TradeGecko Xero Integration Guide [2026 Updated]

Connecting your inventory management with your accounting software is one of the most effective ways to create an efficient, error-free workflow. When you use QuickBooks Commerce (formerly known as TradeGecko) for inventory and Xero for your books, syncing them ensures your sales, stock, and financial data stay aligned automatically. This guide provides a direct, step-by-step walkthrough for setting up the integration, explains what data transfers between the platforms, and offers solutions for common issues you might encounter.

Why Connect QuickBooks Commerce and Xero?

Before diving into the setup, it's worth noting why this integration is so valuable. Manually entering sales orders from your inventory system into your accounting software is not only time-consuming but also creates opportunities for typos and mistakes. A direct connection solves this by automating the data flow between the two platforms.

Here are the primary benefits:

• Eliminate Double Data Entry: When a sale occurs in QuickBooks Commerce, an invoice is automatically created in Xero. This removes the need to manually recreate transaction records, saving hours of administrative work.
• Ensure Financial Accuracy: Automating the sync means your revenue, cost of goods sold (COGS), and inventory asset values are always up-to-date and accurate in Xero. This leads to more reliable financial statements and cleaner books at tax time.
• Improve Operational Efficiency: With real-time data, your team can make better decisions faster. Your finance team has immediate visibility into sales performance, while your operations team knows that the inventory counts on the shelf match the value in your accounting records.
• Streamline Bank Reconciliation: Payments recorded in QuickBooks Commerce are pushed to Xero, making it much simpler to match deposits in your bank feed to the corresponding invoices.

Step-by-Step: Setting Up the Native Integration

The most straightforward way to connect these two platforms is through the native integration available in their respective app marketplaces. This method is designed to be user-friendly and doesn't require any custom code. Here’s how to get it done.

1. Check Your Prerequisites

Before you begin, make sure you have everything you need to complete the setup without interruptions:

• An active QuickBooks Commerce account with administrator-level permissions.
• An active Xero account, also with administrator-level permissions to authorize new applications.
• A few minutes of dedicated time to configure and test the settings.

2. Connect the Applications

Once you've confirmed you have the necessary access, it's time to establish the connection.

1. Log in to your QuickBooks Commerce account.
2. Navigate to the "Apps" or "Integrations" section from your main dashboard or settings menu.
3. Search for or locate the Xero integration in the list of available applications and click on it.
4. Click the "Connect" or "Install App" button. You will be redirected to the Xero login page.
5. Enter your Xero credentials and log in. Xero will display a screen asking for your permission to allow QuickBooks Commerce to access your company data. Review the permissions and click "Allow access."
6. After authorization, you will be redirected back to QuickBooks Commerce to finalize the settings.

3. Configure Your Sync Settings

This is the most important step, as it determines how data flows between the two systems. Take your time to map your accounts correctly to ensure your financial reporting is accurate.

• Map Your Accounts: You'll need to tell QuickBooks Commerce which accounts in your Xero Chart of Accounts to use. This typically includes mapping your sales revenue, accounts receivable, and payment accounts. For instance, link your QuickBooks Commerce sales transactions to your "Sales" revenue account in Xero.
• Tax Mapping: Match the tax types in QuickBooks Commerce to the corresponding tax rates you've set up in Xero. This is critical for accurate sales tax reporting.
• Define Sync Triggers: Choose when you want data to be sent to Xero. Most businesses set this to sync automatically when an invoice is finalized or a payment is received in QuickBooks Commerce.
• Inventory Asset Account: Ensure your inventory data from QuickBooks Commerce maps to the correct inventory asset account in Xero to keep your balance sheet accurate.

After configuring these options, save your settings to activate the integration.

4. Test the Connection

Never assume an integration is working perfectly without a test. Create a test sales order in QuickBooks Commerce to verify that the data appears correctly in Xero.

• Create a new sales order for a test customer.
• Finalize the invoice and record a payment for it within QuickBooks Commerce.
• Log in to Xero and check if a new invoice has been created for the test customer. Verify that the customer details, products, amounts, and tax information are all correct.
• Check if the payment you recorded has been applied to the invoice in Xero.

If everything looks correct, the integration is set up and ready to go.

What Data Syncs Between QuickBooks Commerce and Xero?

Understanding which data points are shared is key to getting the most out of the integration. While the exact capabilities can change, the core data sync typically includes:

• Customers/Contacts: When you create a new customer in QuickBooks Commerce, their contact information is created in Xero to be associated with invoices.
• Invoices and Sales Orders: This is the primary function. Finalized invoices from sales orders in QuickBooks Commerce generate corresponding "Awaiting Payment" invoices in Xero.
• Payments: When you record a payment against an invoice in QuickBooks Commerce, that payment record is sent to Xero and applied to the correct invoice.
• Products/Items: Product information, including SKUs and pricing, is synced to Xero, allowing for detailed sales reporting on specific items.
• Stock Levels & Inventory Value: The integration updates inventory levels and the corresponding asset value on your balance sheet in Xero, helping you maintain accurate records for Cost of Goods Sold (COGS).

Exploring Other Integration Options

While the native integration works for most businesses, sometimes you need more custom control. In those cases, you can explore a few other methods:

• Third-Party Connectors: Tools like Zapier or Make (formerly Integromat) act as a bridge between thousands of apps, including QuickBooks Commerce and Xero. These platforms allow you to create custom workflows. For example, you could create a rule that sends a notification to a Slack channel every time a high-value invoice from QuickBooks Commerce is created in Xero.
• Custom API Integration: For businesses with unique workflows or extensive custom needs, using the APIs (Application Programming Interfaces) for both QuickBooks Commerce and Xero is an option. This requires a developer to build a custom solution that connects the two systems according to your exact specifications. It offers the most flexibility but is also the most complex and costly approach.

How to Troubleshoot Common Problems

Sometimes, integrations hit a snag. Here’s a quick guide to fixing the most common issues:

• Authentication Errors: If the connection fails, it's often due to expired permissions. The simplest fix is to go back into your QuickBooks Commerce integration settings, disconnect the Xero app, and then reconnect it, re-authorizing access.
• Data Mismatches or Duplicates: This can happen if account mapping is incorrect or if records (like customers or products) were created in both systems before the integration was active. Review your account mapping settings carefully and use a consistent naming convention for customers and product SKUs to avoid duplicates.
• Sync Delays: Most native integrations don't sync in literal real-time but rather every few minutes or hours. If you don't see an invoice appear immediately in Xero, wait a few moments and refresh. Check your settings to confirm the sync frequency.
• Missing Data on Invoices: If an invoice shows up in Xero but is missing tax information or is posted to the wrong account, the error is almost always in the account mapping configuration. Return to the setup steps and verify that your sales, tax, and bank accounts are correctly linked.

Final Thoughts

Connecting QuickBooks Commerce with Xero establishes a reliable source of truth for your sales and inventory data, giving you the clarity needed to manage your operations and financials effectively. By following the steps outlined here, you can set up a stable connection that saves time, reduces errors, and helps you maintain immaculate books.

As your systems become more integrated, you may run into specific tax questions related to things like multi-state sales tax nexus from your e-commerce channels or proper inventory valuation methods on your financial statements. For those complex situations, having a specialized resource is exceptionally helpful. We designed Feather AI to provide instant, citation-backed answers from IRS publications and state tax codes, helping you handle nuanced accounting and tax research without hours of manual digging.