June 4, 2024
8 min

Xero Amazon Integration: Step-by-Step Guide

Step up your E-commerce game with Xero Amazon integration. This guide shows you how to merge accounting with online sales for ultimate growth effortlessly.
Xero Amazon Integration: Step-by-Step Guide
Table of contents

Feel like you’re drowning in an endless sea of Amazon data and tedious accounting work every month? We get it - juggling order fulfillment, customer service, and disjointed bookkeeping can overwhelm even the most organized Amazon sellers.

But what if we told you there was a better way? Xero Amazon integration can automate your accounting, provide real-time financial insights, and give you back hours each month to focus on business growth.

In this guide, we’ll explore how to seamlessly sync your Amazon and Xero accounts with Link My Books and unlock a user-friendly, time-saving bookkeeping process. Let’s dive in!

Key Takeaways from this Post

Automate Accounting with Xero: Integrating Xero with Amazon through Link My Books saves time, reduces errors, and offers real-time financial insights, allowing sellers to focus on growth instead of bookkeeping.
Essential Integration Features: Key features include automatic syncing, accurate categorization, multi-region and multi-currency support, payment reconciliation, tax management, inventory syncing, and error handling for smooth financial management.
Easy Setup with Link My Books: Link My Books provides a straightforward setup with a free trial, continuous syncing, robust customer support, and scalability, making it ideal for eCommerce sellers and ensuring maximum efficiency and accuracy.
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Perks of Automating Amazon Accounting

Before we dive into the integration specifics, let's look at some of the key benefits of automating your Amazon accounting processes with Xero:

  • Save time: Automation eliminates manual downloading, organizing, and entering of data. This can save 6+ hours every month previously spent on bookkeeping.
  • Reduce errors: Automated syncing removes the risk of human error that exists with manual data entry, making your books far more accurate.
  • Gain insights: With real-time data in Xero, you can generate reports to better understand sales, costs, profits, and more.
  • Focus on growth: Automation frees you up to spend more time on high-impact tasks like product development, marketing, and process optimization.
  • Scalability: As your sales volume increases, automation handles it seamlessly, whereas manual methods become more cumbersome.
  • Accessibility: Cloud-based integration gives you access to up-to-date books from anywhere, on any device.

Clearly, integrating Xero and Amazon provides significant time and accuracy advantages compared to manual bookkeeping.

Next, let's look at the key features of a robust integration.

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Top Features of an Xero Amazon Integration

When evaluating Xero and Amazon integration tools, here are some key features to look for:

  • Automatic syncing: The integration should automatically pull sales, refunds, fees, taxes, and other transactions from Amazon into Xero. This eliminates the manual exporting and importing of data.
  • Accurate transaction categorization: The tool should properly categorize each transaction in Xero for correct reporting. Sales should go under revenue, fees under expenses, etc.
  • Multi-region support: Selling on multiple Amazon marketplaces? The integration should combine data from all regions into your Xero account.
  • Multi-currency support: The tool should handle currency conversions automatically for international selling.
  • Payment reconciliation: Matching Amazon deposits in your bank feed to the corresponding transactions in Xero streamlines reconciliation.
  • Tax Management: A robust tax management system that accurately calculates and reports sales taxes based on your location and product categories.
  • Inventory syncing: Two-way sync for inventory quantities keeps your books and fulfillment operations in harmony.
  • Error handling: Robust error and exception handling ensures smooth data syncing between the platforms.
  • Real-time syncing: The quicker the transactions flow from Amazon to Xero, the better the visibility you have into your business’s health.
  • Inventory Management: Some integration tools also offer inventory management features, allowing you to track stock levels and supplier orders while forecasting future demand.
  • Scalability: As sales grow, the integration should easily handle high order volumes without issues.
  • Ease of use: A simple setup process and intuitive UI make integration accessible for all users.

These features optimize the Xero and Amazon integration, automate your accounting processes, and provide complete and accurate books. 

Our platform, Link My Books, delivers on all these key integration must-haves, making it a premier choice for eCommerce sellers. 

Let's take a look at this top integration tool.

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Best Xero Amazon Integration Tool - Link My Books

As the creators of Link My Books, we designed it to be an optimal choice for eCommerce sellers looking to automate their accounting process.

Our team consists of former Amazon sellers and accountants, which helped us build a comprehensive solution that addresses your business's unique challenges.

With an average rating of 4.9/5 stars on Capterra and 5.0/5 stars on the Xero App Store, you can trust our platform as thousands of sellers worldwide do!

