Divvy Xero Integration Guide [2026 Updated]

Manually entering every receipt and credit card transaction from your team’s spending into your accounting software is a time-consuming chore that’s prone to errors. If your team uses Divvy for spend management and Xero for accounting, connecting the two platforms automates this entire process, saving you hours and ensuring your books are always accurate. This guide will walk you through the entire process, from initial setup to best practices for maintaining a clean and efficient workflow.

Why Connect Divvy and Xero?

At its core, this integration is about saving time and improving financial accuracy. Divvy excels at controlling spending and capturing expense data in real-time through corporate cards. Xero excels at organizing that financial data to give you a clear picture of your business's health. When they’re not connected, a finance team member must act as the bridge, manually transferring data from one system to the other.

Connecting them offers immediate benefits:

• Saves Time: The integration eliminates hours of manual data entry each month. Instead of exporting CSV files or typing in transactions one by one, the information flows automatically.
• Reduces Human Error: Manual data entry inevitably leads to mistakes-transposed numbers, incorrect categories, or missed transactions. An automated sync ensures the data in Xero perfectly mirrors what was spent in Divvy.
• Provides Real-Time Financial Insight: With data syncing daily, your financial reports in Xero are always up to date. You don't have to wait until month-end to understand your company’s spending patterns and budget adherence.
• Simplifies Reconciliation: When it's time to close the books, the reconciliation process becomes much easier. The Divvy transactions in Xero already include detailed data, such as vendor names, categories, and attached receipts, making them simple to match.

How the Divvy to Xero Integration Works

The native integration between Divvy and Xero creates a direct data pipeline. Once you authorize the connection, Divvy can push finalized transaction data directly into your Xero organization. This happens on a scheduled basis, typically every 24 hours, ensuring your accounting records stay consistently updated without any manual intervention.

Here’s a breakdown of the key data that syncs from Divvy to Xero:

• Transactions: Every swipe of a Divvy card, once cleared, is sent to Xero as a bill. This includes vendor details, transaction amounts, and dates.
• Expense Categories: You map Divvy’s “Budgets” or expense categories to your Xero “Chart of Accounts.” When a transaction is coded to the "Marketing" budget in Divvy, it automatically posts to the corresponding "Marketing Expense" account in Xero.
• Receipts: Any receipt image captured in the Divvy app is attached to the corresponding bill in Xero, creating an audit-proof paper trail directly in your accounting system.
• Vendors: Vendor information from the transaction is carried over, helping keep your payables and vendor records clean in Xero.

Think of Divvy as the point of capture and control, where spending rules are enforced and transaction details are gathered. Xero becomes the official financial record, where that data is organized, reconciled, and used for generating financial reports like your Profit & Loss and Balance Sheet. The integration ensures the story told by both systems is exactly the same.

Step-by-Step Guide: Setting Up the Integration

Getting the two platforms talking is a straightforward process that should take less than 30 minutes. Before you start, make sure you have administrator-level access to both your Divvy and Xero accounts.

Step 1: Navigate to the Integrations Page in Divvy

Log into your Divvy account. On the left-hand navigation menu, find and click on the Integrations option. This is the central hub for connecting Divvy with other software. You'll see a list of available accounting integrations-find Xero and click the Connect button.

Step 2: Authorize Access to Xero

You will be redirected to a Xero login screen. Enter your Xero credentials and sign in. Xero will then ask you to grant Divvy permission to access your organization's data. This step is a standard security measure to ensure you are explicitly allowing the two systems to share information. Review the permissions and click Allow access. After authorization, you will be redirected back to the Divvy platform.

Step 3: Configure Your Basic Sync Settings

Once back in Divvy, you'll need to configure a few high-level settings that determine how data is sent to Xero.

• Default Bank Account: Choose the Xero Bank Account you want your Divvy transactions paid from. This should be the real-world bank account or credit card account that pays your Divvy balance. This ensures that when Divvy creates a bill in Xero, it knows which account it will eventually be paid from.
• Sync Bills as: You can choose whether you want bills to appear in Xero as Awaiting Approval or Awaiting Payment. We recommend "Awaiting Payment" for most workflows, as the expenses have already been approved within Divvy's budget structure.

