Connect your portfolio to Xero
The Xero Synchronisation feature allows you to connect your Sharesight portfolio to your Xero account. This allows you to synchronise details of share purchases, sales, and dividends to Xero which can be reconciled against your bank statement and included in your financial accounts.
These instructions assume that you have a Xero subscription. If you’re on a paid Sharesight subscription, you may add Xero Cashbook as an add-on from the Sharesight Plans & Billing page. Otherwise, you may sign up directly to one of Xero’s retail subscription options.
In your Xero chart of accounts you need to have an account set up for each of the following items:
- Dividends Received (Revenue Account)
- Realised Gains/Losses (Revenue Account)
- Tax Credits (Current Asset)
- DRP Balance (Current Asset)
- Share Market Investments (Asset)
- Brokerage (Expense Account, Optional: brokerage can be reconciled to your Share market investments asset account if you wish to include brokerage as part of the cost base of the asset)
1 – Click ‘Integrations’tab.
2 – Click ‘Xero settings’
3 – Click the ‘Connect’ button. This will direct you to log into you Xero account and authorise access to Sharesight. You’ll be redirected back to Sharesight when you’re finished. If you don’t already have a Xero cashbook select ‘Xero Cashbook add-on’.
4 – Map the following items to the appropriate account from your Xero organisation’s chart of accounts:
- Dividends => Revenue
- Realised Gains / Losses => Revenue
- Tax Credits => Current Asset
- DRP Balance => Current Asset
- Share Market Investments => Asset
- Brokerage => Expense
The following additional settings are available:
- Synchronise using invoices – we recommend this method in most instances.
- Synchronise using bank transactions – choose this if you’re on the Xero Starter plan since there’s a limit to how many invoices you may send.
- Send invoices in ‘draft’ status – Draft invoice require an additional approval step in Xero before they are included in your accounts.
- Send invoices in unconverted currency – Sharesight won’t convert foreign currency transactions where the currency is supported by your Xero Organisation (this option is only available if your Xero account supports multi-currency).
- Synchronise trades received via Sharesight Connect – Trades received via Sharesight Connect will be automatically Synchronised to Xero.
- Synchronise trades received by Contract note emails – Trades created by the Trade Confirmation Emails function will be automatically Synchronised to Xero.
- Synchronise corporate actions automatically – System generated dividends and Return of Capital payments will be automatically Synchronised to Xero on their paid date.
Once Xero synchronisation is configured, a tick box will appear on the add and edit screens for trades and dividends. To send the trade or dividend record to Xero, simply select the tick box and then click the ‘Save’ button.
When you edit a trade or dividend in Sharesight, you’ll see an option to synchronise any modifications to Xero (you can disable this option by unchecking the box if you don’t want to re-synchronise the data). If the transaction has been reconciled in Xero, the option to synchronise to Xero will be disabled as it’s not possible to update a transaction that has been reconciled.
A synchronisation icon provides live feedback of the synchronisation status:
= Synchronisation in progress
= Synchronisation completed successfully
= Synchronisation failed (hover over the icon to view the error message)
- How do I change the chart of accounts?
- How many bank feeds can I set up in my Xero account?
- Does Xero support multi-currency?
- Does Sharesight send converted data to Xero?
- How many bank (cash) accounts can I create in Xero and import to Sharesight?
- How do I create invoices using the expected or paid date for dividends?
- How much does Xero Cashbook cost if purchased via Sharesight?
- How do I delete my Xero Cashbook?
- Why do I see duplicates in the cash account I imported from Xero?
Xero provides an out-of-the box chart of accounts that is not tailored specifically to investors. To change the chart of accounts in Xero, please follow the instructions below. Before you do so, download the investor chart of accounts: Investor Chart of Accounts
1 – Go to Settings > Chart of Accounts
2 – Choose Import
3 – Select Xero and No/ I Don’t know
4 – Click ‘Browse’ to upload your chart of accounts
5 – Click ‘Confirm’
There is no limit to the amount of bank feeds you can setup within your Xero account. Learn more about setting up your bank feeds in Xero.
Note: You can choose to send trade data (buys & sells) and dividend (distribution) data to the same or separate bank accounts in Xero.
Xero Cashbook does not support multi-currency, although the Xero Premium plan does. If you require multi-currency for your Xero account, please visit the Xero website or contact your accountant or financial adviser.
Sharesight sends raw unconverted data to Xero. For foreign currency, Sharesight will provided unconverted (raw) data and Xero will convert it using their conversion rates.
Note: if you are on the Xero Starter plan you might want to choose the bank transaction option as their invoice functionality it limited.
An effective way to track cash management accounts, cash investments, term deposits, and broker-linked cash (settlement) accounts is to add these to your Xero account and import them into Sharesight. This will result in your cash holdings being tracked inside your Sharesight portfolio. Any type of Xero account offers you unlimited bank account integrations. You will need to import these into Sharesight one at a time. Just go to the drop down menu next to ‘Add Holding’ in your Portfolio > Add Cash Account and start adding.
