Xero teams with Bookkeeper360 on embedded payments

Xero has partnered with Bookkeeper360 on a custom integration for small and mid-sized business customers. The companies said it is Xero's first integration of this kind.

The arrangement brings Xero and Melio accounts payable and accounts receivable functions into the Bookkeeper360 platform through an embedded white-label setup, allowing Bookkeeper360 to offer the services under its own brand.

The integration is designed to let accounting firms provide branded payment workflows within their own platforms rather than sending clients to separate systems. Firms can use it whether or not they use Xero as their accounting software.

Melio became part of Xero last year and has been central to Xero's push to expand in the US market, particularly among accountants and bookkeepers. The Bookkeeper360 deal gives Xero another way to place payment tools inside the systems used by advisory and accounting firms.

Embedded payments

The embedded model covers accounts payable, accounts receivable and configurable workflows. It also includes branding features such as single sign-on, portals and internal tools within a firm's existing technology stack.

The commercial structure removes platform subscription fees and avoids per-seat charges, instead using pricing based on client use. It also supports unlimited accountant users.

For Bookkeeper360, the move expands the range of finance operations it can offer through its own interface. Founded in 2012, the company provides accounting, payroll, tax, HR and fractional chief financial officer services to small and mid-sized businesses.

Xero, which says it serves 5 million small businesses and accounting professionals across more than 180 countries, has been building out its US product set beyond core accounting. Payments and payroll have been central to that effort as it seeks deeper ties with accounting firms.

Jonathan Meltzer, Managing Director, US at Xero, said the integration shows how Xero wants its software and acquired payment services to work together inside third-party environments.

"Our custom integration with Bookkeeper360 demonstrates what's possible when platform connectivity is at its best," said Jonathan Meltzer, Managing Director, US at Xero. "By utilizing both Xero and Melio's combined capabilities, we've created an even more powerful ecosystem that ensures Bookkeeper360's customers have direct access to accounting, payments, payroll and analytics capabilities in environments that are native to their core workflows."

US strategy

The partnership also reflects a broader shift in the accounting software market, with firms increasingly wanting finance tools to sit inside existing workflows rather than operate as separate products. Embedded payments have become one way software providers can deepen relationships with accounting practices and their clients.

The offering could also be extended to other firms seeking similar white-label arrangements, suggesting the Bookkeeper360 launch may serve as a model for further partnerships with accounting and advisory businesses in the US.

David Emmerman outlined Bookkeeper360's rationale for the agreement as linking operational finance work with its client service model.

"At Bookkeeper360, our focus has always been on combining expert accounting services with technology that makes managing finances easier for growing businesses," said David Emmerman, Chief Operating Officer of Bookkeeper360. "Our partnership with Xero allows us to further enhance that experience by bringing accounting and payment workflows together, helping our clients save time, streamline operations, and gain greater control over their finances."