Amazon to Xero: How to Connect Your Accounts and Save Hours on Bookkeeping

Why Amazon Sellers Struggle With Bookkeeping

Selling on Amazon can feel exciting, especially when orders are coming in every day and your sales notifications never stop. You might enjoy the buzz of watching your products move, but the real challenge begins when it’s time to keep track of the money.

Amazon sends payouts in batches instead of per order. Before that money reaches you, they take out various fees, including selling charges, advertising costs, and fulfilment fees. Refunds get mixed in with sales. Taxes are hidden inside detailed reports that are not easy to read. If you’re entering all this into your accounts manually, it can take hours every single week.

This is where amazon xero integration can make a big difference. By linking your Amazon account directly to Xero, the data flows in automatically. You no longer have to type out every figure yourself, and the numbers arrive neatly organised, ready for you to check and approve. That means less time wrestling with spreadsheets and more time focusing on growing your sales.

What “Connecting Amazon to Xero” Really Means

When you connect Amazon to Xero, you’re setting up a secure link that allows the two systems to share information. Amazon sends details of your sales, refunds, fees, and tax directly into Xero without you having to export or copy anything manually.

This connection works through a third-party app. Popular choices include A2X, Link My Books, and Webgility. These tools collect your Amazon payout data, break it down into clear categories, and then push it into Xero as well-structured transactions. You can then match these entries against your bank deposits for quick, accurate reconciliation.

The benefit is simple: instead of searching through Amazon reports or guessing if your books are correct, you can open Xero and see your sales figures, expenses, and profit all in one place. The result is cleaner accounts, faster bookkeeping, and better visibility over your business finances.

Main Benefits of Amazon Xero Integration

If you sell on Amazon, your time is better spent finding products, managing stock, and serving customers—not chasing numbers in spreadsheets. That’s why amazon xero integration is more than just a tech upgrade; it’s a practical step that saves you time and reduces stress.

Here’s what you gain:

• Hours back in your week – Once the connection is set up, your Amazon sales, fees, and refunds appear in Xero automatically. No more late nights entering data by hand.
  
• Cleaner, more accurate accounts – Automatic imports reduce typing errors, misplaced figures, or missed transactions. You see the real numbers, not a guess.
  
• Better tax tracking – VAT, GST, or sales tax figures can be pulled into Xero alongside your sales, so you’re ready for returns and filings.
  
• Clear business insights – With all sales and expenses in Xero, your reports tell you which products are profitable and which are costing you money.
  

When your accounts are accurate and up to date, you can make better business decisions. You also free yourself from the pressure of last-minute accounting work.

Choosing the Best Way to Connect Amazon to Xero

There’s more than one way to connect Amazon to Xero. The right option depends on your sales volume, your budget, and how much control you want over the data.

Here are four popular tools:

1. A2X – Reliable and well-known in the eCommerce world. It breaks down Amazon payouts into clear journal entries that match exactly with your bank deposits. Best for sellers who need detailed, accurate records.
   
2. Link My Books – Simple to set up and very affordable. It’s a great choice for small-to-medium sellers who want clean reports without too much complexity.
   
3. Webgility – Offers more features, including real-time syncing and inventory tracking. A good fit for sellers with multiple sales channels.
   
4. PayTraQer – Focuses on speed and ease of use. It’s popular with sellers who want to get started quickly and don’t need advanced reporting.
   

The key is to choose a tool that matches the way you run your business. If you only sell on Amazon, a simpler app might be perfect. If you sell across multiple platforms, you may need one with more advanced features.

Step-by-Step Setup Guide: Amazon to Xero

Setting up amazon xero integration is straightforward if you follow the right steps. Here’s a simple guide to get started:

1. Log in to Xero – Make sure you have an active subscription and access to the account you want to link.
   
2. Log in to Amazon Seller Central – Check that you have permission to connect third-party apps.
   
3. Pick an integration tool – Choose one from the list above and create an account.
   
4. Connect your accounts – Follow the prompts to securely link both Amazon and Xero.
   
5. Map your accounts – Decide where sales, fees, tax, and refunds should go in your Xero chart of accounts.
   
6. Test the connection – Pull in a single payout to confirm everything is correct.
   
7. Import all past data – If your tool allows it, bring in older payouts so your records are complete.
   

Once this setup is done, your Amazon sales will flow into Xero automatically. You’ll just need to check in regularly to approve and reconcile the entries.

