Overview
At Summ, one of the leading cloud-based accounting platforms, we know how important it is to have a product that integrates smoothly with Xero. Track of all your crypto-related finances and understand sources of revenue, losses, and expenses. This integration allows you to seamlessly export categorized crypto transactions from Summ into Xero, helping streamline your bookkeeping and simplify your accounting workflow. We’ve also made the integration customizable so that mappings can be tailored to your needs.
Summ + Xero
The integration works by users first signing up to our app. Once they have done this, they are then able to use the application to import their cryptocurrency transactions from a range of exchanges and blockchains. After the user has imported, categorised and reconciled their transactions they can then use the Xero integration to upload the transactions to journals in Xero.
To create these manual journals, Summ requires an account mapping to be input to determine which accounts should be credited and which should be debited in a range of different scenarios. At a later date the user can import new transactions into the app, reconcile and resync the journals in Xero.
Getting started
Step 1: Allow the Summ app to upload Manual Journals on your behalf by authorizing this action in Xero.
Step 2: Navigate to the ‘Get Report’ tab in the Summ platform and click ‘Download report’. Select the ‘Software integrations’ option to connect to Xero. Note: You will only be able to access the ‘Download report’ feature if you are a paid Summ user. Free accounts will not be able to access the Xero feature.
Step 3: Organize your account mapping. ‘Account mapping’ is a way to tell the Summ app what account to increase and/or decrease in certain situations. We’ve outlined the details below:
‘Cash’: The account that decreases when purchasing crypto with fiat currency, and increases when purchasing fiat using crypto.
‘Asset’: The account that increases when the amount or value of the crypto you hold increases.
‘Fee’: The contra account that will track any fees that have been paid. As more fees are paid, the value in this account will increase.
‘Loss’: The contra account for losses including realized losses from margin trades, burning crypto or having your crypto stolen or lost. This should NOT be used to track capital losses.
‘Expense’: The contra account for expenses incurred while participating in crypto activities. This can include outgoing gifts, general expenses, and any personal use expenses.
‘Income’: The contra account for income earned via your crypto activity. This can include things like mining rewards, staking rewards, airdrops, royalties, gifts, and profit from mining trades. The value in this account will decrease as you earn more crypto-based income.
‘Loan’: The account for keeping track of your liabilities, which decreases when you take out a crypto loan and increases when you make any crypto loan repayments.
‘Realized gain’/’Realized loss’: The accounts that absorb the increase/decrease in the value of crypto assets you hold before disposed of. These accounts give you a method to calculate the gains or losses on your different crypto holdings. Currently, any losses are calculated using the First In First Out (FIFO) method.
Step 4: Once account mapping is complete, click ‘Sync accounts’ in the Xero Integration module on the Settings page of the Summ platform.
Step 5: Multiple accounting journals will now be uploaded to your linked Xero account. You can re-sync these accounts by clicking the ‘Sync Accounts’ button.
Step 6: Navigate to your Xero tenant dashboard, click on ‘Accounting’, then ‘Manual Journals’. Click ‘Drafts’ to find the uploaded journals. Our integration is built so that a manual journal is generated for every day you make a crypto transaction.
Note: The Xero integration doesn’t currently support updating transactions. Make sure that your transaction history is reconciled, or you may have to delete your past journals and disconnect/reconnect Xero if you edit your transaction history.
