Setting up your Xero account is the most important step in making sure that everything will be where it should be. Due to the nature of the integration, and the nature of reconciling, you will want to make sure that you have the appropriate sales and payments accounts set up before starting the integration. This article will cover two main things:

Setting up Xero for Use With Cliniko

☝️ Note: This will be the first step, before anything else—once you've done this, then you can move forward with connecting Cliniko and Xero!

Clearing Accounts for Payments

We push across the payments from Cliniko to Xero on a one-by-one basis. This means that you'll want to make sure that you have a "clearing account" set up for each payment type that you are expecting deposits from. Having a clearing account is integral if you want to reconcile your payments documented in Cliniko against your bank feed in Xero. As an example, you might want a clearing account for HICAPS, EFTPOS, cash deposits, your online payment provider, and direct deposit. Here's how to set up a new account in Xero, for your new clearing accounts.

First, log into your Xero organisation:

Head to Settings, and then Chart of Accounts:

Click Add Account:

Select Current Asset in the Account Type drop-down menu:

Select a unique code (we suggest something between 611 and 619, for ease of reference):

Enter a name for your clearing account (e.g. Clearing Account - EFTPOS):

Enter a short description, if you like (this description will help your bookkeeper or accountant to understand your use of this account):

Select "BAS Excluded" in the Tax field:

Tick "Enable payments to this account":

Hit Save to finish creating the account:

☝️ Note: You will need to follow those steps for each clearing account you want to create.

Sales Accounts for Revenue

Xero helpfully already has a sales account set up, as code number 200. That one will be enough in most cases! 

However, if you have invoice items and products that do not have GST charged on them, then you will have to set up a secondary sales account for GST-free sales. Here's the steps to do so:

In Xero, head to Settings, and then Chart Of Accounts:

Click Add Account:

Select Revenue in the Account Type drop down bar:

Select a unique code (we suggest something near 200):

Enter a Name for your sales account (e.g. Sales - Non-Taxable):

Enter a short description:

Select GST Free Income or BAS Excluded in the Tax field, depending on what is appropriate for your business:

OR

Hit Save to finish creating the account:

That should be all you need to do for your sales accounts to be ready for your reporting! However, you can take it further: you could choose to create a sales account for your products, or create a sales account for each modality within your Cliniko.

Connecting your Bank Account to Xero

Xero has some great support articles on this one, and it's pretty straightforward! Here's an article from their support site on how to connect a bank feed.

With all of the above in place, it's now time to connect Cliniko and Xero together—head over here to learn how!

Link Cliniko Up With Your Xero Settings

☝️ Note: This portion of the tutorial requires that you first integrate Cliniko with Xero. Once that's done, follow the steps below!

Connecting your Payment Types to your Clearing Accounts

After you've connected Xero and Cliniko together, there's still some work to be completed before you can start using the integration. Firstly, you'll need to make sure your different payment types are linked to the right clearing accounts you've set up in Xero. 

Head to Settings, and then Payment types:

Click on a payment type (e.g. EFTPOS) and select the relevant clearing account from the drop-down menu under Xero account for payments:

Click the Update payment type button, and you'll be set!

You'll need to repeat this process for all payment types that you want connected to their relevant clearing accounts.

Connecting Billable Items to Your Sales Accounts

Setting up your defaults may be all that you need to do for your billable items. You would have set up your default account for sales when completing the actual integration between Cliniko and Xero. However, if you need to drill down further (e.g. for non-taxable services or items), here's how!

Head to Settings, and then Billable items:

Click on a billable item and then select the appropriate Xero account code from the drop-down menu:

Click Update billable item, and you're all done!

Connecting Products to Your Sales Accounts

The same process from the billable item steps above will apply to any products you would like to push anywhere other than your default sales account. 

Head to Products, and click on the product you wish to work with. Edit the product, and select the appropriate Xero account code in the drop-down menu:

Hit the Update product button, and that's it! 🙌

Having the right set up for your sales accounts is integral to having an accurate Business Activity Statement in Xero. If you set up your default sales account, and drill down where you need to, correctly, then you'll be all set up and ready to use Cliniko and Xero together!

Reconciling is a tricky business. But with Cliniko and Xero, we make things easy. Follow this link to find out how you can use this set up to reconcile correctly.

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