The Top Inventory Add-ons & Integrations for Xero
BSimple provides native Xero integration designed specifically for inventory-based businesses:
- Real-time inventory sync with Xero for accurate financial reporting
- Automatic COGS calculations on every sale for true profit visibility
- Purchase orders that match to Xero bills for streamlined AP workflows
- Multi-location inventory tracking with consolidated Xero reporting
- GST-compliant transactions that flow correctly for BAS preparation
- Customer invoicing directly from BSimple that creates Xero invoices
Xero is brilliant accounting software, but it’s not designed for businesses with serious inventory requirements. If you’re managing hundreds or thousands of SKUs, dealing with multiple suppliers, or operating complex purchasing workflows, Xero’s native inventory features fall short. You need an inventory add-on that integrates deeply with Xero while providing the inventory management power Xero lacks.
The challenge is finding Xero inventory integration that’s actually built for Australian businesses. Many Xero add-ons are international products with Australian GST tacked on as an afterthought. The result? Reconciliation nightmares, incorrect COGS, and financial reports you can’t trust.
BSimple is purpose-built as a Xero inventory management add-on for Australian businesses. We’ve worked with wholesale distributors, manufacturers, and retailers across Australia to create inventory software that treats Xero integration as fundamental, not optional. Every inventory transaction flows to Xero automatically with correct GST treatment, proper COGS calculations, and the level of detail your bookkeeper needs.
How BSimple Inventory Integration Works with Xero
The best inventory software for Xero isn’t just an add-on that exports data—it’s a system where Xero integration is built into the foundation. BSimple connects to Xero through native APIs with bi-directional sync that keeps both systems accurate.
Here’s how the integration works in practice:
Product Sync: Your inventory items sync to Xero as tracking categories or individual accounts based on your accounting structure. Changes to product details in BSimple update Xero automatically, keeping both systems aligned.
Sales Create Invoices: When you process a sale in BSimple—whether from a customer ordering portal, manual entry, or ecommerce integration—the system creates the corresponding Xero invoice automatically. Line items, quantities, pricing, and GST all flow through correctly.
Purchase Orders Match Bills: Create purchase orders in BSimple to manage your buying. When stock arrives and you receive it in BSimple, the system matches the PO to the supplier’s bill in Xero. This streamlines accounts payable and ensures your inventory costs align with what you actually paid.
Inventory Adjustments: Stocktakes, damaged goods, returns—any inventory adjustment in BSimple creates the corresponding Xero journal entry with proper COGS impact and inventory asset adjustments.
This level of integration means your inventory management and accounting are always in sync. No end-of-month reconciliation, no manual journal entries, no discovering your Xero inventory values don’t match your actual stock. For businesses managing ecommerce alongside wholesale, our ecommerce inventory system extends this Xero integration to multi-channel sales.
Accurate COGS and Profit Tracking with Xero Integration
Here’s where most Xero inventory add-ons fail: cost of goods sold calculations. COGS is critical for understanding profitability, but many systems either don’t track COGS properly or fail to sync accurate COGS data to Xero. The result? Your Xero profit reports are wrong, and you’re making business decisions based on inaccurate financial data.
BSimple handles COGS correctly:
- Cost tracking at receipt: When you receive stock from a purchase order, BSimple records the actual cost paid for each item
- Valuation method applied: Choose FIFO, weighted average, or standard costing—BSimple applies your chosen method consistently
- COGS calculated on every sale: Each sale calculates COGS based on actual inventory costs and your valuation method
- Xero invoice includes COGS: The Xero invoice created from the sale includes correct COGS for accurate profit calculation
This means your Xero profit and loss statement shows true profit margins. You can analyze profitability by customer, product category, or sales channel—all based on actual inventory costs, not estimates or averaged figures.
For wholesale businesses, this level of COGS accuracy is essential. Different customers have different pricing, products have different margin profiles, and understanding true profitability by customer or product line drives strategic decisions. Our comprehensive inventory management software guide covers these profit tracking capabilities in detail.
Australian GST Compliance for Xero Inventory Management
GST compliance is non-negotiable for Australian businesses using Xero. Every stock purchase and sale needs correct GST treatment in Xero for accurate BAS reporting. International inventory add-ons often struggle with Australian GST nuances—the difference between GST-inclusive and GST-exclusive pricing, GST-free sales, and handling GST on stock adjustments.
BSimple is built by Australians who understand GST requirements:
Purchase GST Tracking: When you create purchase orders and receive stock, BSimple tracks the GST component separately. This flows to Xero correctly as a GST input claim, whether your supplier invoices GST-inclusive or GST-exclusive.
Sales GST Application: Customer invoices apply correct GST based on customer type and product GST treatment. B2B sales to GST-registered businesses, consumer sales, GST-free exports—all handled correctly in both BSimple and Xero.
Stock Adjustment GST: Write-offs, damaged goods, and inventory adjustments include appropriate GST treatment. If you’re writing off stock that included GST on purchase, the adjustment in Xero reflects this correctly.
BAS-Ready Reporting: Because all inventory transactions flow to Xero with correct GST coding, your BAS preparation is straightforward. No manual schedules to track GST on stock, no reconciliation between inventory and GST reporting.
Your bookkeeper will appreciate having clean Xero data that’s ready for BAS submission without manual adjustments. This is the difference between inventory software that understands Australian requirements and international add-ons that don’t quite get it right.
Check out our Australian team and our local approach to Xero integration. We’re based in Queensland (1300 980 598) and provide support during Australian business hours from people who understand Xero and Australian accounting.
Frequently Asked Questions
What’s the best inventory management software for Xero in Australia?
BSimple is specifically designed as a Xero inventory management add-on for Australian businesses. We provide native integration with real-time sync, accurate COGS tracking, GST compliance, and purchase order management that matches to Xero bills. Unlike international add-ons, BSimple understands Australian tax requirements and integrates with Xero the way Aussie businesses need.
Does BSimple inventory software work with Xero in real-time?
Yes, BSimple syncs with Xero in real-time through native API integration. When you process a sale, the Xero invoice is created immediately. When you receive stock, inventory values update in Xero instantly. This bi-directional sync ensures both systems are always accurate without manual exports or scheduled batch updates.
How does BSimple handle COGS for Xero reporting?
BSimple calculates cost of goods sold on every sale using your chosen valuation method (FIFO, weighted average, or standard costing). The COGS flows to Xero automatically with each invoice, ensuring your Xero profit and loss statement reflects true margins. This gives you accurate profitability reporting by customer, product, or sales channel.
Can BSimple handle GST compliance for Australian Xero users?
Yes, BSimple is built for Australian GST compliance. All inventory transactions include proper GST treatment—purchases track GST inputs, sales apply correct GST collection, and adjustments handle GST appropriately. Everything flows to Xero with correct GST coding for BAS reporting without manual schedules or reconciliation.
Does BSimple replace Xero’s native inventory features?
Yes, if you’re using BSimple, you’ll manage all inventory in BSimple rather than Xero’s native inventory module. BSimple provides significantly more powerful inventory management (purchase orders, multi-location tracking, customer portals, advanced reporting) while syncing all financial data to Xero. Xero becomes your accounting system while BSimple handles inventory operations.
How long does it take to set up BSimple with an existing Xero account?
Most Xero integrations are completed within a few days. The process involves connecting BSimple to your Xero organization via OAuth, mapping your chart of accounts and tracking categories, and importing existing products and inventory levels. We provide setup support to ensure the integration is configured correctly for your business structure and Australian accounting requirements.