How to connect Xero MCP with VS Code

How to connect Xero MCP with VS Code VS Code is the most popular code editor out there. With its recent AI makeover, it can do more than just help you write code. You can connect your applications to it and let LLMs automate many of the mundane tasks in your workflow. In this guide, I will explain how to connect Xero with VS Code in the most secure and robust way possible via Composio.

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Xero is cloud-based accounting software for small businesses, offering invoicing, bookkeeping, and real-time financial reports. It helps you manage business finances efficiently from anywhere.

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How to connect Xero MCP with VS Code

VS Code is the most popular code editor out there. With its recent AI makeover, it can do more than just help you write code. You can connect your applications to it and let LLMs automate many of the mundane tasks in your workflow.

In this guide, I will explain how to connect Xero with VS Code in the most secure and robust way possible via Composio.

Also integrate Xero with

Why use Composio?

Composio provides:

  • Access to 1,000+ managed apps from a single MCP endpoint. This makes it convenient for agents to run cross-app workflows.
  • Programmatic tool calling. Allows LLMs to write its code in a remote workbench to handle complex tool chaining. Reduces to-and-fro with LLMs for frequent tool calling.
  • Large tool response handling outside the LLM context. This minimizes context bloat from large tool responses.
  • Dynamic just-in-time access to thousands of tools across hundreds of apps. Composio loads the tools your agent needs, so LLMs are not overwhelmed by tools they do not need.

Integrate Xero MCP with VS Code

1. Install with one click

Click the button below to add Composio to VS Code. You will be prompted to authorize. This requires VS Code 1.99+ with GitHub Copilot.

+Install in VS Code

2. Or add manually

Open or create .vscode/mcp.json in your project root and add the following configuration:

bash
{
  "servers": {
    "composio": {
      "type": "http",
      "url": "https://connect.composio.dev/mcp"
    }
  }
}

3. Authorize

Click the install button to authorize VS Code to connect to Composio. VS Code will detect OAuth and prompt you to sign in.

VS Code MCP server install screen for Composio

A browser window will open to authorize.

Composio authorization browser window

4. Authenticate Xero and start working

Back in VS Code chat, ask the agent to connect to Xero or give it any Xero-related task.

For example, ask it to:

  • "List all active Xero tenant connections"
  • "Show latest contacts added this week"
  • "Retrieve all open quotes for this month"

It will prompt you to authenticate and authorize access to Xero.

That is it. Composio tools are now available in VS Code, and your Xero account is ready to use.

Way Forward

Now that Xero is connected, extend your setup by connecting the other apps you already use every day, so your agent can run true cross-app workflows end to end.

  • Connect Calendar to turn threads into scheduled meetings automatically.
  • Connect Slack or Teams to post summaries, approvals, and alerts where your team works.
  • Connect Notion, Linear, Jira, or Asana to convert requests into tickets, tasks, and docs.
  • Connect Drive, Dropbox, or OneDrive to fetch, file, and share attachments without manual steps.
  • Connect HubSpot or Salesforce to log customer context, update records, and draft follow-ups.

Start with one workflow you do repeatedly, then keep adding apps as you find new handoffs. With everything behind a single MCP endpoint, your agent can coordinate multiple tools safely and reliably in one conversation.

TOOLS

Supported Tools

Every Xero action and event your agent gets out of the box.

Create Bank Transaction

Create a bank transaction in Xero.

Create Contact

Create a new contact in Xero.

Create Invoice

Create a new invoice in Xero.

Create Item

Create an inventory item in Xero.

Create Manual Journal

Create one or more manual journals (journal entries) in Xero with journal lines.

Create Payment

Create a payment in Xero to link an invoice with a bank account transaction.

Create Purchase Order

Create a purchase order in Xero to order goods/services from suppliers.

Get Account

Retrieve a specific account from Xero's chart of accounts by its unique ID.

Get Asset

Retrieve a specific asset by ID from Xero.

Get Balance Sheet Report

Retrieve Balance Sheet report from Xero.

Get Budget

Retrieve a budget from Xero.

Get Connections

Tool to list active Xero connections.

Get Contacts

Tool to retrieve a list of contacts.

Get Invoice

Retrieve a specific invoice by ID from Xero.

Get Item

Retrieve a specific item by ID from Xero.

Get Manual Journal

Retrieve a specific manual journal by ID from Xero.

Get Organisation

Retrieve organisation details from Xero.

Get Profit & Loss Report

Retrieve Profit & Loss report from Xero.

Get Project

Retrieve a specific project by ID from Xero.

Get Purchase Order

Retrieve a specific purchase order by ID from Xero.

Get Quotes

Tool to retrieve a list of quotes.

Get Trial Balance Report

Retrieve Trial Balance report from Xero.

List Accounts

Retrieve chart of accounts from Xero.

List Assets

Retrieve fixed assets from Xero.

List Attachments

List all attachments for a specific entity in Xero (invoice, contact, etc.

List Bank Transactions

Retrieve bank transactions from Xero.

List Credit Notes

Retrieve list of credit notes from Xero.

List Files

Retrieve files from Xero Files.

List Folders

Retrieve folders from Xero Files.

List Invoices

Retrieve a list of invoices from Xero.

List Items

Retrieve items (inventory/products) from Xero.

List Journals

Retrieve journals from Xero.

List Manual Journals

Retrieve manual journals from Xero.

List Payments

Retrieve list of payments from Xero.

List Projects

Retrieve projects from Xero.

List Purchase Orders

Retrieve list of purchase orders from Xero.

List Tax Rates

Retrieve tax rates from Xero.

List Tracking Categories

Retrieve tracking categories from Xero.

Update Invoice

Tool to update an existing invoice.

Update Contact

Update an existing contact in Xero.

Upload Attachment

Upload a file attachment to a Xero entity (invoice, contact, etc.

FAQ

Frequently asked questions

With a standalone Xero MCP server, the agents and LLMs can only access a fixed set of Xero tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Xero and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. VS Code fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Xero tools.

Yes, absolutely. You can configure which Xero scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Xero data and credentials are handled as safely as possible.

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