable “Tax Inclusive” option

Step 5: Set Payment Mapping

Configure payment gateways:

Step 6: Test and Verify

1. Create a test order in WooCommerce
2. Check Xero for new invoice
3. Verify amounts, tax, and account mapping
4. Complete payment and verify it syncs

Advanced Configuration

Multi-Currency Setup

For international stores:

1. Enable multi-currency in Xero (paid feature)
2. Add currencies you accept
3. In plugin, enable multi-currency mode
4. Configure exchange rate handling:
   • Use Xero’s rates (recommended)
   • Or lock rate at order time

Handling Different Order Statuses

Configure when invoices are created:

Payment Gateway Reconciliation

For accurate bank reconciliation, create clearing accounts:

Customer pays $100 via Stripe
├── WooCommerce: Order marked paid
├── Xero: Invoice marked paid from "Stripe Clearing"
├── Stripe: Deposits $97 to bank (after fees)
└── Xero: Transfer from Stripe Clearing to Bank, record $3 fee

Handling Common Scenarios

Scenario 1: Subscription Orders

For WooCommerce Subscriptions:

Initial order → Create invoice
Renewal order → Create new invoice
Payment collected → Mark invoice paid
Subscription cancelled → No invoice for future periods

Note: Ensure subscription plugin is compatible with Xero extension.

Scenario 2: Partial Refunds

Original order: $100
├── Invoice created: $100
├── Partial refund: $30
├── Credit note created: $30
└── Net in Xero: $70

Scenario 3: B2B Customers on Credit Terms

For wholesale customers who pay later:

1. Create customer in Xero with payment terms
2. Map WooCommerce customer to Xero contact
3. Invoice created on order (not payment)
4. Manually mark paid when payment received

Scenario 4: Split Payments

When customer pays with multiple methods:

Order total: $150
├── Gift card: $50 → Gift Card Liability (reduce)
├── Credit card: $100 → Stripe Clearing
└── Invoice: $150 (two payment lines)

Tax Configuration Deep Dive

Standard Tax Setup

For straightforward single-rate tax:

1. Create tax rate in WooCommerce (e.g., 10% GST)
2. Create matching rate in Xero
3. Map WooCommerce rate to Xero rate in plugin

Multi-Jurisdiction Tax (US Stores)

For US stores with sales tax nexus:

WooCommerce Tax Rates:
├── California 7.25%  → Xero: CA Sales Tax
├── New York 8.0%     → Xero: NY Sales Tax
├── Texas 6.25%       → Xero: TX Sales Tax
└── No Tax states     → Xero: Tax Exempt

Recommendation: Use TaxJar or Avalara integration for WooCommerce tax calculation, then sync totals to Xero.

Tax-Inclusive vs. Tax-Exclusive

Ensure settings match between systems:

Reconciliation Best Practices

Daily Checklist (5 minutes)

• Check plugin dashboard for sync errors
• Review any failed invoices
• Match yesterday’s Xero invoices to WooCommerce orders

Weekly Checklist (30 minutes)

• Compare WooCommerce revenue to Xero income
• Review refunds processed correctly
• Check payment gateway clearing accounts
• Investigate discrepancies > $50

Monthly Close Process

Week 1 of new month:
1. Ensure all previous month orders synced
2. Reconcile bank accounts in Xero
3. Review clearing account balances (should be ~$0)
4. Run WooCommerce vs Xero comparison report
5. Post any adjusting entries
6. Mark month as closed

Troubleshooting

Issue: Invoices Not Creating

Causes:

• Connection expired
• Order status not triggering sync
• API rate limiting

Solutions:

1. Reconnect to Xero in plugin settings
2. Check order status mapping
3. Review error logs in WooCommerce > Status > Logs

Issue: Tax Amounts Don’t Match

Causes:

• Rounding differences
• Tax rate mismatch
• Tax-inclusive setting difference

Solutions:

1. Verify tax rates match exactly
2. Check tax-inclusive settings match
3. Review rounding rules in both systems

Issue: Duplicate Invoices

Causes:

• Manual and automatic sync both running
• Plugin reinstalled without cleanup

Solutions:

1. Disable manual invoice creation
2. Check for duplicate order numbers
3. Set clear start date for sync

Issue: Currency Conversion Errors

Causes:

• Multi-currency not enabled
• Exchange rate timing

Solutions:

1. Enable multi-currency in Xero
2. Set consistent exchange rate source
3. Review currency settings in plugin

Cost Analysis

ROI Example:

• Time saved: 15 hours/month × $25/hour = $375/month
• Plugin cost: $129/year = $10.75/month
• Net savings: $364.25/month

2025 Snapshot

Quick benchmarks for the Xero workflow. Use these as planning ranges, then validate against your own data.

Next Steps

After setting up WooCommerce-Xero integration:

1. Configure automatic bank feeds in Xero for faster reconciliation
2. Set up expense tracking for complete financial picture
3. Create financial reports for business insights
4. Train team members on new workflow

# List the 5 most recent orders (REST)
curl -u ck_your_key:cs_your_secret \
  "https://example.com/wp-json/wc/v3/orders?per_page=5&orderby=date&order=desc"

Sources

• WooCommerce.com: Xero
• Shopify: Ecommerce accounting guide
• Shopify: Online payments guide

Using Shopify instead? See our Shopify Xero integration guide. Need QuickBooks? Check WooCommerce QuickBooks integration.