Xero Accounting Integration
You can integrate your Xero account with Thread so that your issued bills, client's data, and payments in Thread sync with Xero, and payments added on those synced invoices in Xero sync from Xero to Thread. First, you need to turn the integration on and configure the integration to ensure the sync is successful.
Thread only supports a single Xero integration account per tenant.
Turning on Integration with Xero
To integrate with Xero accounts, first Xero must be toggled on in the Integrations tab of Thread.
- 1. Select the settings tab
on the bottom left of your menu.
- 2. Select Integrations tab and then Commons.
- 3. Toggle On Xero to open a pop-up where you can proceed with logging in to your Xero account and configuring the Xero integration settings.
Integration will not be turned on until the configuration has been completed.
Xero Integration Configuration
You can configure a Xero account for your tenant by navigating to: Settings > Integrations > Commons (app.thread.legal/settings/integrated-accounts)
The Xero integration will be switched on once user completes the login and account/tax mappings.
- Click Sign In to proceed to a Xero login page and enter your Xero login details.
Bill account:
Please select a relevant account from your Xero chart of accounts. This account will be used on all invoice line items that will sync from Thread bill to invoice in Xero. It will also be used to sync payments from Thread to Xero when a new payment is added in Thread.
Bill account defines an account for both bills & payments, so the account selected must have "Enable payments to this account" enabled in Xero.
- Tax Mappings:
The tax rates in Thread must have an equivalent value to Xero tax rates.
The available tax mappings are filtered by the selected Xero bill account (some tax types cannot be used with certain accounts).
If you select a tax rate within a bill (tax rate recently added in Thread) that is not yet mapped to Xero tax rates, the bill will generate successfully in Thread with an alert warning you that the bill has not synced to Xero. You will need to complete the mapping settings and then re-issue the bill again to sync it to Xero.
Changing a Xero account:
- You can change the Xero integration account when you have permission by signing out from the existing account.
- The Xero bill account and tax mappings must be re-configured to ensure consistency across Xero accounts/organisations.
When the Xero integration is enabled, the “Require link to bill” option will be automatically turned on to require payments to be linked to a bill.
It will not be possible to turn this setting off.
Data Sync
The data that will sync from Thread to Xero include your main client's details such as full name and email address, and all items included in the issued bill with the corresponding value (exception: fixed fee bills). You will only see the synced data in Xero once the bill has been issued in Thread.
You must have a Primary/Main client on the matter for the bill and client to sync with Xero. If you are not seeing your client and bill in Xero, check that your client is assigned as primary/main client on the matter, and the bill has been issued.
Thread does not sync cheque requisitions, or client accounts transactions. Clients Sync
To view your customer details, on the Customer page in Xero click on the customer you wish to view. Thread syncs contact name and email address with Xero, which can be seen in Contact Details in Xero.
Bills Sync
Once the issued bill has synced with Xero, it is not possible to un-issue it in Thread, unless the invoice has been marked as Void or Deleted in Xero. Follow the steps to Include Matter Time in a Bill, then Issue Bill. You can use any template for creating a bill, it will not affect how the bill will show in Xero.
You will see that the bill synced with Xero on the Financial > Bills tab of the matter in Thread, under the 'Issued' column. When you hover over the sync icon, you can see the Xero invoice number. Clicking on the sync icon will open that invoice in Xero.
Once the bill has been issued in Thread, you will see it showing in Xero Invoices page.
All items included in the bill will be listed on the invoice, with time record description, and value amounts.
Time and hourly rates from Thread bill do not show on the synced invoice in Xero.Thread:
Xero:
You can make any further changes to the invoice in Xero as needed. If you have multiple matters for the same client, you can include matter name or matter code in the bill name in Thread which will show as invoice Reference in Xero (including the bill ID); or use a note field on the invoice in Xero to show it on the invoice. The matter code and name will not sync from Thread to Xero.
Bills integration with Xero is a one-way sync, any changes made to an invoice in Xero do not sync back to Thread. Unissuing Bills
If an invoice in Xero has been marked as Void or deleted in Xero, you will then be able to also unissue the bill in Thread. On the matter Bills page, the bill sync status will change to a void icon in the 'Issued' column.
After successfully unissuing the bill, another pop-up will appear asking you if you wish to also delete the bill from Thread.
If you choose 'Delete', the bill will no longer show on the Bills page of Thread.
Choosing 'No' will instead keep the bill so you can make further changes and re-issue, if needed. When a bill is re-issued in Thread, a new invoice will be created in Xero.
Tax Amounts Sync
Synced bill from Thread to Xero will show the correct corresponding tax percentage and amount in Xero.
Tax amount sync is only applicable to bills issued as of 19th September 2025.
Bill details in Thread will be synced to Xero with the correct tax value by using tax mapping settings that were done in the Xero configuration (see above).
When the bill syncs to Xero:
The line items will have corresponding tax rate and value
The invoice amount type will show as "Exclusive" - (Tax Exclusive).
Thread bill
Xero invoice
Payments Sync
Thread integration with Xero supports two-way sync of payments linked to bills/invoices.
Thread to Xero payment sync
When a payment has been added in Thread and linked to a bill that synced with Xero, the payment will also be created on Xero for that invoice. Payment will go against the same account as the bill line items.
Thread bill
Xero invoice
Once the payment has synced with Xero, you will not be able to edit the payment fields other than Unique Ref, Description, and Notes.
Payment added in Thread can only be synced to Xero once the invoice has been Approved in Xero.
Xero to Thread payment sync
When a payment was added in Xero for an invoice that has synced from Thread, the payment will automatically get added to the relevant Thread matter and be linked to that bill in Thread.
The payment will show as entered by 'Sync Account', and an email notification will be sent to the matter owner. Only Unique Ref, Description, and Notes fields will be editable, and it will not be possible to delete the payment in Thread or change the bill that it is linked to.
Should your payment in Thread not sync to Xero, if for example the invoice has not yet been approved in Xero, you can manually sync the payment by clicking on sync icon on the payment in Thread once the Xero invoice has been approved.
within the bill details
on the Payments page
You will then see a green sync icon and the payment ID when you hover over.
If a payment is deleted in Xero (Remove & Redo option), it will also be deleted in Thread. You will not be able to manually delete payments in Thread that synced from Xero.
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