Xero Phase 2


#1

:warning: UPDATE - check out our brand new Xero integration here: tide.co/blog/xero-integration

What are we releasing?

Our partnership with Xero, which we announced a few months back, has come to fruition in two phases. Phase one launched successfully earlier this year. A big thank you to everyone who helped us test it - your feedback has helped us build something even better. Which brings us to today, and phase two.

We’re delighted to announce an enhanced Xero integration for iOS users. In phase one, as a reminder, we allowed you to link Tide to Xero and automatically sync all your transactions and attachments. With phase two, we go deeper. You’ll be able to map categories from Tide to Xero. And to help you keep on top of your bookkeeping, you’ll also be able to keep your account fully reconciled from Tide.

How does it work?

In order for you to access the new version of the integration, you will need to update your app through Testflight - we’ll be sending instructions out on how to do this.

Then, follow these steps:

  • Log in to the Tide app and select the More tab
  • Tap the Accountancy software section
  • Select Integrate with Xero

You’ll be asked to enter your Xero credentials into a secure log-in screen. This gives Tide permission to share your transaction data with your Xero account.

To begin syncing your transactions with Xero, you will need to connect each of your Tide current accounts to a “bank account” in Xero. And if you don’t already have a Xero “bank account”, you can create one directly from the Tide app. Once your Tide current accounts are connected to your Xero “bank accounts”, Tide will start to share your transaction data with Xero daily.

How does it look in Xero?

In Xero, synced transactions will appear in the “Account transactions” tab. Although this makes it harder for you to reconcile your transactions in Xero than if they were in the “Reconcile” tab, we’ve made it easier to keep the account reconciled from Tide.

Reconciling transactions

Tide will automatically reconcile transactions in Xero if they are (i) cleared, (ii) categorised and (iii) belong to a Tide category that is mapped with a Xero category.

Mapping your Tide and Xero categories ensure that we push your transactions to the right category in Xero, making it easier for you to produce your management reports. You can do this by tapping the “Categories” button and selecting the Xero category dropdown.
If a transaction category in Tide doesn’t map to any Xero category, we will automatically assign the transaction to “General Expenses". The transaction will remain unreconciled until you map the category.

Currently, Xero’s API doesn’t allow us to automatically reconcile transfers between your Tide accounts. You will therefore need to manually reconcile these transfers. You can do this in your Xero dashboard by selecting the account, going on to the “Account transactions” tab and then selecting the unreconciled transaction. Once you’re in the transaction, simply click on the “Options” button and then “Mark as Reconciled”.

Invoices

We’ve worked hard to make sure your Tide and Xero accounts are connected as well as possible, however there are a few things that don’t work perfectly.

The Tide/Xero integration currently doesn’t allow us to match Tide transactions to invoices raised in Xero (and therefore we can’t mark those invoices as paid). This means that if you manually mark an invoice as paid in Xero, and Tide syncs the transaction, you will have a duplicate transaction in Xero. For the time being, we would suggest manually deleting the synced Tide transaction from Xero. This can be done by selecting the relevant transaction in the “Account transactions” tab and then clicking “Remove and redo”.

We appreciate this isn’t an ideal solution and will be working hard to correct this once we integrate into Xero’s new bank feed API.

Feedback required

We’d love to hear your feedback on this integration and experience. We’ve been focussed on making sure the functionality works well and in the future will focus on improving the user experience. We would therefore love to hear your suggestions on how this could be improved!

If any of your transactions are not syncing the way you expect them to, please get in touch with our Help team via the in-app chat.

Thanks,
The Tide team


#5

Some Feedback on Xero integration.

  1. It has largely worked although it did take about 3 days to finally reconcile most of the transactions.
  2. Thanks for the note about invoices. The workaround works ok, but as you say, is not ideal. If the Tide invoices could deal with VAT, then raising an invoice in Tide would make sense. That said, unless Tide can connect with contacts in Xero (or Google contacts), it will still be a bit harder for regular customers.
  3. One challenge I have is interbank transfers. When I closed my HSBC account as part of migrating to Tide, there was a balance in the HSBC account to transfer in to Tide. Xero does not code or categorise these transactions because the cash balance does not change, it merely moves from one account to another. In Xero, the transaction is marked as reconciled, but in Tide I cannot match the category to the equivalent in Xero.
    4 Categories. I can see that most income and expenditures a category will be in or out. But there are some that go both ways. My example is VAT, where some months I pay HMRC and some months they give me a rebate so my “VAT” category is both in and out. In Tide I now have an in VAT and an out VAT. Fortunately, I have mapped both to the same VAT code in Xero, so it appears to work, but is counter-intuitive. Would it be possible to import categories from Xero so that we can use the same name? Perhaps this is less of an issue for people that have Tide first and then Xero, but for anybody moving their account from another bank to Tide, this is more tricky.
  4. For those of us used to importing transactions into Xero via a Yodlee feed or CSV, the automated reconciliation process appears odd, particularly given that you cannot reconcile in Xero and there can be a lag in transactions syncing. I am sure I will get used to it and come to love the labour saving, but yesterday I was cursing and thinking that I would need to disconnect and manually reconcile. In your instructions, it may be worth pointing this out to new users who have used Xero for a while.
  5. I mentioned via in app messaging the need to be able to delete categories and was advised that this is on the roadmap. Included here for completeness.