Common Mistakes When Connecting Amazon to Xero

Even with a good integration tool, mistakes can happen. Most of them come from rushing the setup or not checking the details. Knowing the common traps can save you a lot of time later.

• Wrong account mapping – If your sales, fees, and taxes are linked to the wrong Xero accounts, your reports won’t make sense. Always double-check the mapping before importing large batches of data.
  
• Forgetting currency conversions – If you sell in multiple currencies, you need to make sure your integration tool handles conversions correctly. Otherwise, your numbers may be off.
  
• Ignoring refunds and reimbursements – Amazon often processes these separately from sales. If they aren’t linked properly, your income could be overstated.
  
• Not reconciling payouts regularly – Even with automation, you still need to match transactions in Xero with bank deposits. This ensures everything is correct and up to date.
  

Catching these mistakes early prevents messy accounts and saves you from bigger problems during tax season.

How to Keep Your Amazon and Xero Data Clean

Automation is a big help, but your books still need regular attention. The cleaner your records are, the easier it is to make smart decisions about your business.

• Reconcile monthly – Set aside time each month to match your Amazon settlements with your Xero bank feed.
  
• Review tax settings – Make sure VAT, GST, or sales tax is being recorded correctly for each region you sell in.
  
• Check inventory – If you sell physical products, confirm that your stock levels in Amazon match your inventory records in Xero or your chosen add-on.
  
• Backup settings before changes – Before switching integration tools or updating account mapping, save a copy of your current setup. This makes it easier to undo mistakes.
  

By staying on top of these small checks, you avoid bigger clean-up jobs later. It also means your reports are always accurate when you need them.

Real Seller Example

To see the difference amazon xero integration can make, let’s look at a real example.

A small UK-based Amazon seller was spending eight hours a week entering sales data into spreadsheets. Every payout from Amazon needed to be broken down manually, and refunds were often missed. At tax time, their accountant would spend hours fixing mistakes, which added to the cost.

They decided to connect Amazon to Xero using A2X. Within two days, all their past settlements for the year were in Xero, correctly split into sales, fees, and tax. Bank reconciliation dropped from hours to minutes.

The seller now spends less than one hour a week on bookkeeping. Their accountant has accurate records year-round, and tax filing is straightforward. The time saved has been put into launching new products and increasing ad campaigns.

Tips to Get the Most from Your Amazon Xero Integration

Connecting Amazon to Xero is the first step, but you can get even more value by using the features in smart ways.

• Use bank feeds – If your business bank account is linked to Xero, you can match Amazon payouts to bank transactions in seconds.
  
• Track product profitability – Add product-level tracking in Xero or use an add-on that links with your integration tool. This shows which products give the best returns.
  
• Set up alerts – Some integration apps let you flag large refunds or unusual fees. These alerts help you spot problems before they grow.
  
• Review reports monthly – Profit and loss, cash flow, and balance sheet reports can all guide better decisions when they are based on accurate data.
  
• Combine with inventory tracking – If you use Amazon FBA, you can add inventory apps that sync with Xero to keep stock records up to date.
  

Small changes like these make your integration more than just a time-saver—they turn it into a tool for smarter business planning.

Final Checklist for a Smooth Connection

Before you rely fully on amazon xero integration, make sure everything is set up correctly. Here’s a quick checklist:

• ✅ Accounts are linked between Amazon and Xero.
  
• ✅ Sales, fees, and refunds are mapped to the correct accounts.
  
• ✅ Tax rates are applied correctly for each selling region.
  
• ✅ Currency conversion settings are correct for international sales.
  
• ✅ Bank feeds are active in Xero and match your payouts.
  
• ✅ Past data has been imported for complete records.
  
• ✅ Regular reconciliation is part of your routine.
  

Ticking all these boxes will give you confidence that your accounts are accurate and ready for tax time.

Conclusion

Selling on Amazon comes with enough challenges. Bookkeeping doesn’t need to be one of them. By setting up amazon xero integration, you remove hours of manual work, reduce the risk of errors, and get clear financial reports whenever you need them.

At eSeller Accountant, we help Amazon sellers set up and manage their Xero connections the right way from day one. Whether you’re just starting out or managing thousands of orders each month, we can make sure your accounts are accurate, up to date, and ready for growth.

Need help connecting Amazon to Xero? Get in touch with us today and let’s set up your system so you can focus on what matters selling more and growing your business.