Why Should Your Dental Lab Integrate With Xero

February 12, 2025

In the world of dental labs, efficiency is key. Integrating your lab software with Xero, a popular cloud-based accounting tool, can streamline your financial processes and save you time.

This article explores the benefits of this integration and how it can simplify your accounting tasks.

Key Takeaways

  • Simplifies End-of-Year Accounts: Makes submitting accounts to HMRC easier.

  • Direct Bank Connection: Allows real-time tracking of payments and easy reconciliation.

  • Backup for Invoices: Provides a reliable backup for your invoices and payments.

  • True Integration vs. Manual Export: Understand the difference between true integration and manual exports.

  • Bidirectional Syncing: Ensures data is updated in real-time across both systems.

What Is Xero?

Xero is a cloud-based accounting software that many accountants and dental labs in the UK are using.

It helps manage finances efficiently, making it a popular choice for dental labs looking to improve their accounting processes.

Why Integrate Xero With Your Lab Software?

Integrating Xero with your lab software can bring several advantages:

  1. Easier End-of-Year Accounts: Every year, dental labs must submit accounts to HMRC or other governing bodies. Xero simplifies this process, making it less of a headache.

  2. Direct Bank Connection: Xero connects directly to your bank account. This means you can see payments coming in and easily reconcile them with invoices.

  3. Backup for Payments and Invoices: While you should rely on your lab software, having a backup in Xero is a smart move. It acts as a second set of eyes on your invoices and payments.

The Problem with Manual Exports

Many lab software systems claim to integrate with Xero, but often this means they only offer a manual export option.

This typically involves:

  • Exporting data as a CSV or Excel sheet.

  • Uploading it manually to Xero.

This method has several downsides:

  • Frequency: Exports are usually done once a month, which isn’t frequent enough.

  • Human Error: Manual processes are prone to mistakes.

  • Lack of Real-Time Updates: Data isn’t live, leading to discrepancies.

What Is True Integration?

True integration means having bidirectional syncing. This means:

  • When you add a payment in your lab software, it automatically updates in Xero.

  • Invoices created in your lab software are sent to Xero without manual intervention.

  • Payments received in Xero are reconciled back to your lab software.

How to Integrate Xero with Your Lab Software

Integrating Xero with your lab software is straightforward. Here’s how:

  1. Create a Xero Account: Ensure you have an account with Xero.

  2. Connect to Your Lab Software: Go to the integration section in your lab software and click to connect.

  3. Set Up Account Codes: Make sure your account codes match in both systems to avoid issues.

Customisation Options

One of the great features of this integration is the ability to set rules for which invoices go to Xero. You can limit this based on:

  • Practice name

  • Doctor name

  • Other criteria that suit your needs

Automating Invoice Transfers

You can also automate how often invoices are sent to Xero. Options include:

  • Sending after a set number of minutes.

  • Sending at specific times of the day or week.

  • Customising the frequency to fit your workflow.

Testing the Integration

Once set up, you can test the integration by sending an invoice to Xero. This process is simple:

  1. Click on the invoice in your lab software.

  2. Select the option to send it to Xero.

  3. Check that it appears correctly in Xero.

The Benefits of Bidirectional Syncing

With bidirectional syncing, you can:

  • Save hours each month on manual checks.

  • Keep your accounts updated daily.

  • Reduce the stress of end-of-month reconciliations.

Conclusion

Integrating Xero with your dental lab software can take your financial management to the next level.

It streamlines your workflows, reduces errors, and saves you time. If you’re ready to enhance your lab’s efficiency, consider making the switch to Xero.

For more information, check out Greatlab.io and see how this integration can work for you!

Thank you for staying connected with Dental Lab Tips.  We look forward to bringing you more exciting updates from the world of dental technology.