A Comprehensive Guide to Integrating Xero with Cin7 Core
Integrating your Cin7 Core system with Xero can be a strategic move to ensure your financials are as streamlined as your inventory. As you embark on this process, there are several key considerations to keep in mind to ensure a smooth and efficient integration. Let’s delve into these questions and understand their impact on your business.
Setting Up Your Finances
Ensure your bank accounts in Xero have the right nominal codes assigned. This step is fundamental for accurate financial tracking and reporting.
Managing Financial Periods
Using period lock dates in Xero helps prevent changes to your data after reports have been finalised. It’s a safeguard for your financial integrity.
Aligning Your Accounts
The chart of accounts in Xero should be correctly linked to Cin7 Core to ensure that transactions are categorised properly for financial analysis and reporting.
Tracking Your Inventory
If you use ‘Tracked Inventory’ within Xero ensure it is removed when connecting CIN7 Core.
Utilising Categories for Tracking
Xero’s tracking categories can enhance your reporting by allowing you to segment financial data. Ensure they are used effectively in your integration.
Consolidating Invoices
Determine if you need to consolidate invoices for a clearer financial overview. This can simplify customer account management and reporting.
Streamlining Payments
Consider whether consolidating payments will benefit your business, making it easier to track cash flow and financial obligations.
Financial Reporting Needs
Identify the types of financial reports you need from Xero, along with their frequency, to ensure your business meets its reporting obligations and keeps stakeholders informed.
Adhering to Approval Workflows
If your business requires an approval workflow for invoices, configure this within Xero to maintain control over expenditure.
Reconciliation Processes
Plan how reconciliation will be managed now that Cin7 Core is integrated with Xero, ensuring a seamless match between inventory movements and financial transactions.
Handling Non-Inventory Costs
Establish the process for recording non-inventory costs, such as overheads and operational expenses, within your integrated system.
Managing Payments
Decide if payments will be sent from Xero back to Cin7 Core, ensuring a two-way flow of financial information.
Invoice Origination
Determine whether invoices will be sent directly from Xero or Cin7 Core, depending on where the sales data is most accurate.
Dealing with Multiple Currencies
If you’re trading in multiple currencies, ensure both systems are configured for currency conversions and financial reporting accurately.
Pro-forma Invoices
If your business uses pro-forma invoices, make sure this workflow is incorporated into your integrated system for advance payments or quotes.
In conclusion, integrating Xero with Cin7 Core is a powerful way to align your financial and inventory management. By carefully considering these questions, you can ensure that the integration meets the unique needs of your business, enhancing efficiency and providing clear insights into your financial performance.
Frequently Asked Questions About Integrating Cin7 Core with Xero
1. What should I check in Xero before integrating with Cin7 Core?
Before integrating, make sure your bank accounts in Xero have the correct nominal codes assigned. Also, ensure that any tracked inventory is removed to avoid conflicts with Cin7 Core’s system.
2. How do I align my chart of accounts between Cin7 Core and Xero?
To properly align your accounts, link the chart of accounts in Xero to Cin7 Core so transactions are categorized correctly for reporting. This ensures your financials and inventory data stay synchronized.
3. Should I consolidate invoices and payments during integration?
Yes, consolidating invoices and payments can simplify your financial reporting and improve customer account management. It’s a useful step to reduce admin and provide a clearer financial overview.
4. Can Cin7 Core and Xero handle multiple currencies?
Yes, but you need to configure both systems to support multi-currency trading. This ensures accurate currency conversion and reliable financial reporting across international transactions.
5. Where should my invoices originate: Xero or Cin7 Core?
It depends on where your most accurate sales data is managed. Decide whether invoices should be generated in Xero or Cin7 Core based on your workflow to maintain financial accuracy.
