Xero, the New Zealand-based accounting platform, announced last week that its app partner, Amaka, has built an updated integration for Square Payments.
This integration will allow customers to reconcile sales through Square directly in Xero, capture point of sale (POS) transactions, and even accept Square payments through Xero invoices (in Australia, the UK, Ireland, US, and Canada).
Rise in traffic to G2's Payment Processing category
Since the beginning of the pandemic, traffic to G2’s Payment Processing category has increased by 247%, in large part due to the uptick in online shopping as a result of the COVID-19 pandemic.
Consumers want a fast, secure, and reliable payment option, while retailers need to keep up with all transactions and have an easy and accessible source to manage those transactions. Accountants appreciate integrations into their existing platforms as well, as expressed through a review left by Xero user John P.:
“We used Square before Xero integrated and now I couldn't imagine life without it.”
Xero is focusing on three main features:
- Reconciliation: Once a customer receives payment through Square, the payment hits their bank account and automatically appears in their Xero bank feed so it can be reconciled quickly and efficiently. Come month, quarter, or year end, this feature can be valuable to ensure all transactions are accounted for, and categorized to the proper general ledger (GL).
- POS transactions: All POS transactions are captured and can be summarized through daily invoices which include transactions, tips, surcharges, and relevant taxes. Daily updates of POS transactions help to ensure that data is up to date and is easy to reconcile. This also minimizes manual data entry, which can lead to human errors.
- Payments through Xero invoices: One of Xero’s current features is the ability to create and send invoices directly from their platform, and the new integration allows the customer to pay the invoice instantly through Square via credit or debit card. This feature decreases the chance of duplicate invoices being created in either Xero or Square and can improve a business’s cash flow by facilitating the receipt of faster payments.
Xero and Square continue their partnership
The original Square integration for Xero was introduced in 2014, and much like their new integration, allowed Square customers to link their Square and Xero accounts to pull past sales data and daily transaction data into Xero's GL.
This newest integration has finetuned the original functionality while including the additional features mentioned above. This partnership between the two platforms is mutually beneficial because it allows Xero to continue to build out and expand its international presence while giving Square the opportunity to reach more merchants and offer seamless integrations to grow their footprint.
The current Square integration will be fully phased out by November 30, 2021, and it is advised that all current users switch to the new integration before this date.