Connecting Xero to your Anchor account lets you sync invoices and payments directly into Xero, making month-end reconciliation faster and more accurate.

When you issue an invoice in Anchor, a corresponding invoice is automatically created in Xero, using the same invoice number and total amount.

Once a client pays the invoice, Anchor records the payment in Xero and links it to the correct invoice. This payment is recorded in the Clearing Account you selected during setup.

When funds reach your bank account, Anchor records a Receive Money transaction in Xero. This transaction moves the total from your clearing account into your bank account and includes any related fees.

Anchor's fees and credit card processing fees (if you cover them) are automatically included in the payout entry as part of the same receive money transaction. These amounts are posted to your Expense Account in Xero.

When a refund is issued, Anchor creates a credit note in Xero, marks it as a cash refund, and links it to the original invoice and clearing account. The next payout in Anchor reflects the refunded amount. Read more about refunding client payments.

Follow these three simple steps to connect your Xero account to Anchor:

Go to Integrations > Xero in your Anchor account and click Connect. This will open a secure login window hosted by Xero.

Log in with your Xero credentials, then choose the Xero organization you’d like to connect. Once authorized, you’ll be redirected back to Anchor.

This step ensures Anchor can securely sync data with the correct Xero organization.

Click Set up connection in Anchor to configure how your data will sync.

This opens the Connection Settings panel, where you’ll map your accounts, services, and contacts between Anchor and Xero.

Proper mapping ensures smooth syncing and accurate financial records across both platforms.

Next up:
​Setting up Xero
Learn how to complete the setup by mapping accounts, contacts, and services.