accounting-automation

name	accounting-automation
description	Automate accounting workflows using QuickBooks and Xero APIs. Covers invoicing, expense tracking, bank reconciliation, financial reporting, and AI-powered bookkeeping automation.
license	Apache 2.0
tags	["accounting","quickbooks","xero","invoicing","bookkeeping","fintech","automation"]
difficulty	intermediate
time_to_master	8-12 weeks
version	1.0.0

Accounting Automation

Overview

QuickBooks (Intuit) and Xero dominate small-to-mid-market accounting with 10M+ combined customers. Their APIs enable AI agents to create invoices, categorize expenses, reconcile bank transactions, and generate financial reports — eliminating hours of manual bookkeeping. This skill covers both platforms' APIs and common automation patterns.

When to Use This Skill

• Building MCP servers for automated bookkeeping
• Creating invoice generation and payment tracking workflows
• Automating expense categorization with AI
• Implementing bank reconciliation automation
• Generating financial reports (P&L, balance sheet, cash flow)
• Syncing accounting data with CRM or ERP systems

Core Concepts

Platform Comparison

Feature	QuickBooks Online	Xero
Market	US-dominant (80% SMB)	Strong in UK, AU, NZ
API Style	REST	REST
Auth	OAuth 2.0	OAuth 2.0
Webhooks	Yes	Yes
Sandbox	Yes (free)	Demo Company
Rate Limit	500 req/min	60 req/min

Core Accounting Objects

Chart of Accounts
  ├── Assets (bank accounts, receivables)
  ├── Liabilities (payables, loans)
  ├── Income (revenue accounts)
  ├── Expenses (cost categories)
  └── Equity (owner's equity)

Transactions
  ├── Invoices (money owed to you)
  ├── Bills (money you owe)
  ├── Payments (money received)
  ├── Expenses (money spent)
  ├── Journal Entries (manual adjustments)
  └── Bank Transactions (imported from bank)

Implementation Guide

QuickBooks Online API

import OAuthClient from "intuit-oauth";

// Initialize OAuth client
const oauthClient = new OAuthClient({
  clientId: process.env.QBO_CLIENT_ID,
  clientSecret: process.env.QBO_CLIENT_SECRET,
  environment: "production", // or "sandbox"
  redirectUri: process.env.QBO_REDIRECT_URI,
});

// Create an invoice
async function createInvoice(customerId, lineItems) {
  const invoice = {
    CustomerRef: { value: customerId },
    Line: lineItems.map(item => ({
      DetailType: "SalesItemLineDetail",
      Amount: item.amount,
      SalesItemLineDetail: {
        ItemRef: { value: item.itemId },
        Qty: item.quantity,
        UnitPrice: item.unitPrice,
      },
    })),
    DueDate: new Date(Date.now() + 30 * ).().()[],
  };

   response =  qboClient.({
    : ,
    : ,
    : .(invoice),
  });

   response..;
}


  () {
   query = ;
   response =  qboClient.({
    : ,
  });
   response...;
}

Xero API

import { XeroClient } from "xero-node";

const xero = new XeroClient({
  clientId: process.env.XERO_CLIENT_ID,
  clientSecret: process.env.XERO_CLIENT_SECRET,
  scopes: ["openid", "profile", "email", "accounting.transactions", "accounting.reports.read"],
});

// Create invoice in Xero
async function createXeroInvoice(contactId, items) {
  const invoice = {
    type: "ACCREC", // Accounts Receivable (sales invoice)
    contact: { contactID: contactId },
    lineItems: items.map(item => ({
      description: item.description,
      quantity: item.quantity,
      unitAmount: item.unitPrice,
      accountCode: "200", // Revenue account
      taxType: "OUTPUT2",
    })),
    date: new Date().toISOString().split("T")[],
    :  (.() +  * ).().()[],
    : ,
  };

   response =  xero..(tenantId, { : [invoice] });
   response..[];
}


  () {
   report =  xero..(
    tenantId, fromDate, toDate
  );
   report..[];
}

Accounting MCP Server

server.tool(
  "get_financial_summary",
  "Get a financial summary including revenue, expenses, and profit for a period",
  {
    period: z.enum(["this_month", "last_month", "this_quarter", "this_year"]),
    platform: z.enum(["quickbooks", "xero"]),
  },
  async ({ period, platform }) => {
    const { startDate, endDate } = resolvePeriod(period);
    const pnl = await getProfitAndLoss(platform, startDate, endDate);

    return {
      content: [{
        type: "text",
        text: `Financial Summary (${period}):\n` +
          `Revenue: $${pnl.totalIncome.toLocaleString()}\n` +
          `COGS: $${pnl.costOfSales.toLocaleString()}\n` +
          `Gross Profit: $${pnl.grossProfit.toLocaleString()} (${pnl.grossMargin.toFixed(1)}%)\n` +
          `Operating Expenses: $${pnl.totalExpenses.toLocaleString()}\n` +
          `Net Profit: $${pnl.netProfit.toLocaleString()} (${pnl.netMargin.toFixed(1)}%)\n`,
      }],
    };
  }
);

server.tool(
  "categorize_expenses",
  "Auto-categorize uncategorized bank transactions using AI",
  {
    limit: z.().(),
  },
   ({ limit }) => {
     uncategorized =  (limit);

     categorized = uncategorized.( ({
      ...txn,
      : (txn., txn.),
      : (txn),
    }));

     {
      : [{
        : ,
        :  +
          categorized.(
            
          ).(),
      }],
    };
  }
);

Best Practices

1. Use OAuth 2.0 with refresh tokens — never store user passwords
2. Sandbox first — test all operations in sandbox before production
3. Idempotent invoice creation — use external IDs to prevent duplicates
4. Respect rate limits — QuickBooks: 500/min; Xero: 60/min
5. Bank reconciliation should be human-approved — AI suggests, human confirms
6. Audit trail everything — log every financial transaction modification
7. Multi-currency handling — always store and convert amounts explicitly

Resources

• QuickBooks Online API Reference
• Xero API Documentation
• Intuit Developer Portal

Changelog

Version	Date	Changes
1.0.0	2026-03-31	Initial documentation