# How to integrate Xero MCP with Claude Agent SDK

```json
{
  "title": "How to integrate Xero MCP with Claude Agent SDK",
  "toolkit": "Xero",
  "toolkit_slug": "xero",
  "framework": "Claude Agent SDK",
  "framework_slug": "claude-agents-sdk",
  "url": "https://composio.dev/toolkits/xero/framework/claude-agents-sdk",
  "markdown_url": "https://composio.dev/toolkits/xero/framework/claude-agents-sdk.md",
  "updated_at": "2026-05-06T08:34:13.253Z"
}
```

## Introduction

This guide walks you through connecting Xero to the Claude Agent SDK using the Composio tool router. By the end, you'll have a working Xero agent that can list all active xero tenant connections, show latest contacts added this week, retrieve all open quotes for this month through natural language commands.
This guide will help you understand how to give your Claude Agent SDK agent real control over a Xero account through Composio's Xero MCP server.
Before we dive in, let's take a quick look at the key ideas and tools involved.

## Also integrate Xero with

- [ChatGPT](https://composio.dev/toolkits/xero/framework/chatgpt)
- [OpenAI Agents SDK](https://composio.dev/toolkits/xero/framework/open-ai-agents-sdk)
- [Claude Code](https://composio.dev/toolkits/xero/framework/claude-code)
- [Claude Cowork](https://composio.dev/toolkits/xero/framework/claude-cowork)
- [Codex](https://composio.dev/toolkits/xero/framework/codex)
- [Cursor](https://composio.dev/toolkits/xero/framework/cursor)
- [VS Code](https://composio.dev/toolkits/xero/framework/vscode)
- [OpenCode](https://composio.dev/toolkits/xero/framework/opencode)
- [OpenClaw](https://composio.dev/toolkits/xero/framework/openclaw)
- [Hermes](https://composio.dev/toolkits/xero/framework/hermes-agent)
- [CLI](https://composio.dev/toolkits/xero/framework/cli)
- [Google ADK](https://composio.dev/toolkits/xero/framework/google-adk)
- [LangChain](https://composio.dev/toolkits/xero/framework/langchain)
- [Vercel AI SDK](https://composio.dev/toolkits/xero/framework/ai-sdk)
- [Mastra AI](https://composio.dev/toolkits/xero/framework/mastra-ai)
- [LlamaIndex](https://composio.dev/toolkits/xero/framework/llama-index)
- [CrewAI](https://composio.dev/toolkits/xero/framework/crew-ai)

## TL;DR

Here's what you'll learn:
- Get and set up your Claude/Anthropic and Composio API keys
- Install the necessary dependencies
- Initialize Composio and create a Tool Router session for Xero
- Configure an AI agent that can use Xero as a tool
- Run a live chat session where you can ask the agent to perform Xero operations

## What is Claude Agent SDK?

The Claude Agent SDK is Anthropic's official framework for building AI agents powered by Claude. It provides a streamlined interface for creating agents with MCP tool support and conversation management.
Key features include:
- Native MCP Support: Built-in support for Model Context Protocol servers
- Permission Modes: Control tool execution permissions
- Streaming Responses: Real-time response streaming for interactive applications
- Context Manager: Clean async context management for sessions

## What is the Xero MCP server, and what's possible with it?

The Xero MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Xero account. It provides structured and secure access to your accounting data, so your agent can retrieve contacts, manage connections, update invoices, and monitor quotes automatically on your behalf.
- Connection management: Instantly list all active Xero tenant connections linked to your account, making it easy for your agent to select and operate on the right organization.
- Contact retrieval and lookup: Fetch detailed, up-to-date lists of business contacts including filtering, paging, and incremental updates to keep your records synchronized and actionable.
- Quote management and tracking: Retrieve, filter, or search through your sales quotes so your agent can help you stay on top of prospective business and follow up faster.
- Invoice updating and automation: Modify details of existing invoices—such as amounts, due dates, and line items—allowing your agent to keep your invoicing accurate and up to date without manual edits.

