The process of syncing transactions to Xero has required you to build the final bricks of the bridge between your on-chain transactions and your main ledger.
Classifying transactions ensures the data pushed is easily identified and categorized, but, the real game-changer is the chart of accounts mapping! Which pushes the right debit/credit entries to the right accounts in Xero!
For a transaction to successfully sync to Xero it needs to meet certain requirements:
Default accounts have been mapped (Gains/Losses & Fees)
The transaction is balanced (Asset account & PnL account mapped)
For trades, both assets are mapped to asset accounts
There are no missing prices (if there is let us know!)
In order for the transactions to make sense in your main-ledger you want to have the following details attached to the transaction:
Appropriate name of your source (wallet/exchange)
Transactions Labelled (and notes added where applicable)
Here's how the entires will look in Xero:
Steps to sync transactions
The first thing you need to do before syncing transactions is check whether you have a warning next to your workspace saying you need to Update the Cost Basis!
You can do this by clicking on the Update cost basis button on the transactions page.
The next step is to filter for all the transactions that you want to sync to Xero, this is really up to you, what is the most common practice is filtering by:
Syncing all transactions with a particular Label (i.e. Salary)
Syncing all transactions within a particular time frame
Let's use the example of filtering by Label and syncing transactions:
Step 1: Double-check that the transactions are Balanced
Do this by clicking on random transactions to check if the automated Chart of Accounts mapping has mapped the correct accounts to the transactions.
Step 2: Select the transactions you want to sync
Step 3: Click Synchronise 'X' transactions with Xero
Congratulations, all green ticks mean success! ✅
Locating these transactions in Xero
Log-in to Xero
Under the Accounting tab click on Reports
Once on the Reports page scroll down to the Accounting sub-section and click on Journal Reports.
Click on Manual Journals, then click on Drafts, this is the location of the synced transactions that you have pushed from your sub-ledger to main-ledger.