Xero MCP Server: Tools, Setup and Security

Xero offers two official MCP routes. A hosted Xero connector gives Claude read-only access to financial summaries such as profit and loss, cash position and unpaid invoices. The open-source Xero MCP server, published by Xero's GitHub organization, runs on your computer and can also create invoices, contacts, payments and payroll timesheets.

Checked against: Xero's GitHub repository, Claude's Xero connector listing and Xero Central's setup article on 28 October 2026. eSEOspace did not install or test this server.

At a glance

What it can do

Hosted connector

Claude's directory lists 20 tools from Xero Limited, including get_financial_position, get_cash_position, get_profit_and_loss, get_top_customers_by_revenue, get_aged_receivables, get_aged_payables, get_invoices, get_bills, get_bank_account_transactions, get_chart_of_accounts and get_1099_report_summary. The listing says access is read-only and retrieved data is not stored between sessions.

Local open-source server

The README lists these command groups:

• List tools: list-accounts, list-contacts, list-invoices, list-payments, list-bank-transactions, list-profit-and-loss, list-trial-balance, list-report-balance-sheet, aged receivables and payables by contact, and payroll employee and leave lists.
• Create tools: create-invoice, create-contact, create-payment, create-credit-note, create-quote, create-manual-journal, create-bank-transaction and create-payroll-timesheet.
• Update tools: update-invoice (draft invoices), update-contact, update-manual-journal, update-bank-transaction and others.
• Payroll timesheets: approve-payroll-timesheet, revert-payroll-timesheet, add-payroll-timesheet-line and delete-payroll-timesheet.

How to connect it

Hosted connector

Xero's Xero Central setup article gives these steps, as of October 2026:

1. In your Claude account, open the Connector Directory.
2. Find and open Xero, then click Connect.
3. Enter your Xero email and password, if prompted.
4. If you have more than one Xero organisation, select the one to connect.
5. Click Allow.

Xero says the connector works on any Xero business pricing plan and connects one organisation at a time. To switch organisations, you disconnect and reconnect. Our step-by-step guide covers the rest: connect Claude to Xero.

Local server with a custom connection

Xero's README says to set up a custom connection in your Xero developer account. Then add this to claude_desktop_config.json (Settings > Developer > Edit config):

{
  "mcpServers": {
    "xero": {
      "command": "npx",
      "args": ["-y", "@xeroapi/xero-mcp-server@latest"],
      "env": {
        "XERO_CLIENT_ID": "your_client_id_here",
        "XERO_CLIENT_SECRET": "your_client_secret_here",
        "XERO_SCOPES": "accounting.invoices accounting.contacts accounting.settings"
      }
    }
  }
}

Local server with a bearer token

For multiple Xero accounts, the README uses XERO_CLIENT_BEARER_TOKEN in the env block instead. It takes precedence over the client ID.

Security notes

• Start read-only. The hosted connector is read-only, which suits reporting questions. The local server can create invoices, payments and manual journals.
• Scopes. Custom connections created before 29 April 2026 use bundled scopes. Newer ones need granular scopes. You can narrow access with XERO_SCOPES.
• Deprecated scopes. The README flags some scopes, such as accounting.transactions, as deprecated. Check Xero's scopes page for timelines.
• Secrets. The README warns not to commit your .env file or credentials to version control.
• Payroll data. Payroll tools expose employee and leave data. Limit who can use them.

See our guides to excessive permissions and secret leakage, and the MCP security center.

Alternatives

• QuickBooks Online, which has a hosted connector that can create invoices.
• Zoho Books, with a connector in Claude's directory.
• LedgerMCP, an MCP-native ledger (built by eSEOspace).

Find more in the MCP server directory.

Next step

Comparing accounting platforms for AI use? Read Best MCP Accounting and Bookkeeping Tools.

Frequently asked questions