I would describe the above as wrinkles rather than issues and note that you have prioritised functionality over usability for this release. I look forward to seeing how well Tide remembers transaction categories in future as I can see this integration may take Xero several steps forward. I used to pay HSBC £5.50 per month, plus £35 per year for the credit card and direct feeds were another £5 per month (which I declined to pay). Tide + Xero looks to offer better functionality than I had before at significantly lower costs. What is not to like about that!


#6

Hi Mark,

Thanks for sharing your feedback with us! It really helps us shape the direction of this integration.

In response to your comments, we’re looking to also start using Xero’s new "bank feed’ API. We hope to deliver this in a way that allows you to benefit from the best parts of Tide’s and Xero’s products.

The “bank feed” API should also give you a better solution to your third point as it will allow us to mark payments made from different company accounts (outside of Tide) as transfers. We’re currently only able to do this in Xero if you’ve transferred funds from one Tide current account to another. I appreciate this isn’t ideal at the moment - In the meantime, I would suggest you delete the Tide transaction and the original HSBC transfer and manually create a new transfer in Xero between the two accounts. This then removes the requirement to categorise the transaction.

Regarding invoices, Tide can currently include VAT on invoices sent out but I appreciate that it currently requires you to create all your contacts again as we only connect to your phone contacts. I’ll take this feedback away as well as that for points 4 & 6 and ensure they get considered when thinking about our categorisation / invoicing features.

Thanks once again for all your feedback and I’m glad you’re starting to benefit from our partnership with Xero!


#7

I am excited about this new release.
However, I’ve been a bit frustrated with getting it all to work.

Currently there is a big difference between my balance in my Tide account and the way it’s shown in Xero.
That’s all due to the issue of Xero not showing certain items as reconciled (because the categories weren’t matching up).
So, with this new version, does it reconcile older items? i.e. do the categories of older items match up?

But that brings me on to this… categories in Tide make perfect sense. But they are not called categories in Xero. I think they’re called “accounts” - which I find very confusing. And categories/accounts don’t appear in the bank statements or account transaction pages, and I can’t find out how to check that each transaction has the correct category/account associated and then reconcile each one.

Finally, how often does Tide sync with Xero? Can I force a sync? And how often does it sync the categories?

I really want to sort this out as soon as possible!


#8

Hi Ian,

The new version of the app should help with this. If you go into the “Accountancy software” section of the app you should see a button at the top of the page called “Categories”. Here is where you will be able to match Tide categories to Xero “accounts”.

Once you’ve matched all the categories, Tide will be able to reconcile your older transactions bringing your Tide and Xero balance in line.

You currently can’t force a manual sync but we automatically sync with Xero every night. This will sync both the categories, transactions and attachments. Hopefully this helps but let me know if you have any more questions.


#9

Thanks, Youssef! Didn’t quite expect such a prompt response.

I have to say that the UI of Tide is beautiful and so intuitive. I also want to say how impressed I am by the QR code login. Very secure, and reminds me of a system that Steve Gibson of the Security Now podcast has been developing. Very cool!

I think part of my confusion is the wording to match Tide categories with Xero categories. I wish Xero called them “categories” instead of “accounts”. It’s easier to understand. But for clarity, perhaps you can use the word “accounts” in the UI for category matching for Xero.

Thanks for clarifying that it will reconcile older transactions. So far, it hasn’t done so, but I’ll have another look and hopefully, I can sort it out.


#10

Where on earth is this Toolbox button???!!! its driving me mad here


#11

Hi @pixelpush, sorry to hear this. Could you please specify whether you are on Tide Preview? The toolbox tab is located in the bottom navigation bar for Members on Tide Preview. However, Members, who do not have access to Tide Preview, will not see the toolbox bar as this was removed in our recent redesign.


