Xero & Shopify Integration: Step-by-Step Guide for UK Founders
If you’re running an eCommerce brand on Shopify here in the UK, you probably know the feeling: sales are coming in, orders are flying out, but your bookkeeping feels like a never-ending headache.
Trying to manually keep your Shopify sales, fees, and payouts in sync with Xero is a time sink, and if you’re scaling, it’s a risk you don’t need.
Getting Shopify and Xero properly integrated isn’t just a nice-to-have. It’s essential if you want to save time, reduce errors, and get a clear picture of your cash flow.
In this blog, I’m breaking down exactly how to connect Shopify with Xero step-by-step, so you can spend less time juggling numbers and more time growing your brand.
What Usually Happens Without Integration
Most founders I speak with start off trying to track everything manually. It sounds manageable at first, just copy-pasting orders, fees, and payouts into Xero.
But soon, things get messy:
Manual errors creep in and costs don’t match up
Hours are wasted reconciling sales and fees instead of growing the business
Your cash flow picture is always delayed or inaccurate
VAT deadlines sneak up because your books aren’t ready
Stress builds, and you’re stuck in reactive mode instead of strategic growth
Without a reliable connection between Shopify and Xero, you’re always playing catch-up, and that’s not sustainable.
Why Integrate Shopify with Xero?
Here’s why making the integration work properly is a game changer:
Save Time: Automation means fewer manual entries and less room for error
Better Accuracy: Fees, refunds, and sales sync automatically to your accounts
Clearer Cash Flow: Real-time financial data helps you plan and forecast better
VAT Ready: Your books stay up to date, so VAT returns aren’t a scramble
Less Stress: Spend time making decisions instead of fixing mistakes
Step-by-Step Guide to Integrate Shopify and Xero
Here’s how to get started with the integration, the straightforward way:
1. Choose Your Integration App
Shopify doesn’t connect natively to Xero, so you’ll need a third-party app. Popular options include:
A2X, widely used for detailed eCommerce accounting
Bold Brain, combines integration with analytics
Shopify’s Xero Connector, for basic syncing
Pick one based on your business size and needs.
2. Connect Your Accounts
Install the app through the Shopify app store
Log into Xero via the app and authorize access
Choose your default accounts for sales, fees, and taxes
3. Set Up Your Mapping
Make sure the app knows how to classify transactions:
Match Shopify sales to the right revenue accounts
Allocate fees and commissions properly
Set up VAT rates that comply with UK tax rules
4. Test the Sync
Run a small batch of transactions through to check everything lines up:
Compare sales reports in Shopify with what hits Xero
Verify fees and taxes are recorded accurately
Look for any missing or duplicated entries
5. Automate and Monitor
Once you’re confident, turn on automatic syncing. But keep an eye on it regularly, especially after big sales events or product launches.
Real-Life Example
One client I worked with was spending 10+ hours a week manually entering orders and fees into Xero. After setting up a reliable integration using A2X, their bookkeeping errors dropped to zero and they reclaimed those hours to focus on marketing and product development.
It wasn’t a magic fix overnight, but the right systems helped them get control and plan with confidence.
Final Thoughts
Integrating Shopify and Xero might sound technical, but it’s one of the smartest moves a growing eCommerce brand can make.
If you’re still manually juggling numbers or feeling unsure about your setup, taking the time to get this right will pay off big.
Need finance help that actually listens and understands your eCommerce business?
[Book a free call] and let’s get your numbers working for you, not against you.