## Supported Tools

| Tool slug | Name | Description |
|---|---|---|
| `XERO_GET_CONNECTIONS` | Get Connections | Tool to list active xero connections. use when you need to retrieve all current tenant connections for the authenticated user. |
| `XERO_GET_CONTACTS` | Get Contacts | Tool to retrieve a list of contacts. use when you need up-to-date contact information with filtering, paging, or incremental updates. |
| `XERO_GET_QUOTES` | Get Quotes | Tool to retrieve a list of quotes. use when you need to list, filter, or page through sales quotes. use after obtaining the tenant id via connections. |
| `XERO_POST_INVOICE_UPDATE` | Update Invoice | Tool to update an existing invoice. use when you need to modify the details of an invoice after it's been created. |

## Supported Triggers

None listed.

## Creating MCP Server - Stand-alone vs Composio SDK

The Xero MCP server is an implementation of the Model Context Protocol that connects your AI agent to Xero. It provides structured and secure access so your agent can perform Xero operations on your behalf through a secure, permission-based interface.
With Composio's managed implementation, you don't have to create your own developer app. For production, if you're building an end product, we recommend using your own credentials. The managed server helps you prototype fast and go from 0-1 faster.

## Step-by-step Guide

### 1. Prerequisites

Before starting, make sure you have:
- Composio API Key and Claude/Anthropic API Key
- Primary know-how of Claude Agents SDK
- A Xero account
- Some knowledge of Python

### 1. Getting API Keys for Claude/Anthropic and Composio

Claude/Anthropic API Key
- Go to the [Anthropic Console](https://console.anthropic.com/settings/organization/api-keys) and create an API key. You'll need credits to use the models.
- Keep the API key safe.
Composio API Key
- Log in to the [Composio dashboard](https://dashboard.composio.dev?utm_source=toolkits&utm_medium=framework_docs).
- Navigate to your API settings and generate a new API key.
- Store this key securely as you'll need it for authentication.

### 2. Install dependencies

No description provided.
```python
pip install composio-anthropic claude-agent-sdk python-dotenv
```

```typescript
npm install @anthropic-ai/claude-agent-sdk @composio/core dotenv
```

### 3. Set up environment variables

Create a .env file in your project root.
What's happening:
- COMPOSIO_API_KEY authenticates with Composio
- USER_ID identifies the user for session management
- ANTHROPIC_API_KEY authenticates with Anthropic/Claude
```bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
ANTHROPIC_API_KEY=your_anthropic_api_key_here
```

### 4. Import dependencies

No description provided.
```python
import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()
```

```typescript
import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

dotenv.config();
```

### 5. Create a Composio instance and Tool Router session

No description provided.
```python
async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Xero
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["xero"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")
```

```typescript
async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

  const composio = new Composio({ apiKey: COMPOSIO_API_KEY });

  // Create Tool Router session for Xero
  const session = await composio.create(USER_ID, {
    toolkits: ['xero'],
  });
  const mcpUrl = session?.mcp.url;
```

### 6. Configure Claude Agent with MCP

No description provided.
```python
# Configure remote MCP server for Claude
options = ClaudeAgentOptions(
    permission_mode="bypassPermissions",
    mcp_servers={
        "composio": {
            "type": "http",
            "url": url,
            "headers": {
                "x-api-key": os.getenv("COMPOSIO_API_KEY")
            }
        }
    },
    system_prompt="You are a helpful assistant with access to Xero tools via Composio.",
    max_turns=10
)
```

```typescript
const options: Options = {
  permissionMode: 'bypassPermissions',
  mcpServers: {
    composio: {
      type: 'http',
      url: mcpUrl,
      headers: { 'x-api-key': COMPOSIO_API_KEY }
    }
  },
  systemPrompt: 'You are a helpful assistant with access to Xero tools via Composio.',
  maxTurns: 10,
};
```

### 7. Create client and start chat loop

No description provided.
```python
# Create client with context manager
async with ClaudeSDKClient(options=options) as client:
    print("\nChat started. Type 'exit' or 'quit' to end.\n")

    # Main chat loop
    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit"}:
            print("Goodbye!")
            break

        # Send query
        await client.query(user_input)

        # Receive and print response
        print("Claude: ", end="", flush=True)
        async for message in client.receive_response():
            if hasattr(message, "content"):
                for block in message.content:
                    if hasattr(block, "text"):
                        print(block.text, end="", flush=True)
        print()
```

```typescript
const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: 'You: '
  });

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}
```

