Best Practices for Importing Contacts into Xero

Maintaining an accurate and comprehensive contact list in Xero is essential for efficient invoicing, payment tracking, and financial reporting. Whether you're migrating from another accounting system, importing contacts from your CRM, or consolidating customer and supplier lists, this guide will help you navigate the process smoothly.

Why Contact Management Matters in Xero

Before diving into import methods, it's worth understanding why well-maintained contact records are crucial:

• Accurate Invoicing: Complete contact details ensure invoices reach the right person
• Reporting Clarity: Properly categorized contacts improve sales and expense reporting
• Tax Compliance: Correct tax numbers and settings ensure compliance with tax regulations
• Payment Efficiency: Bank account details streamline payment processes
• Relationship Management: Contact history provides insight into your business relationships

Current Methods for Importing Contacts to Xero

Xero offers several approaches for importing contacts:

Method 1: CSV Import (Xero's Built-in Feature)

The most common approach is using Xero's CSV import feature:

1. In Xero, navigate to Contacts > All Contacts
2. Click the "Import" button
3. Download Xero's CSV template
4. Populate the template with your contact data
5. Upload the completed CSV file
6. Map fields and complete the import

Pros and Cons of CSV Import

Method 2: Third-Party Integration Tools

Several specialized tools can facilitate contact imports:

• SyncHub: Synchronizes contacts between Xero and various CRMs
• OneSaas: Connects Xero with eCommerce platforms and CRMs
• Zapier: Creates automated workflows between Xero and other applications

Method 3: Direct API Integration

For businesses with technical resources, Xero's API offers the most flexible approach:

• Allows for programmatic creation and updating of contacts
• Enables real-time synchronization with other systems
• Supports custom validation and business rules
• Provides detailed error handling and logging

Common Challenges When Importing Contacts

Regardless of the method you choose, several challenges commonly arise during contact imports:

1. Duplicate Contacts

Duplicate contacts can cause confusion and reporting issues. To avoid them:

• Clean your data before import by identifying and merging duplicates
• Establish a standard format for contact names (e.g., legal entity names)
• Use unique identifiers like ABN/TFN numbers when available
• Consider a phased approach to imports to identify duplicates created during the process

2. Incomplete or Inconsistent Data

Contact records often contain gaps or inconsistencies that can cause problems:

• Standardize address formats before import
• Ensure required fields are populated (name, email, etc.)
• Validate email addresses and phone numbers
• Check that tax numbers are in the correct format for your jurisdiction

3. Contact Classification

Proper categorization ensures contacts appear in the right reports and workflows:

• Decide on your customer/supplier/both classification strategy before importing
• Use consistent contact groups for segmentation
• Consider your reporting needs when structuring contact data

4. Custom Fields and Additional Information

Xero has limited support for custom fields, which can be challenging when migrating from more flexible systems:

• Identify which custom fields are truly necessary in Xero
• Use contact groups or notes fields to capture additional information
• Consider maintaining detailed contact information in a CRM that syncs with Xero

Best Practices for Contact Import

Based on our experience helping businesses migrate to Xero, here are our recommended best practices:

1. Prepare Your Data Thoroughly

• Audit your existing contact database for completeness and accuracy
• Standardize formatting for names, addresses, and other fields
• Remove or merge duplicate contacts before import
• Validate essential information like tax numbers and bank details

2. Plan Your Contact Structure

• Define a clear naming convention for organizations and individuals
• Determine your approach for contacts who are both customers and suppliers
• Create a contact group strategy for segmentation and reporting
• Plan how to handle sub-contacts and multiple locations

3. Test Before Full Implementation

• Import a small batch of contacts first to identify issues
• Create test transactions to ensure contacts work as expected
• Verify that reports display contact information correctly
• Adjust your import strategy based on test results

4. Document Your Process

• Create a detailed record of your import methodology
• Document any data transformations or cleanup performed
• Note any contacts that required special handling
• Establish processes for ongoing contact management

The Future of Contact Importing: Automated Solutions

While Xero's native import features work for basic scenarios, businesses increasingly need more sophisticated solutions. Our upcoming contact import feature will address these needs by:

• Intelligent Matching: Automatically identifying and handling potential duplicates
• Data Enrichment: Adding missing information from public sources
• Format Standardization: Ensuring addresses and other fields follow consistent patterns
• Ongoing Synchronization: Keeping contacts updated between systems
• Smart Categorization: Suggesting appropriate contact groups and classifications

Conclusion

Contact management is a critical foundation for effective financial operations in Xero. While the current import options have limitations, with proper planning and attention to detail, you can create a clean, well-structured contact database.

For businesses looking to streamline this process further, keep an eye on our upcoming automated contact import feature, which will provide a seamless way to maintain your contact information across systems.

In the meantime, we're here to help with your Xero integration needs, starting with our invoice import solution that helps businesses save time and reduce errors when bringing external invoices into Xero.