#12

I have started a new company, new bank account with Tide and new Xero account. Having used Xero for the last three years then starting again with Tide, I am excited by the integration, once it’s all working I am hoping to save a lot of time.
Problems I’m having:

  1. The invoice workaround, I understand this, but Tide will create another contact when the payment sync’s if the payee does not match the contact in Xero. Could you maybe map payee to contact in Xero here?
  2. I use stripe to collect payments from invoices sent out from Xero. I charge 1.4% surcharge. Stripe will mark the invoice paid in Xero. The money arrives in my tide account seven days later. I now have a duplicate payment in Xero. How do I deal with this in Xero?
  3. I am confused by transfers between different Tide accounts, how do I get them to show up in Xero as a transfer? Do they need to be categorised in Tide? As a Transfer? What do I map this to in Xero?

Can I delete everything in Xero bank account and re-sync from the beginning again? (Only a couple of weeks worth of info)

Thanks


#13

Hi @Gratefulgul - thanks for your feedback. We will definitely take this on board and try to make these improvements for you. Some more specific responses to your feedback is below.

  1. I’ll look into this and see what we can do.

  2. Where an invoice already exists in Xero, I would suggest you manually delete the Tide transaction that also gets created. While this isn’t ideal it ensure that you don’t have duplicate payments. We’re currently talking to Xero about how best to match Tide transactions directly to invoices in Xero.

  3. Tide transfers will automatically show up in Xero as a “Transfer” if (a) both accounts exist in Xero at the point the transactions are synced, and (b) the transactions were made after we introduced instant Tide payments between Tide accounts (was previously done via Faster Payments). The latter shouldn’t affect you if you only have a few weeks worth of info.

Feel free to reach out directly via our in-app chat if you feel that neither of my points on transfers should impact your account and I can look at it in more detail.


#14

This all sounds great but I have a question about something very basic, yet essential - VAT on purchase invoices.

How is this dealt with (and fed into Xero)?

Obviously the VAT on purchases needs to be split-out (in Xero) in order to ensure that the maximum possible amount is deducted from the company’s VAT liability.

Thanks


#15

Until the transactions appear on the Reconcile tab, the integration is next to pointless for most businesses. 90% of my transactions need to map to an invoice - either sales or purchases and I can see no way of doing this adequately. I guess I’ll need to de-link and continue to use csv downloads. Which is a shame as I had high hopes.


#16

Is there any development at all on Andriod for this. I have Tide Preview but nothing seems to be coming for android?? Seems odd to be one phase 2 for iOS and nothing for android - hope we don’t have apple fanboys and fangirls at Tide! :grinning:


#17

Hi @customerinteract,

Thanks for posting on community. Sorry for the wait but rest assured that our team is working on it! We will give you an update as soon as possible.

Thanks for your patience and support :slight_smile:


#18

Hello, I recently setup Tide integration and am having the following problem:

  1. I created an invoice on Xero and sent it to my client.
  2. My client paid the invoice.
  3. Xero received the transaction from Tide and marked it as reconciled under ‘Account transactions’, however the original invoice I created on Xero was still marked as unpaid.
  4. When I marked the invoice I created on Xero as paid, it created a duplicate payment.

How do I associate the invoice I created on Xero with the payment marked as reconciled? Why was the transaction from Tide marked as ‘reconciled’ when it wasn’t?

Thanks


#19

Hi @eagardiner, thanks for your question!

We are yet to integrate with Xero’s invoices. This means if you use Xero to send or pay invoices you will get duplicate transactions once Tide shares the actual payment. For the time being we would suggest manually deleting the duplicate Tide payment in Xero.

This can be done by going in to the “Account transactions” tab in Xero, selecting the transaction and then clicking “Remove and redo”.

I hope this helps answer your question. Do get in touch should you require further help :slight_smile:


#20

This integration is terrible. I am an accountant and you are creating far more work for me rather than the less I expected.

I look forward to when your items can appear in the Reconcile Tab and you can handle bank transfers.

Until then I recommend that everyone turns off the automatic reconciliation as it is creating errors in their accounts.
Things are getting double counted, it is so much more work to go in and mark items as reconciled rather than matching through the reconcile tab.

As for Bank Transfers, I have a client who transfers money from his main Tide account to two other Tide accounts for Corporation Tax and VAT. They leave the main account from the Corporation Tax or VAT category (and hence are posted to the corresponding code in Xero) and turn up in the other Tide account in the General Expenses category rather than netting out. So even more work for me to go and move everything back.

Due to all of this, I can’t see how the integration benefits anyone as it just seems to create more work. Happy to hear from users how they have managed to minimise this or what the benefit is.


#21

Hi Gillian,

Thanks for taking the time to share your feedback with us.

As my colleague Youssef said above, we’re looking to start using Xero’s new bank feed API. We hope to deliver this in a way that allows you to benefit from the best parts of Tide’s and Xero’s products :slight_smile:


#22

What is the expected timeline?


#23

Hi Gillian,

We are working on it with Xero and we will start using it as soon as they open their bank feed API to us.