### 8. Run the application

No description provided.
```python
if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())
```

```typescript
try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}
```

## Complete Code

```python
import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()

async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Xero
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["xero"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")

    # Configure remote MCP server for Claude
    options = ClaudeAgentOptions(
        permission_mode="bypassPermissions",
        mcp_servers={
            "composio": {
                "type": "http",
                "url": url,
                "headers": {
                    "x-api-key": os.getenv("COMPOSIO_API_KEY")
                }
            }
        },
        system_prompt="You are a helpful assistant with access to Xero tools via Composio.",
        max_turns=10
    )

    # Create client with context manager
    async with ClaudeSDKClient(options=options) as client:
        print("\nChat started. Type 'exit' or 'quit' to end.\n")

        # Main chat loop
        while True:
            user_input = input("You: ").strip()
            if user_input.lower() in {"exit", "quit"}:
                print("Goodbye!")
                break

            # Send query
            await client.query(user_input)

            # Receive and print response
            print("Claude: ", end="", flush=True)
            async for message in client.receive_response():
                if hasattr(message, "content"):
                    for block in message.content:
                        if hasattr(block, "text"):
                            print(block.text, end="", flush=True)
            print()

if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())
```

```typescript
import 'dotenv/config';
import readline from 'node:readline';
import { Composio } from '@composio/core';
import { query, type Options } from "@anthropic-ai/claude-agent-sdk";

async function chat() {
  const { COMPOSIO_API_KEY, USER_ID } = process.env;
  if (!COMPOSIO_API_KEY || !USER_ID) {
    throw new Error('COMPOSIO_API_KEY and USER_ID required in .env');
  }

  const composio = new Composio({ apiKey: COMPOSIO_API_KEY });
  const session = await composio.create(USER_ID, {
    toolkits: ['xero']
  });
  const mcp_url = session?.mcp.url;

  const options: Options = {
    permissionMode: 'bypassPermissions',
    mcpServers: {
      composio: {
        type: 'http',
        url: mcp_url,
        headers: { 'x-api-key': COMPOSIO_API_KEY }
      }
    },
    systemPrompt: 'You are a helpful assistant with access to Xero tools via Composio.',
    maxTurns: 10,
  };

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: 'You: '
  });

  console.log('\nChat started. Type "exit" to quit.\n');

  let isProcessing = false;

  async function ask(prompt: string) {
    isProcessing = true;
    rl.pause();

    process.stdout.write('Claude is thinking...');
    const stream = query({ prompt, options });

    let firstChunk = true;
    for await (const msg of stream) {
      const content = (msg as any).message?.content || (msg as any).content;
      if (Array.isArray(content)) {
        for (const block of content) {
          if (block.type === 'text' && block.text) {
            if (firstChunk) {
              process.stdout.write('\r\x1b[K');
              process.stdout.write('Claude: ');
              firstChunk = false;
            }
            process.stdout.write(block.text);
          }
        }
      }
    }
    process.stdout.write('\n\n');

    isProcessing = false;
    rl.resume();
    rl.prompt();
  }

  rl.on('line', async (line) => {
    if (isProcessing) return;

    const input = line.trim();
    if (input === 'exit') {
      rl.close();
      process.exit(0);
    }
    if (input) await ask(input);
    else rl.prompt();
  });

  await ask('What can you help me with?');
}

try {
  await chat();
} catch (error) {
  console.error(error);
  process.exit(1);
}
```

## Conclusion

You've successfully built a Claude Agent SDK agent that can interact with Xero through Composio's Tool Router.
Key features:
- Native MCP support through Claude's agent framework
- Streaming responses for real-time interaction
- Permission bypass for smooth automated workflows
You can extend this by adding more toolkits, implementing custom business logic, or building a web interface around the agent.

