Introduction
Setting up invoice settings in Xero ensures your sales invoices display accurate business details, payment terms, branding, and contact information. Customising your invoice layout also helps maintain a professional look and clear communication with your customers.
Before You Start
Before editing your invoice settings, make sure your organisation details are up to date.
From the dashboard, go to Settings → Organisation details and confirm that your business name, address, registration number, and logo are accurate. This information automatically appears on your invoices and other customer documents.
How to Set Up Invoice Settings in Xero
Follow these steps to configure your invoice settings properly:
Step 1:From the dashboard, go to Accounting, choose Accounting Settings.
Step 2: Go to the Sales section, choose Invoice Settings.
Step 3: Click New Branding Theme or choose an existing one to edit. By default, you’ll see the Standard template.
Step 4: Click Options. Click change logo.
Step 5: Upload or replace your business logo.
Step 6: Click Options and choose Edit to make changes.
Step 7: Review and update the following details as needed:
Theme Name: Rename it for easier identification (e.g., “Standard – Local Clients”).
Tick or untick boxes to show or hide details such as Tax Number, Column Headings, Unit Price & Quantity, Tax Column, Registered Address, or Logo.
Choose your Logo Alignment — select Left, Centre, or Right.
Under Show Taxes As, choose whether to display prices as Exclusive (before tax) or Inclusive (after tax).
Enter your Contact Details exactly as you want them to appear on all invoices and PDFs.
Step 8: Scroll to the section containing display and totals options — find Show tax subtotals by and use the dropdown to choose how tax subtotals appear on the PDF:
Tax components over 0% — shows only tax lines that are greater than 0%.
Tax rates — shows a subtotal per tax rate used on the invoice.
Do not show tax subtotals — hides tax subtotal lines.
Select the option that matches your reporting and customer presentation needs.
Step 9: Find Show currency conversion as and choose how Xero should display foreign currency totals:
A single tax total — shows one combined tax total for the converted amount.
Tax totals per line (or similar options) — shows tax broken down per line or per tax rate (if available).
Pick the format that makes the invoice easiest for your customers to understand.
Step 10: Locate the Payment Services fields (Credit Card, PayPal, Bank Payments). Use each dropdown to select a connected payment provider you want to offer on this invoice template. If the service you want isn’t listed, you must first connect it to Xero.
Step 11: Scroll down to the Terms & Payment Advice (Invoice and Statement) section. Enter your bank details and payment instructions.
If you also issue quotes, you can add related notes under Terms (Quotes) — for example, quotation validity or deposit terms. Once all information is entered.
Step 12: Click Save to apply the changes. Once saved, any future invoices using this branding theme will automatically reflect your new layout and details.
Tips for Professional Invoice Setup
Always include your business registration and tax number for compliance.
Keep your payment terms and methods consistent across all invoices.
Use a clear invoice template to make it easy for clients to identify key information.
Review your branding themes regularly to ensure your details stay up to date.
Frequently Asked Questions (FAQs) about Invoice Settings in Xero
Q: How do I set default payment terms?
A: Within the invoice settings, you can specify how many days after the invoice date payment is due. These terms will be applied automatically each time you create a new invoice.
Q: How do I show my bank details on the invoice?
A: In the Terms & Payment Advice section of your branding theme, you can enter your bank name, account number, and payment message so customers know how to make payments.
Q: Can I use different invoice templates for different purposes?
A: Yes. You can create and manage multiple branding themes. For example, one can be used for local invoices and another for overseas or project-based invoices.
Q: How can I check the invoice layout before sending it?
A: Click Preview when editing a branding theme to see exactly how your invoice will appear before saving or sending it to your customer.
Q: If I update my invoice settings, will it affect old invoices?
A: No. Any changes you make will only apply to new invoices created after the update. Existing invoices will remain unchanged.
Conclusion
Configuring your invoice settings in Xero ensures all your sales invoices reflect your business identity, contain accurate information, and make it easy for customers to pay. Once set up, your invoices will be automatically formatted using your chosen defaults and branding theme, saving time and improving professionalism.