Once you've connected Xero to your Anchor account and clicked Set up connection, you'll unlock the Connection Settings.
This is where you align your accounting setup, so invoices, payments, and expenses flow cleanly into Xero.
How to Set Up Xero in Anchor
Follow these three simple steps to complete your setup:
1. Map your accounts
This tells Anchor where to record transactions in Xero. Proper account mapping ensures everything is recorded correctly in your books.
Click Choose Accounts, then assign the following:
Bank Account – Where client payments are deposited.
Select an account in Xero with the type Bank.
Expense Account – Where Anchor fees (including processing fees, if applicable) are recorded.
Choose an account with the type Expense.
Clearing Account – A holding account for payments before they hit your bank.
Select a Current Asset account and ensure “Enable payments to this account” is turned on in Xero.
Anchor will also create a vendor contact in Xero called Anchor vendor to track fee-related expenses.
2. Map Your Contacts
To sync invoices, Anchor needs to know how to match your clients with your Xero contacts.
Anchor checks for email matches between contacts in both systems. If a unique match is found, it’s automatically synced.
To confirm or adjust:
Click Map Contacts
Contacts with email matches will show as Synced
For unmatched contacts, search and select the correct Xero contact from the dropdown
3. Map Your Services
Each billable service in Anchor should be matched to a corresponding item in Xero.
Only non-inventory items of type Sell with a mapped Sales Account in Xero will appear in the list. If you don’t see a service, double-check its configuration in Xero.
To map:
Click Map Services
For each Anchor service, choose the Xero item it aligns with
Once mapped, the status will show as Mapped
You can map multiple Anchor services to a single Xero item if needed.
Disconnecting Xero
If you disconnect the integration, syncing will stop for new data, but nothing will be lost. All previously synced invoices, payments, and payouts remain intact in both Anchor and Xero.
Next up:
How Anchor Syncs with Xero
Understand how invoices, payments, payouts, and fees flow between Anchor and Xero.