If you've linked a Xero account, you'll see some different options under the "Bank details" section on the Company page of your iwoca account. These allow you to:
- Have the funds sent to a bank account you already have set up in Xero, without needing to type in the sort code and account number again
- Choose to have iwoca automatically send back data on your credit line to your Xero account every time you take funding or make a repayment, saving you time on bookkeeping
Choosing the bank account where we'll send the funds
At the top of the Company page in your iwoca account, the first question asks you to choose a bank account where we'll send the money when you choose to draw down funds.
To save you typing in your bank details, you can choose one of the bank accounts that you've previously set up in Xero account. Note that the account names shown in the drop down menu are taken directly from Xero and may not match your actual account name. You should verify that the correct sort code and account number has been filled in after selecting an account.
If you'd prefer to use a different bank account that isn't in Xero, just choose "Use an account that's not in Xero" and enter your sort code and account number.
Reporting data back to Xero
You can choose to have iwoca automatically add transactions to Xero each time you draw down funds or make a repayment, saving you time on bookkeeping and helping to keep your accounts accurate and up to date.
To do this just tick the "Report data back to Xero" option. You'll then be asked which liabilities and expense account you'd like your iwoca loan to be reported against as in the following screenshot:
You may wish to seek advice from your accountant about exactly how your iwoca credit line should be accounted for in Xero but here's a general overview of the options:
- Xero liabilities account: This is where we record the actual loan amount (i.e. excluding interest) that you owe iwoca. We'll add to it when you draw down funding and reduce it as you repay the original loan amount
- Xero expense account: This is where we record any interest that you've paid to iwoca when you make a repayment. We'll add to it each time you make a repayment, recording the amount of interest paid
Xero have a helpful guide on creating liability or expense accounts if you haven't yet created the right ones for iwoca. If you have created new ones in Xero since you first linked your account to iwoca, you'll need to refresh the available options by clicking the refresh button next to the relevant drop down menu:
That's it. Once you've selected these options and clicked "Save", we'll know where to send the funds and will start automatically reporting data back to Xero.
After you change your settings, it's worth checking that the correct data is being reported back to Xero the first couple of times you draw down funding or make a repayment. If there are any problems you can always change your settings or disable reporting by returning to the same page. Alternatively, just send us a message if you need more help.