Sometimes, I come across online apps that have a one-two punch to deliver a wallop to boost my small business clients. And when I do, I get pretty excited about sharing the information with others. So when I came across FreshBooks and Xero, I was so ecstatic I had to share the knowledge by announcing it to everyone who would listen.
The first punch comes from FreshBooks with the promise to easily track time and billing and make invoicing a breeze. As an online invoicing service, FreshBooks helps you keep your time and expense organized, send professional branded invoices, and even collect online payments by credit card, PayPal, or eCheck. That will save you time, impress your clients, and get you paid faster.
On the other hand, Xero takes up where FreshBooks leaves off with the number two punch. It provides easy to use, online accounting software and services for small and medium businesses. It includes a full accrual accounting system with a cashbook, automated daily bank feeds, invoicing, debtors, creditors, sales tax and reporting. Businesses requiring more advanced accounting features such as double-ledger accounting and maintaining complete financial management and reporting will find Xero to be a good fit.
With the Xero-FreshBooks integration, you can import your FreshBooks invoices into Xero, as well as the clients and payment history associated with those invoices. You can utilize FreshBooks to create professional looking invoices that your customers receive instantly, and collect payments online. Then import this data into Xero, and consolidate this information with the rest of your accounts.
Here is a brief description of the process to get you started.
- To start the Xero connection with your FreshBooks account, go to Settings > General Settings > Xero Network.
- Click on the Set up button for FreshBooks.
- Complete these fields to set up your connection with FreshBooks. These settings will be saved.
Enter your FreshBooks domain name.
Default Sales Account
The revenue account in Xero you want to code your invoices to. This will most likely be Revenue – Sales (you will be able to edit an imported invoice to change this if you don’t want to use the default account on some occasions).
Payment Bank Account
Choose the bank account in Xero you want your payments recorded to. All of your payments in FreshBooks other than method ‘PayPal’ will be recorded to this account. This account must be in your base currency.
The PayPal account in Xero you want your payments recorded to. All of your payments in FreshBooks with method ‘PayPal’ will be recorded to this account. This account must be in your base currency.
You can choose to select either a Payment Bank Account, PayPal Account or both. If you select a bank account only and a payment is marked as Paypal, it will be created in the bank account you have chosen.
If you choose a PayPal account only, then all payments are recorded in that account. If you choose both, then PayPal payments will be recorded in the PayPal account in Xero and all other payment types will be recorded in the bank account.
You can edit the default Sales and Payment Bank Account at any time by going to the settings option.
Log in to FreshBooks to complete connection
Once you’ve completed the form you’ll be asked to log in to FreshBooks to complete the connection with Xero.
Check status of synchronization
Once the connection has happened you’ll be taken back Xero Network > FreshBooks, where you can see the status of the synchronization.
In combination, these two apps are a perfect fit for small businesses wanting to take advantage of and reap the benefits of cloud based solutions. For help in getting started, check out the Xero support here or contact us to discuss how we can assist you.
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