Overview

Xero MCP is the official open-source Model Context Protocol server built by XeroAPI, launched in March 2025. It bridges the MCP protocol to Xero''s accounting API, enabling AI assistants to handle core accounting tasks including contacts, invoices, quotes, bank transfers, credit notes, and chart of accounts operations through a standardized interface.

Xero is one of the world''s leading cloud accounting platforms, serving over 4 million subscribers across 180+ countries, with particular dominance in the UK, Australia, and New Zealand markets. The MCP server provides OAuth2-authenticated access to Xero''s financial data, allowing AI agents to create invoices from natural language instructions, manage customer contacts with duplicate checking, transfer funds between bank accounts, and query financial structures — all without direct internet calls, using secure API proxies for organizational data.

As an official, open-source server hosted on Xero''s own GitHub organization, this is one of the most trustworthy financial MCP integrations available. However, the critical nature of accounting operations means every AI action has real monetary consequences — from sending invoices that request payment from customers, to bank transfers that move actual funds, to credit note allocations that adjust financial records. This makes Xero MCP one of the highest-priority connectors for AI governance.

Key Features

Invoice Management

Create new invoices, update existing invoices, and create-or-update in a single operation. Support for line items, payment terms, and customer association through natural language AI interactions.

Contact Operations

Retrieve contacts with filtering and paging, create new contacts with duplicate checking, and manage customer/vendor records with properties like name, email, and billing details.

Bank Transfer Operations

Transfer money between bank accounts within Xero — one of the highest-risk financial operations available through any MCP server, requiring strict governance controls.

Quote Management

Create draft quotes and retrieve existing quotes with filtering. Supports the full sales quotation lifecycle from draft to sent.

Credit Note Allocation

Allocate credit notes to specific invoices for financial adjustments. A critical accounting operation that affects receivable balances and customer statements.

Chart of Accounts Access

Retrieve the complete chart of accounts for an organization, providing the financial structure needed for proper account coding and reporting.

Multi-Tenant Authentication

OAuth2-based authentication with support for multiple Xero tenant connections, allowing AI agents to work across different organizations securely.

Capabilities

Xero MCP exposes 11 tools for AI agents. 5 require approval.

4 Read7 Write

Tool	Operation	Risk	Description
`get_connections` Lists active Xero tenant connections for the authenticated user	Read	Low Risk	Lists active Xero tenant connections for the authenticated user
`get_contacts` Retrieves a list of contacts with filtering, paging, or incremental updates	Read	Medium Risk	Retrieves a list of contacts with filtering, paging, or incremental updates
`create_xero_contact` Creates a new contact with duplicate checking and properties (name, email, phone)	Write	Medium Risk	Creates a new contact with duplicate checking and properties (name, email, phone)
`get_quotes` Retrieves a list of sales quotes with filtering and paging	Read	Low Risk	Retrieves a list of sales quotes with filtering and paging
`create_new_quote_draft` Creates a new draft quote with contact and line items	Write	Medium Risk	Creates a new draft quote with contact and line items
`create_invoice`Approval Creates a new invoice for a customer with line items and payment terms	Write	High Risk	Creates a new invoice for a customer with line items and payment terms
`create_or_update_invoice`Approval Creates a new invoice or updates an existing one based on matching criteria	Write	High Risk	Creates a new invoice or updates an existing one based on matching criteria
`update_invoice`Approval Updates an existing invoice (status, details, line items)	Write	High Risk	Updates an existing invoice (status, details, line items)
`allocate_credit_note`Approval Allocates a credit note to a specific invoice for financial adjustment	Write	High Risk	Allocates a credit note to a specific invoice for financial adjustment
`create_bank_transfer`Approval Transfers money between two bank accounts in Xero	Write	High Risk	Transfers money between two bank accounts in Xero
`get_chart_of_accounts` Retrieves the chart of accounts for an organization	Read	Low Risk	Retrieves the chart of accounts for an organization

Use Cases

Strategy-Aligned Use Cases

AI-Assisted Invoice Creation

Create invoices from natural language instructions — "Create invoice for Acme Corp for 10 hours of consulting at $200/hour" — with the AI handling contact lookup, line item creation, and proper account coding.

Financial Data Queries

Enable finance teams to query chart of accounts, retrieve contact lists, and look up invoice status through conversational AI, replacing manual Xero dashboard navigation.

Cross-Tool Invoice Automation

Connect Xero with CRM tools (Salesforce, Zoho CRM) to automatically generate invoices when deals close, pulling customer details and line items from the CRM record.

Regulated Financial Workflows

Implement governance-controlled financial workflows where AI agents can draft invoices and quotes but require human approval before sending to customers or executing bank transfers.

Considerations

Before You Adopt

**Direct Financial Impact — Critical**: Every write operation in Xero affects real financial records. Creating an invoice sends a payment request, bank transfers move actual money, and credit note allocations adjust account balances. Errors have immediate monetary consequences.
**Bank Transfer Risk**: The create_bank_transfer tool moves real funds between accounts. This is among the highest-risk operations in any MCP server and should always require human approval with multi-step verification.
**Invoice Send Risk**: Creating or updating invoices can trigger email notifications to customers. Incorrect amounts, wrong line items, or duplicate invoices damage business relationships and create legal liability.
**Regulatory Compliance**: Xero data is subject to accounting standards (GAAP, IFRS), tax regulations (GST, VAT), and audit requirements across 180+ countries. AI-initiated changes must maintain regulatory compliance.
**Credit Note & Adjustment Risk**: Allocating credit notes to invoices modifies receivable balances and affects financial statements. Incorrect allocations can distort revenue recognition and cash flow reporting.

Stratafy Fit

Integration Potential

5/5

Xero MCP is a critical governance target for Stratafy and one of the highest-value financial connectors in the catalog. As an official, open-source server from Xero''s own API team, it represents the gold standard for financial MCP integrations. Stratafy can enforce multi-step approval for all financial write operations (invoices, transfers, credit notes), restrict bank transfer capabilities to senior finance roles only, implement short-lived permissions for time-bound financial operations, maintain immutable audit trails for regulatory compliance across 180+ countries, and detect compound risks when Xero operations combine with CRM or communication tools. The critical nature of accounting AI governance, combined with Xero''s 4M+ subscriber base, makes this a flagship use case for Stratafy''s platform.