Note Multi-currency cash accounts are supported by Sharesight. This option is only available if you are on the Xero Premium plan.
The transactions shown in the multi-currency cash account will be displayed in the original currency of the cash account. The total is then converted back to the portfolio currency for inclusion in report totals and displayed in the source currency as well.
For those using the Xero Partner and Small Business version of Xero (non-Cashbook), invoices may be created using the ‘expected date’ or the ‘paid date’ for dividends (distributions). You may modify this setting when mapping Sharesight to Xero.
- If the option is set to the expected date, Sharesight will create an invoice in Xero with an invoice date that matches the expected date.
- If the paid date is used Sharesight will create an invoice in Xero with an invoice date that mates the paid date.
Note: The invoice due date will always match the dividend paid date regardless of choosing expected date or the paid date.
To delete your Xero Cashbook please follow the steps below:
1 – Login to your Sharesight account > Go to Account Settings > Plans and Billing
2 – Scroll down and you will see your Cashbook add on here > click the ‘trashcan’ icon this will remove the add on from your account.
Sometimes duplicates occur in your cash account in your Sharesight portfolio. The reason for this is that the identifying information for a transaction sent from Xero is either exactly the same or very similar. The solution is refreshing your cash account, however, this will lead to any information held for more than one year ago from today to be lost.
Therefore, please ensure you do not have any older transactions in your account than one year ago today. Before you start the instructions below please ensure that you do not have any information in your cash account dating back more than a year ago from today. If you do then contact customer support via the ‘help’ tab in your portfolio rather than following the instructions below.
To flush-out any duplicates, simply follow these steps:
1 - Go into the cash account with the duplicates.
2 – Paste the text ?sync_again=reset to the end of the URL and click the Enter/Return key.
3 - Data is re-loading please be patient.
4 – Check for duplicates in your account if still present contact customer support via the ‘help’ tab in your portfolio.
Sharesight clients who use Xero (any version) can track cash investments for any account that is supported by Xero bank feeds. This means that an up to date and on-going cash balance will be automatically displayed within your Sharesight portfolio(s).
In order for these cash holdings to be reflected in Sharesight, you must first set them up in your Xero account. For more information, see the Xero help page: setting up bank feeds in Xero.
Once you have set up the bank feed in Xero, open the dropdown menu next to Add Holding and select Add Cash Account.
Choose the tab for Xero and click the button Connect to Xero. If you’re not logged into Xero already, you’ll be prompted to do so within Sharesight.
Once finished, you’ll be prompted to select which Xero organisation (account) to utilise.
If you do not see the Xero cashbook or your Xero premium product in the list click ‘connect to another one’ to search for your other Xero product.
Next, you’ll be prompted to select which bank account inside the Xero organisation to integrate with Sharesight and to give the cash holding a name. This name will be used throughout Sharesight to identify the cash investment.
After you click the Create new cash account button, Sharesight will retrieve your transaction history from Xero and display your current balance. It’s important to note that Sharesight will only retrieve cash transactions that have been reconciled in Xero.
This also serves as the cash holding detail page. On this page you can search for cash specific transactions or export the data to Excel or PDF. Back on the Portfolio Overview page, you’ll now see a new section called Cash Accounts, which includes your Xero-linked cash account. This balance will be automatically updated every day. Clicking into this holding will display your transactional history.
Unsettled Trades Adjustment
If you use the Xero-linked cash account for funding trades, you can also use a feature that will automatically account for any portfolio balance discrepancies due to unsettled trades. Since trades appear in Sharesight in a matter of seconds, but the cash is not debited from the funding account for up to three days (T+3 rule), this feature will automatically offset the value of the newly purchased shares with the appropriate amount of cash. This unsettled cash balance will then automatically reverse itself after three days. When this is in effect you’ll notice a new line item under the cash holding titled Unsettled Trades Adjustment.
To toggle this feature on or off, go to the Settings menu within the portfolio and under Basic details tick the box next to ‘Apply cash account accrual adjustment’.
Unsettled Payouts Adjustment
The ‘Apply cash account accrual adjustment’ setting used to create an unsettled trades adjustment also relates to payouts.
When you become entitled to a dividend payment, ie, on the ex date, we display a ‘Cash Accounts Adjustment’ record to reflect this ‘Unpaid Payout’.
On the Performance Report, any payouts with an ex date within the reporting period but with a paid date after the report end date will display as an ‘Unpaid Payouts Adjustment’.
On the Historical Cost Report these ‘Unpaid Payouts’ display as a ‘Cash Accounts Adjustment’.
If you are unsure where these unpaid payouts are coming from, try running the Future Income Report.
Last modified on August 23, 2022 UTC