Xero Integration: Timesheets and Invoicing

Introduction

This tutorial provides a step-by-step guide on integrating Xero with ShiftCare for managing timesheets and invoicing. It is designed to help aged care and disability service providers streamline their payroll processes by ensuring accurate data transfer between the two platforms.

Step 1: Set Up ShiftCare for Xero Integration

1. Navigate to your account settings in ShiftCare.
2. Scroll down to the payroll software section and select Xero from the dropdown menu.
3. Review the scheduler settings to align the Pay Run timing with your payroll cycles (weekly or fortnightly).
4. Ensure that the first day of your pay period is correctly set to match your payroll reporting.

Step 2: Configure Xero Payroll Settings

1. In Xero, go to Payroll Settings and configure pay items for your staff.
   • Create pay items such as Ordinary Hours, Afternoon Hours, Night Hours, etc.
   • Avoid setting a unit rate if your staff have different pay rates; instead, set individual rates under each employee’s pay template.
2. For allowances, set rates only if they are the same for all employees, otherwise leave it blank to manage them individually.

Step 3: Connect Staff to Xero

1. In ShiftCare, go to your staff list and access each staff member's profile.
2. In the payroll settings section, click “Connect to Xero.”
3. Ensure the email address in ShiftCare matches the one in Xero for a successful connection.

Step 4: Sync Pay Items and Groups

1. In ShiftCare, go to Account and then Pay Items and Pay Groups.
2. Sync the pay items from Xero by clicking on "Sync Xero Pay Items."
3. Match the pay items in ShiftCare to the pay groups you have set up.

Step 5: Manage Allowances

1. Ensure allowances are set up correctly in Xero as unit types.
2. In ShiftCare, navigate to Allowances and link them to the corresponding pay items.
3. For allowances like Mileage, ensure they are categorized as rate per unit with hours as the unit type.

Step 6: Approve and Sync Timesheets

1. Access the Timesheet report in ShiftCare and select the correct date range.
2. Approve all shifts before syncing to Xero to ensure accurate payroll processing.
3. Sync the timesheets by selecting the approved entries and confirming the sync.

Step 7: Handle Errors During Sync

1. If a timesheet sync fails, check for mismatched email addresses or unconnected staff.
2. Use the three-dot menu to sync individual employees that encountered errors.

Step 8: Generate Invoices in ShiftCare

1. Go to the Invoices section and generate invoices based on the shift dates.
2. Adjust the due date if necessary before exporting to Xero.

Step 9: Import Invoices to Xero

1. Navigate to the Invoices list in ShiftCare and filter for recently generated invoices.
2. Click on the export button to download the invoices.
3. In Xero, go to Business, then Invoices, and select the import option to upload the file.

Conclusion

Integrating Xero with ShiftCare for timesheets and invoicing can significantly improve efficiency in managing payroll. By following the steps outlined above, you can ensure accurate data transfer, streamline payroll processes, and maintain compliance with award requirements. For ongoing management, consider regularly reviewing your settings and ensuring staff profiles are correctly linked. If you encounter challenges, consulting with an accountant or bookkeeper can provide additional support.