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How to add and manage customers on Xero

beginner 8 min read Updated 2026-03-18
Quick Answer

Adding customers in Xero involves navigating to the Contacts section, clicking Add contact, and filling in customer details including contact information and billing preferences. You can then manage existing customers by editing their information, setting credit limits, and tracking their transaction history.

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Prerequisites

  • Active Xero subscription
  • Admin or Standard user permissions
  • Basic understanding of customer information requirements
  • Access to customer contact details and billing information

Step-by-Step Instructions

1

Access the Contacts section

Log into your Xero dashboard and click on Contacts in the main navigation menu. This will display your existing contacts list where you can view all customers, suppliers, and other contacts.
Use the search bar to quickly find existing contacts before adding duplicates.
2

Create a new customer contact

Click the Add contact button in the top right corner of the Contacts page. Select Customer from the contact type options to ensure the contact is set up correctly for sales transactions.
3

Enter basic customer information

Fill in the essential details in the contact form:
  • Contact name: Enter the customer's business or full name
  • Email address: Primary contact email for invoices
  • Phone number: Main contact number
  • Contact person: Key person for business customers
The contact name will appear on invoices, so ensure it matches how you want it displayed professionally.
4

Add address and billing details

Complete the address section with:
  • Street address: Physical or mailing address
  • City, State/Region, and Postal code
  • Country: Select from dropdown menu
You can add separate billing and shipping addresses by clicking Add another address.
Adding complete address information helps with tax calculations and compliance reporting.
5

Configure payment and credit settings

Set up payment preferences in the Sales defaults section:
  • Payment terms: Choose from preset options like Net 30, Due on receipt
  • Sales tax rate: Select appropriate tax rate
  • Credit limit: Set maximum outstanding balance if needed
  • Account code: Assign revenue account for this customer
Setting credit limits helps you monitor customer payment behavior and manage cash flow risks.
6

Save and verify customer details

Click Save to create the customer contact. Review the contact summary page to ensure all information is correct. The customer will now appear in your Contacts list and be available for creating invoices and quotes.
7

Edit and manage existing customers

To modify customer information, go to Contacts, find the customer, and click their name. Click Edit to update details, or use the Actions dropdown to:
  • View transaction history
  • Create invoices or quotes
  • Send statements
  • Archive inactive customers
Regularly review and update customer information to maintain accurate records and improve communication.
8

Monitor customer activity and reports

Track customer performance by accessing Reports > Aged Receivables to see outstanding invoices, or Contact Reports for detailed customer activity. Use the customer's contact page to view their complete transaction history, payment patterns, and account balance.
Set up automated reminders for overdue invoices by configuring payment reminders in Account Settings.

Common Issues & Troubleshooting

Customer contact appears as supplier instead of customer

Edit the contact and change the contact type from Supplier to Customer in the contact details section. You may need to update the default account codes.

Cannot find newly added customer when creating invoice

Check that the contact was saved properly by searching in the Contacts list. If missing, the contact may not have been saved due to required field validation errors.

Duplicate customers appearing in system

Use the Merge contacts feature by going to one customer's contact page, clicking Actions > Merge contact, and selecting the duplicate to combine their transaction histories.

Customer credit limit warnings not appearing

Ensure the credit limit is set in the customer's Sales defaults section and that your user permissions allow viewing credit limit alerts. Check Settings > Invoice Settings for credit limit notification preferences.

Prices mentioned in this guide are pulled from current plan data and may change. Always verify on the official Xero website before purchasing.
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