Although payroll is an important part of running your business, many business owners are also likely to also use an accounting system such as Xero. The good news is our payroll system can be integrated into Xero, and include Payroll data into your accounting information.

As the Xero interface is a web service, SmartPayroll can automate the process of transferring data to Xero at the click of a button. All that is needed is an internet connection.

It is not necessary to log on to Xero to import the data, the data is “pushed” into your company’s Xero account from the payroll software.

Click here to download a full instruction manual.

Account codes

All payments that go to Xero are coded. Customers can use one code that represents the gross pay or each portion of the gross pay can be separated into separate codes:

– Normal pay
– Non-normal pay (eg overtime)
– One off payments
– Allowances
– Gross Kiwisaver company contributions (or other gross superannuation payments from the company)

Deductions and net superannuation amounts that are held back in company accounts can also be coded to allow these to be tracked in Xero for later payment. This will include PAYE but only for customers using SmartPayroll as a calculator

Find out from SmartPayroll which codes are necessary

1. Click on Company Details.
2. Click on GL Accounts in left-hand blue frame. The allowances, deductions and other pay types will be listed for your company

You will need to decide if you wish to separate all the payments with their own codes or click the Combine all Payments checkbox and keep the payments under one code.  If using this option you can still code the deductions and Kiwisaver company contributions separately.

Open your Xero account to find the General Ledger code numbers or create new ones

1. Log into Xero, click on the Settings button and click Chart of Accounts
2. Browse to find the correct codes, or to set up a new one, click on the Add Account button. Make a note of the code numbers.  Once the codes have been set up at SmartPayroll end, the pay can be exported to Xero.
3. Go back to SmartPayroll to enter the codes

Entering the General Ledger codes in SmartPayroll

1. Click on Company Details.
2. Click on GL Accounts in left-hand blue frame.
3. Enter the codes for each payment or deduction and click the Save button.

Exporting the Payroll information from SmartPayroll to your Xero Account

1. In SmartPayroll click on Run a Pay
2. Click Export Pay Details in the left-hand frame
3. Choose Export to Xero

4. Enter the new invoice number for this payroll.

5. Choose whether the invoice will be sent through as a draft (default value) or Authorised invoice.
     Note:    Xero partner / Cashbook edition users should select the Authorised option.

6. Select the pay and click Export Data at the bottom of the screen.
You will only need to set this up once.

7.  A Xero login screen will appear –Enter your login and password for Xero.

8. Another screen appears asking you to confirm the link between the payroll and your Xero account.  Click the Authorise button to complete.
Note: The steps from 7 to 9 will not need to be completed again – from now on you will be able to export from the Payroll screen without entering your Xero userID and password again.
9. You will be returned to SmartPayroll and you’ll notice that the pay data is greyed out, and the export date is visible.

How to find the information at Xero end

1. Open your Xero online account.
2. Select Accounts from the top toolbar
3. Select Purchases from the drop-down menu
4. Now click on the Draft tab
5. The Draft Accounts Payable screen should look something like this:


6. Click on the SmartPay Online Payroll link to view/edit the invoice.