Step 4: Map Divvy Budgets to Xero's Chart of Accounts

This is the most important step for ensuring accuracy. You need to tell Divvy exactly which account in your Xero Chart of Accounts corresponds to each budget in Divvy. The interface will show you a list of all your active Divvy budgets on one side and a dropdown menu of your Xero accounts on the other.

For each Divvy budget, select the proper Xero expense account. For example:

• Divvy Budget: “Software Subscriptions” -> Xero Account: “6520 - Software & Technology”
• Divvy Budget: “Marketing & Ads” -> Xero Account: “6450 - Advertising & Marketing”
• Divvy Budget: “Travel” -> Xero Account: “6610 - Travel Expenses”

Be as thorough as possible. If you miss mapping a budget, transactions from that budget will fail to sync and cause errors. Take your time and double-check each mapping. Once you are finished, save your changes.

Step 5: Run Your First Sync and Verify the Data

After you’ve completed the mapping, the integration is officially live. It will perform its first sync within 24 hours. However, you can typically trigger a manual sync for a specific date range from the integration settings page to pull in recent transactions a bit faster.

After the sync completes, log in to Xero and check the results:

1. Go to Business > Bills to pay.
2. Look for the new bills created by Divvy. You should see a list of recent transactions.
3. Click on a few bills to inspect the details. Verify that the vendor, date, amount, and expense account are correct.
4. Check for a small paperclip icon, indicating that the receipt image from Divvy is attached.

If everything looks correct, your integration is set up successfully!

Best Practices for a Smooth Workflow

Connecting the systems is just the beginning. To get the most out of the integration, follow these ongoing best practices:

• Maintain Your Mappings: Whenever you create a new budget in Divvy, immediately go to the integration settings and map it to the correct Xero account. This prevents transactions from getting stuck in an error state.
• Enforce Receipt and Memo Policies: The more detail your team provides in Divvy when they make a purchase, the more enriched the data will be in Xero. Enforce a clear policy that requires receipts and a brief description for every transaction.
• Reconcile Regularly: Don't treat the sync as a "set it and forget it" system. At month-end, perform a full reconciliation. Compare your Divvy statement balance to the amounts synced to Xero to catch any potential discrepancies before they become larger problems.

Common Integration Problems and How to Solve Them

Even with a solid setup, you might encounter an issue now and then. Here are fixes for the most common problems.

• Symptom: Transactions aren’t syncing.
  Solution: The most common cause is a newly created, unmapped budget. Go to your integration settings in Divvy and check for any budgets that are flagged as unmapped. Map them, and the transactions should sync on the next cycle. Another possibility is that the connection to Xero needs to be re-authorized; the integrations page will show a "Reconnect" button if this is the case.
• Symptom: Transactions appear in the wrong expense account in Xero.
  Solution: This is a simple mapping error. In Divvy, find the budget associated with the incorrect transaction and adjust its mapping to point to the correct Xero GL account. You will need to manually re-categorize the already-synced transactions in Xero, but all future transactions will now post correctly.
• Symptom: Duplicate transactions appear in Xero.
  Solution: This sometimes happens if you have both the Divvy integration and a direct bank feed for the same Divvy credit card account active in Xero. The integration pushes a data-rich bill, while the bank feed pushes a simple transaction line. You should rely on the Divvy integration as your primary source of data and disable or ignore the separate bank feed for that account.

Final Thoughts

Connecting Divvy and Xero transforms your expense management from a manual, tedious task into a streamlined, automated workflow. By properly configuring this integration, you ensure data flows accurately between spend management and your core accounting system, giving you more reliable financial data and more time to focus on strategic work.

This automation is perfect for handling daily transactions, but questions can still arise about the correct tax treatment for a specific expense. For those moments when you need a clear, authoritative answer about U.S. tax compliance or deductibility, Feather AI delivers instant, citation-backed answers from IRS code, rulings, and procedures, acting as your powerful research assistant.