Connecting to Xero allows you to simplify the tracking and recovery of your retention money.

In this article we walk you through:

Once you've successfully linked your Xero account to Retention Track you will be able to add your Xero organisation to your account. This can be completed by selecting "Connect New Xero Organisation" in the "Your Profile" page. This will redirect you to Xero and prompt you to allow access to one of your Xero organisations.

Follow the steps from Xero and you will be redirected back to Retention Track. The connected organisation will appear under the "Xero Account Connection" section of your profile page.

Unlike Retention Track, Xero operates using a single operating entity model and as a result you must link your connected Xero organisation to a company within your Retention Track workspace.

Navigate to the company you wish to link to Xero, scroll down to the Integrations section and select "Link to Xero Organisation" to begin the linking process.

The linking wizard walks you through six steps. A progress bar at the top of the page shows your position throughout the flow.

Choose the Xero organisation you want to link with your company. If you do not see the organisation you expect, ensure that you allowed Retention Track access to it in Xero.

Select the retention debtors account from your Xero chart of accounts. This is the asset account where retention withheld from your invoices will be tracked. If you don't already have one, click "Create Retention Debtors Account" and Retention Track will create the account for you in Xero (default code 699, name "Retention Debtors").

Select the retention defects liability account from your Xero chart of accounts. This liability account is used to track the portion of retention held against the defects liability period. If you don't already have one, click "Create Retention Defect Liabilities Account" and Retention Track will create it for you (default code 899, name "Retention Defects Liability").

Select the sales (revenue) account from your Xero chart of accounts. This account is used as the default revenue account when creating invoices and credit notes from Retention Track.

Select the cost of goods sold account from your Xero chart of accounts. This account is used as the offset account when posting manual journals that record retention being used against defects.

Review the summary of your selections — the Xero organisation, retention debtors account, retention defects liability account, sales account and cost of goods sold account — then select "Connect Company to Xero" to complete the linking process.

Once the linking process has been successfully completed, Retention Track will allow you to add invoices directly from Xero as well as monitor your outstanding retention balances.

After linking a company to Xero, UK workspaces can configure which Xero tax types map to reverse charge transactions. From the company page, scroll to the Xero integration card and open "View Tax Type Mappings", then select "Configure".

You can select multiple Xero tax types per purpose:

Tick the tax types that apply for each purpose and select "Save Mappings". These mappings tell Retention Track which line items on a Xero invoice should be treated as reverse charge when calculating retention and creating new documents.

Some Xero account types were added to the linking wizard after the original release. If a company was linked to Xero before these account types existed, the company's Xero integration card will display amber warning banners prompting you to complete the missing links.

Each catch-up flow opens a standalone page that asks you to select (or create) a single account, then returns you to the company page when done.

If the company has no sales account linked you will see an amber banner reading "No sales account linked. A sales account is required for creating invoices and credit notes." Select "Link Sales Account" to open the catch-up page, choose a revenue account from your Xero chart of accounts, and select "Link Sales Account" to save.

If the company has no cost of goods sold account linked you will see an amber banner reading "No cost of goods sold account linked. A COGS account is required for creating invoices and credit notes." Select "Link COGS Account" to open the catch-up page, choose a cost of goods sold account from your Xero chart of accounts, and select "Link COGS Account" to save.

Companies onboarded before the retention defects liability account became a required field can link or create one from the dedicated catch-up page. As with the wizard, you can either pick an existing liability account from your Xero chart of accounts or have Retention Track create one for you (default code 899, name "Retention Defect Liabilities"). Select "Link Account" to save.

To unlink a Xero organisation from a company in Retention Track navigate back to the company page and select "Unlink".

You are able to disconnect Retention Track's access to any of your Xero organisations through your profile page. Select "Disconnect" under the "Xero Account Connection" section and follow the steps.