Here's why Link My Books is an excellent choice for your Xero Amazon Integration needs:

  • Seamless Integration: It connects your Amazon Seller Central account with Xero, ensuring hassle-free data synchronization.
  • Accurate Accounting: With proprietary tax wizards for US, UK, and Australian sellers, our tool ensures accurate calculation and reporting of sales taxes, VAT, and GST.
  • Multi-Channel Support: It supports integration with various sales channels, including Amazon, Shopify, eBay, Etsy, Walmart, and TikTok Shop, making it a versatile solution for your eCommerce accounting.
  • Exceptional Customer Support: We provide unparalleled customer support and technical assistance, ensuring you have the guidance you need every step of the way.

Besides these features, some specific advantages of Link My Books include:

  • Suggested default settings based on accounting best practices.
  • Detailed fee breakdowns for transparency into expenses.
  • Profitability reporting to complement standard financials.
  • Affordable and transparent pricing tailored to business size.
  • There is a 14-day trial to test it out risk-free.

For these reasons and more, Link My Books is the best tool for automating your Amazon accounting with Xero. 

Experience the benefits yourself without any commitment - sign up now for our free trial and say goodbye to manual accounting processes!

Link My Books is versatile and easy to use.

How to Integrate Amazon with Xero

Integrating Amazon Seller Central with Xero via Link My Books takes just a few simple steps:

1. Start Your Free Trial

Begin by signing up for a free 14-day trial with Link My Books. No credit card or password is required – simply sign in using your Xero account.

2. Connect Amazon Account

In just a few clicks, connect your Amazon Seller Central account to Link My Books. As an Approved Amazon Software Partner, our tool only requires read-only access to your transaction data.

3. Map Accounts & Confirm Setting

Select the appropriate Xero revenue, expense, and tax accounts for each transaction type. Also, take a few minutes to confirm your account and tax rate preferences.

Link My Books will suggest sensible defaults based on our extensive experience working with thousands of sellers and accountants.

4. Enable Auto-Sync 

Set a start date for Link My Books to begin posting data from Amazon to Xero. Turn on continuous, real-time data syncing.

That's it! With these quick steps, your Amazon transaction data will now flow seamlessly into Xero automatically. Contact our support team for any setup assistance.

While the setup is straightforward, there are some common mistakes to avoid with Amazon and Xero integration.

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Xero and Amazon Integration Mistakes to Avoid

When getting set up, be sure to steer clear of these common blunders:

  • Relying solely on Amazon reports: Settlement reports don't provide all the data needed for accurate accounting. An integration pulls more comprehensive information.
  • Not syncing fees and refunds: Only syncing sales provides an incomplete picture. All transaction types should flow into Xero.
  • Overlooking tax settings: Neglecting to set up the correct tax rates and rules can result in incorrect sales tax calculations, potentially leading to overpaying or underpaying taxes.
  • Inaccurate mapping: Double-check accounts mapped in Xero for each transaction type. Failing to do so can lead to inaccurate financial reporting.
  • Ignoring errors: Proactively resolve any data flow errors to ensure transactions are syncing correctly.
  • Disjointed inventory: Enable two-way inventory sync to keep Xero and Amazon in harmony.
  • Entering individual orders: Summarized journals keep your books clean vs hundreds of granular invoices.
  • Lack of communication: If you work with an accountant, ensure clear communication and collaboration to avoid any misunderstandings or errors in the integration process.

Avoiding these pitfalls ensures your Xero Amazon integration provides the maximum value.

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Frequently Asked Questions (FAQs)

Here are the answers to some commonly asked questions about Xero and Amazon integration:

Which Transactions Can be Synced between Xero and Amazon?

With Link My Books, you can sync all Amazon Seller Central transactions into Xero automatically, including sales, refunds, fees (such as shipping, referral, and FBA fees), other expenses, as well as collected sales tax.

This comprehensive synchronization ensures that your financial records in Xero accurately reflect your Amazon business's performance.

How Can I Resolve Sync Errors in Xero Amazon Integration?

In the unlikely event of a sync error, Link My Books provides detailed error logs and comprehensive documentation to help you troubleshoot and resolve the issue quickly. Also, our exceptional support team is always available to assist you.

How Frequently Does Amazon Data Sync with Xero?

You can set the sync to continuous real-time for up-to-date visibility. Transactions will flow into Xero within minutes of occurring on Amazon.

Can Xero Amazon Integration Handle Large Volumes of Transactions?

Yes, Link My Books seamlessly handles sellers processing tens of thousands of orders without any slowdowns or caps. Our automation technology scales as you grow.

Conclusion

You now have a clear understanding of how to integrate Amazon and Xero for automated, accurate accounting. While the benefits are immense, what matters most is taking that first step to implementation.

Link My Books makes it easy and risk-free to get started. Our comprehensive features and 24/7 real-time syncing between Amazon and Xero provide the solution you need to eliminate bookkeeping headaches.

Schedule a personalized demo at your convenience. Our team is ready to answer any questions and help you seamlessly connect your accounts. Take control of your financial management today and unlock newfound time to focus on business growth!

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