LedgerBuddy and Xero
What LedgerBuddy reads from your clients’ Xero files, what it can write back, and how to disconnect. Plain English, no surprises.
On this page
- What flows between Xero and LedgerBuddy
- The Xero permissions we ask for
- Getting started: connecting a client file
- How to disconnect, and what happens next
- Frequently asked questions
What flows between Xero and LedgerBuddy
| From Xero into LedgerBuddy | From LedgerBuddy into Xero (only on approval, where enabled) |
|---|---|
|
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LedgerBuddy reads from Xero when someone in your practice runs a scan or reviews a receipt. Automatic background scans are switched off during the beta. Nothing is written to Xero automatically: each write follows a person’s approval, and LedgerBuddy records it as done only after Xero confirms it.
Uploaded receipts and Xero details are handled as described in our privacy policy and service provider list, including optional AI reading of receipts where your practice has turned it on with the required client authority.
The Xero permissions we ask for
When you connect, Xero asks you to approve these permissions (Xero calls them scopes). This is the complete list.
| Permission | What LedgerBuddy uses it for |
|---|---|
openid | Part of Xero’s standard sign-in set. Identifies the Xero user who approves the connection. LedgerBuddy does not currently store or use these identity details. |
profile | Part of Xero’s standard sign-in set (the approving user’s name). Not currently stored or used by LedgerBuddy. |
email | Part of Xero’s standard sign-in set (the approving user’s email address). Not currently stored or used by LedgerBuddy. |
offline_access | Keeps the connection working between visits, so you don’t have to approve access every time. The connection keys are held on our servers, never in your browser. |
accounting.banktransactions | Reads spend money bank transactions (date, payee, amount, reference, bank account and account code) to find the ones missing a receipt. Where Xero actions are enabled for your practice, and only when a practice user approves each one, it can create a spend money transaction for an approved receipt or change the account code on an existing one (adding a history note). |
accounting.invoices | Reads authorised and paid supplier bills so a receipt can be matched to the right bill. Where enabled, and only on approval, it can create a draft supplier bill. |
accounting.contacts | Reads your contacts so you can choose the right supplier. Where enabled, and only on approval, it can add a new supplier contact you have confirmed. |
accounting.settings.read | Read only. Organisation name, chart of accounts, tax rates and bank accounts, so suggestions use your own accounts and tax rates. |
accounting.attachments | Checks whether a transaction already has a receipt attached. Where enabled, and only on approval, it attaches the approved receipt file to the matching transaction or bill. |
Getting started: connecting a client file
- Sign in to LedgerBuddy and open Settings → Xero connections.
- Choose Connect one organisation. You go to Xero’s own login and approval screen in the same tab. LedgerBuddy never sees your Xero password.
- Pick the organisation and approve. You come back to LedgerBuddy and the organisation’s name appears under Connected organisations. If your Xero login can see several new organisations, LedgerBuddy asks which one you meant rather than guessing.
- Connecting lots of clients? Connect several in a row loops you back to Xero’s organisation picker after each approval.
If LedgerBuddy later needs an extra permission, use Reconnect next to the organisation to approve it.
How to disconnect, and what happens next
From LedgerBuddy: open Settings → Xero connections and choose Disconnect next to the organisation. LedgerBuddy asks Xero to remove the connection, deletes its stored Xero connection keys, cancels any document requests in progress and stops their upload links from working.
From Xero: a Xero user with access to the organisation can remove LedgerBuddy from Xero’s connected apps settings. LedgerBuddy then can’t read from or write to that file until someone reconnects it.
What stays: disconnecting stops access; it doesn’t delete history. The client file’s record in LedgerBuddy, the transactions it already found, uploaded receipts and the audit trail stay in your practice account so your records remain complete, and you can reconnect later. Disconnecting doesn’t change or remove anything in Xero.
Deleting the data: to have a client file’s LedgerBuddy records exported or deleted, email admin@ledgerbuddy.com.au. Deletion follows the process and retention limits in our privacy policy.
Frequently asked questions
Does LedgerBuddy change anything in Xero on its own?
No. Every write to Xero needs a person in your practice to approve it, and writing is only available where it has been switched on for that client file.
What doesn’t LedgerBuddy do?
It doesn’t reconcile bank lines, lodge BAS or tax returns, give tax or accounting advice, touch payroll, or create or change sales invoices. Your practice stays responsible for accounting decisions.
Does LedgerBuddy use Xero data to train AI?
No. Xero data isn’t used to train AI models. Where your practice turns on optional receipt AI, relevant transaction and account details are sent with the receipt for reading and suggestions, as set out in our privacy policy.
What does it cost?
Free during the restricted beta. There are no subscription or usage fees, and no card is needed to apply. If a paid plan is introduced later, we will give your practice at least 30 days’ written notice of the prices before any fee applies, and you can leave before then without charge (Platform Terms clause 8).
Something isn’t working
See Support, or email admin@ledgerbuddy.com.au with the organisation name and what you were doing.