Xero is one of the most popular cloud accounting platforms globally — particularly in the UK, Australia, and New Zealand — and is the platform of choice for many accounting firms managing client books. TallyArc's Xero integration means that every invoice sent through TallyArc and every payment received automatically appears in Xero, keeping your accounts receivable ledger accurate in real time without any manual data entry.
What the integration does
- Contacts in Xero sync to TallyArc as clients (with email, phone, and billing address)
- New invoices created in TallyArc create approved invoices in Xero's AR module
- When a client pays via TallyArc's portal, a payment is posted to the Xero invoice automatically
- Credit notes issued in TallyArc create Xero credit notes, applied to the correct invoice
- Xero account codes map to TallyArc revenue categories for correct GL posting
OAuth connection
Xero uses OAuth 2.0 — connection takes under 2 minutes:
- In TallyArc, go to ERP → Xero → Connect
- Click Connect to Xero — you'll be redirected to Xero's authorisation page
- Select the Xero organisation to connect and click Allow access
- You're returned to TallyArc with the connection active
- Map TallyArc revenue categories to Xero account codes and save
Account code mapping
Xero uses account codes (e.g. 200 for Sales, 400 for Advertising) rather than long GL account names. During setup, map each TallyArc invoice category to the correct Xero account code. TallyArc will pre-populate common mappings, but review them against your Xero chart of accounts.
Tax rates
TallyArc imports Xero tax rates (e.g. 20% VAT, Zero Rated) and makes them available when creating invoices. This ensures tax is calculated and posted consistently between the two platforms — important for VAT/GST filing accuracy.
For accounting firms using Xero Practice Manager
If you manage multiple client entities in Xero, TallyArc supports connecting to multiple Xero organisations — each TallyArc company maps to a separate Xero organisation. Invoices for each entity post to the correct Xero organisation independently, keeping client books clean even when you're managing billing from a single TallyArc account.
Token refresh
Xero's access tokens expire every 30 minutes, but TallyArc handles automatic token refresh using the offline_access scope. You shouldn't need to reconnect unless you revoke access in Xero's connected apps settings.