Xero integration

Agency invoicing that syncs to Xero

Handl builds the invoice from your milestones, hours and retainers. Xero stays your books. Invoices and payments sync both ways, so nothing gets typed twice.

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What syncs

What syncs between Handl and Xero

Three things, and that's the whole list. Each one is switched on in the Xero settings inside Handl, and each one does exactly what it says.

  • Invoices go to Xero

    Handl creates the invoice in Xero as a sales invoice with the same number, dates, currency, line items, quantities, rates, discounts and tax. Change it in Handl later and the same Xero invoice updates, no duplicate.

    When

    You pick the timing: when the invoice is sent, when payment is received, or only when you hit Sync. New invoices land as Authorised, or as Draft if you'd rather review them in Xero first.

  • Payments go to Xero

    When a Handl invoice is paid in full, Handl records the payment against that invoice in Xero, in the bank account you chose.

    When

    Right after the invoice is marked paid. Payment sync is off until you switch it on and pick a bank account, so Xero never gets a payment you didn't set up.

  • Payments in Xero come back to Handl

    If your bookkeeper records a payment against the invoice in Xero, Handl picks it up and records it on the Handl invoice. The invoice shows as paid and the reminders stop. A part-payment is recorded as a part-payment.

    When

    Handl checks Xero every hour for payments on invoices that are still open. This runs when payment sync is on.

Division of labour

What stays where

Handl does

  • Scope and milestones
  • Time and retainers
  • Drafting the invoice
  • Payment reminders
  • The client portal

Xero does

  • Chart of accounts
  • Bank feeds
  • BAS and tax returns
  • Reporting
  • Payroll

Handl isn't your accounting system and doesn't pretend to be.

Setup

How to connect Handl to Xero

It takes a couple of minutes. You need to be an owner, admin or project manager in Handl, and someone who can authorise apps on your Xero organisation.

Have these ready in Xero

  • A revenue account in your chart of accounts. Handl posts invoice lines to the first one it finds.
  • If you charge GST or other tax: an active tax rate in Xero that can be used on revenue and matches the rate on your Handl invoices (10% GST on Income, for example).
  • The bank account you want payments recorded against.

  1. Step 1: Open Integrations in Handl

    In Handl go to Settings, then Automation, then Integrations. The Accounting card has Xero and QuickBooks on it.

  2. Step 2: Click Connect on the Xero card

    A Xero window opens. If you already have QuickBooks connected, disconnect it first. Handl connects to one accounting system at a time.

  3. Step 3: Sign in to Xero and allow access

    Choose the Xero organisation you want to connect and click Allow access. Handl asks to read and write invoices and contacts, record payments, read your accounts and tax rates, and stay connected until you disconnect it.

    When the window closes, the Xero card in Handl shows Connected.

  4. Step 4: Choose when invoices sync

    On the Xero card, click Settings. Under Sync invoices to Xero pick Manual, When sent, or When payment received. Under Xero invoice status pick Authorised, or Draft if you want to review each invoice in Xero before it hits your books.

  5. Step 5: Turn on payment sync and pick the bank account

    Switch on Sync payments to Xero, then choose the bank account payments should be recorded against. Handl only offers your active bank accounts.

    The picker shows each account's currency and account number on a second line, and marks the one that receives your Handl payments. That's there because Stripe clearing accounts tend to be near-identical (Stripe AUD, Stripe AUD 1, Stripe AUD 2), and Xero rejects a payment if the account's currency doesn't match the invoice's. Pick the account your Stripe feed lands in, in the same currency as your invoices.

  6. Step 6: Match your clients to Xero contacts

    The first time an invoice for a client syncs, Handl looks for a Xero contact with exactly the same name. No exact match? The invoice shows Needs mapping. Click it, then Choose customer to link an existing contact, or Create the client in Xero from the same box.

    Handl remembers the match for next time.

  7. Step 7: Catch up older paid invoices (optional)

    Turning on payment sync only covers payments from now on. For invoices that were already paid, use Check for unsynced payments in the same settings. It shows you what it would send and waits for your OK.

That's it. If the connection ever drops, the Xero card shows a Reconnect button. Use that instead of disconnecting.

Time in, books out

Works alongside your time tracker

Hours go into Handl from the tracker your team already uses, Handl builds the invoice, and Xero gets the result. They're all listed on the integrations page.

  • Harvest

    Tracked hours sync into Handl and land on the next hourly invoice, which then syncs to Xero.

  • Toggl

    Toggl entries flow into Handl, onto the invoice, and across to Xero without an export in between.

  • Clockify

    Clockify hours come into Handl and ride the same invoice path to Xero.

  • Hubstaff

    Hubstaff time lands in Handl first, then goes to Xero on the invoice.

See all integrations

Frequently asked questions

Does Handl replace Xero?
No. Xero stays your books: chart of accounts, bank feeds, BAS, reporting, payroll. Handl does the project side, building the invoice from milestones, hours and retainers, and sends the result across so you're not typing it twice.
What do I need in Xero before I connect?
A revenue account, because Handl posts invoice lines to the first one it finds. If you charge GST or another tax, an active tax rate that can be used on revenue and matches the rate on your Handl invoices. And the bank account you want payments recorded against. If a revenue account is missing, the sync stops with a message telling you to add one.
Do invoices arrive as drafts?
By default they arrive as Authorised, so they're in your books straight away. If you'd rather review each one first, set Xero invoice status to Draft in the Xero settings inside Handl. One thing to know: Xero only accepts payments against approved invoices, so with Draft, payments wait until you approve the invoice in Xero.
What happens if I edit the invoice in Xero?
That's yours to do and Handl doesn't read invoice edits back. If you then change the invoice in Handl, Handl updates the same Xero invoice to match instead of creating a second one, and it leaves the invoice's status alone, so an invoice your bookkeeper has already approved doesn't slip back to draft.
Does it handle GST?
Yes. Handl looks in Xero for an active tax rate that matches the tax rate on the invoice and applies it to the taxable lines, so the total in Xero matches the total your client sees. Lines you've marked as not taxable go across with no tax. If Xero has no matching rate, Handl doesn't guess. The invoice is flagged so you can add the rate in Xero.
Do payments from Stripe reconcile?
Handl records each payment against the bank account you chose, so pick the account your Stripe feed lands in. The picker shows account numbers and currencies and marks the account that receives your Handl payments, so you can tell look-alike Stripe accounts apart.
What if a bookkeeper records the payment in Xero first?
Handl picks it up on its next hourly check, records the payment on the Handl invoice and marks it paid, so the reminders stop. This needs payment sync switched on. And if Xero already shows an invoice as paid when Handl goes to post its own payment, Handl doesn't post a second one.
What if I disconnect?
Handl stops syncing and clears the stored connection. Invoices already in Xero stay exactly where they are, nothing is deleted from your books. To remove Handl's access on the Xero side as well, take it off your Xero connected apps. If you're just fixing a dropped connection, use Reconnect instead.
Which plans include it?
Accounting sync is included from the Solo plan up, and there's a 7-day free trial, so you can connect Xero and watch a real invoice go across before you pay anything.
Does it work with my Xero organisation?
Handl works with Xero organisations in Australia.
Can you help me set it up?
Yes. Most people are done in a few minutes, but if you want a hand with the bank account or the tax rate, grab a time with Darren. Book a time with Darren.

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