Melio Xero Integration Guide [2026 Updated]

Connecting your payment and accounting software is one of the fastest ways to eliminate manual data entry and create a more efficient accounts payable system. The integration between Melio and Xero automates the entire process, from importing bills to reconciling payments. This guide provides a step-by-step walkthrough for connecting the two platforms, managing your workflows, and troubleshooting common issues.

Why Integrate Melio with Xero?

While both Melio and Xero are powerful tools on their own, connecting them creates a unified system that automates your entire accounts payable (AP) cycle. This integration goes beyond simply moving data; it creates major efficiencies for your finance team.

Here are the primary benefits of connecting Melio and Xero:

• Eliminate Duplicate Data Entry: When you enter a bill into Xero, it automatically appears in your Melio payment queue. Once you schedule the payment in Melio, the payment record is created in Xero and matched to the corresponding bill. This single action prevents the common error of paying a bill but forgetting to mark it as paid in your accounting software.
• Improve Data Accuracy: Manual entry is a common source of errors—transposed numbers, incorrect vendor details, or wrong payment dates. By syncing data directly between the systems, you greatly reduce the risk of these mistakes, leading to cleaner, more reliable financial records.
• Streamline Bank Reconciliation: Because payment details from Melio are automatically pushed to Xero, bank reconciliation becomes much simpler. The information needed to match bank withdrawals to specific vendor payments is already recorded, turning a tedious monthly task into a quick confirmation process.
• Centralize Your AP Workflow: Instead of managing bills in one system and payments in another, the integration lets you manage your entire workflow in one place. You can approve bills, schedule payments via ACH or check, and see the payment status update automatically in your accounting ledger.

Getting Started: Prerequisites for the Integration

Before you begin the setup process, make sure you have the following in place. Taking a few minutes to confirm these details will ensure the integration goes smoothly.

• An active Melio account: You need a fully set up Melio account for your business. If you don't have one, you can sign up on their website.
• A Xero subscription: The integration requires an active Xero account. You will also need administrative privileges or permissions to add and configure new applications. A standard user permission level may not be sufficient to authorize the connection.
• Connected Bank Account: For the workflow to be truly automated, your business bank account should be linked in both Melio (for making payments) and Xero (for reconciliation). This ensures payment data flows cleanly from issuance to bank statement matching.

Connecting Melio and Xero: A Step-by-Step Guide

Melio offers a native, direct integration with Xero that you can set up in minutes through the Xero App Store. There's no need for third-party connectors or complicated workarounds. Follow these steps to connect your accounts.

Step 1: Find Melio in the Xero App Store

Log in to your Xero dashboard. In the top navigation menu, click on your business name, and from the dropdown menu, select "App Store." This will take you to Xero’s marketplace of integrated applications. Use the search bar to look for "Melio" and select it from the results.

Step 2: Start the Connection Process

On the Melio app listing page, you will find an overview of the integration's features and benefits. Click the "Get this app" button. Xero will display a consent screen asking you to confirm that you want to allow Melio to access your organization’s data.

Step 3: Authorize Access and Log In to Melio

After clicking "Allow access," you will be redirected to the Melio website. Here, you'll be prompted to either log in to your existing Melio account or create a new one. Once you log in, Melio will ask for final permission to connect to your Xero company file. This authorization allows Melio to read vendor data and bills from Xero and to write payment data back into your Xero ledger.

Step 4: Configure Your Sync Settings

Once authorized, Melio will guide you through a brief configuration process. The most important choice is selecting a default payment account. This is the bank account in your Xero chart of accounts from which payments made in Melio will be recorded. For most businesses, this will be your primary business checking account. Selecting the correct account here is vital for making bank reconciliation work correctly.

The integration will also automatically sync your vendors, chart of accounts, and unpaid bills from Xero to Melio. The initial sync might take a few moments, depending on the volume of data in your Xero account.

Step 5: Test the Integration

Your connection is now active. To confirm everything is working, find an open bill in Xero that has now been imported into your Melio "Bills" inbox. Schedule a payment for this bill through Melio. After the payment is processed, check your Xero account. You should see that the bill is now marked as "Paid," and a corresponding payment transaction has been created and applied to it.

Using the Melio and Xero Integration in Your Daily Workflow

With the integration active, your AP process is much simpler. Here is what your new workflow looks like:

1. Enter Bills in Xero: Continue to enter or forward vendor bills to your Xero account as you normally would. You can use Xero's email-to-bills feature or Hubdoc to digitize invoices.
2. Pay Bills in Melio: Log in to your Melio dashboard. In the "Inbox," you will see all the unpaid bills that have been synced from Xero. Select the bills you want to pay, choose the payment method (ACH bank transfer or credit card), and schedule the payment date.
3. Automatic Sync Back to Xero: As soon as a payment is processed in Melio, the integration automatically creates a payment record in Xero. It marks the original bill as paid and ties the transaction to the bank account you designated during setup.
4. Reconcile in Xero: When your bank transactions are fed into Xero, the reconciliation screen will suggest matches between the bank withdrawals and the payment records created by Melio. In most cases, all you need to do is click "OK" to confirm the match.

This closed-loop system ensures that your accounting records are always up-to-date with your payment activities, providing a clear and accurate view of your company’s cash flow and liabilities.

Troubleshooting Common Integration Issues

While the Melio and Xero integration is reliable, sometimes you may encounter minor issues. Here are a few common problems and how to solve them.

Problem: Bills from Xero are not appearing in Melio.

Solution: This is often a simple sync delay. The sync between Xero and Melio typically runs automatically every hour. If you need to see a bill immediately, you can trigger a manual sync. In your Melio dashboard, go to Settings > Accounting Sync and click the "Sync" button. If the bill still doesn't appear, double-check that the bill in Xero has a status of "Awaiting Payment" and has a due date. Bills marked as "Draft" or "Paid" will not sync.

Problem: A payment made in Melio didn't sync to Xero.

Solution: First, confirm the payment status in Melio. Payments only sync to Xero once they are processed, not just scheduled. If the payment has been processed and still isn't in Xero, check the sync error log in your Melio settings. A common error is a deactivated account in your Xero Chart of Accounts that was previously used for payments. Ensuring your vendor details match perfectly between both systems can also prevent sync failures.

Problem: The integration seems to have disconnected.

Solution: Occasionally, the authorization token connecting the two apps can expire for security reasons. To fix this, go to Settings > Accounting Sync in Melio and follow the prompts to re-authorize the connection with Xero. This process is similar to the initial setup and will re-establish the link without any data loss.

Final Thoughts

Integrating Melio with Xero transforms your accounts payable from a manual, time-consuming task into an automated, accurate workflow. By connecting these two platforms, you reduce errors, save time on data entry and reconciliation, and gain a much clearer picture of your company's financial health.

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