## How to build Xero MCP Agent with another framework

- [ChatGPT](https://composio.dev/toolkits/xero/framework/chatgpt)
- [OpenAI Agents SDK](https://composio.dev/toolkits/xero/framework/open-ai-agents-sdk)
- [Claude Code](https://composio.dev/toolkits/xero/framework/claude-code)
- [Claude Cowork](https://composio.dev/toolkits/xero/framework/claude-cowork)
- [Codex](https://composio.dev/toolkits/xero/framework/codex)
- [Cursor](https://composio.dev/toolkits/xero/framework/cursor)
- [VS Code](https://composio.dev/toolkits/xero/framework/vscode)
- [OpenCode](https://composio.dev/toolkits/xero/framework/opencode)
- [OpenClaw](https://composio.dev/toolkits/xero/framework/openclaw)
- [Hermes](https://composio.dev/toolkits/xero/framework/hermes-agent)
- [CLI](https://composio.dev/toolkits/xero/framework/cli)
- [Google ADK](https://composio.dev/toolkits/xero/framework/google-adk)
- [LangChain](https://composio.dev/toolkits/xero/framework/langchain)
- [Vercel AI SDK](https://composio.dev/toolkits/xero/framework/ai-sdk)
- [Mastra AI](https://composio.dev/toolkits/xero/framework/mastra-ai)
- [LlamaIndex](https://composio.dev/toolkits/xero/framework/llama-index)
- [CrewAI](https://composio.dev/toolkits/xero/framework/crew-ai)

## Related Toolkits

- [Stripe](https://composio.dev/toolkits/stripe) - Stripe is a global online payments platform offering APIs for managing payments, customers, and subscriptions. Trusted by businesses for secure, efficient, and scalable payment processing worldwide.
- [Alpha vantage](https://composio.dev/toolkits/alpha_vantage) - Alpha Vantage is a financial data platform offering real-time and historical stock market APIs. Get instant, reliable access to equities, forex, and technical analysis data for smarter trading decisions.
- [Altoviz](https://composio.dev/toolkits/altoviz) - Altoviz is a cloud-based billing and invoicing platform for businesses. It streamlines online payments, expense tracking, and customizable invoice management.
- [Benzinga](https://composio.dev/toolkits/benzinga) - Benzinga provides real-time financial news and data APIs for market coverage. It helps you track breaking news and actionable market insights instantly.
- [Brex](https://composio.dev/toolkits/brex) - Brex provides corporate credit cards and spend management tailored for startups and tech businesses. It helps optimize company cash flow, streamline accounting, and accelerate business growth.
- [Chaser](https://composio.dev/toolkits/chaser) - Chaser is accounts receivable automation software that sends invoice reminders and helps businesses get paid faster. It streamlines the collections process to save time and improve cash flow.
- [Clientary](https://composio.dev/toolkits/clientary) - Clientary is a platform for managing clients, invoices, projects, proposals, and more. It streamlines client work and saves you serious admin time.
- [Coinbase](https://composio.dev/toolkits/coinbase) - Coinbase is a platform for buying, selling, and storing cryptocurrency. It makes exchanging and managing crypto simple and secure for everyone.
- [Coinranking](https://composio.dev/toolkits/coinranking) - Coinranking is a comprehensive cryptocurrency market data platform offering access to real-time coin prices, market caps, and historical data. Get accurate, up-to-date stats for thousands of digital assets in one place.
- [Coupa](https://composio.dev/toolkits/coupa) - Coupa is a business spend management platform for procurement, invoicing, and expenses. It helps organizations streamline purchasing, control costs, and gain complete visibility over financial operations.
- [CurrencyScoop](https://composio.dev/toolkits/currencyscoop) - CurrencyScoop is a developer-friendly API for real-time and historical currency exchange rates. Easily access fiat and crypto data for smart, up-to-date financial applications.
- [Daffy](https://composio.dev/toolkits/daffy) - Daffy is a modern charitable giving platform with a donor-advised fund. Easily set aside funds, grow them tax-free, and donate to over 1.7 million U.S. charities.
- [Eagle doc](https://composio.dev/toolkits/eagle_doc) - Eagle doc is an AI-powered OCR API for invoices and receipts. It delivers fast, reliable, and accurate document data extraction for seamless automation.
- [Elorus](https://composio.dev/toolkits/elorus) - Elorus is an online invoicing and time-tracking software for freelancers and small businesses. Easily manage finances, bill clients, and track work in one place.
- [Eodhd apis](https://composio.dev/toolkits/eodhd_apis) - Eodhd apis delivers comprehensive financial data, including live and historical stock prices, via robust APIs. Easily access reliable, up-to-date market insights to power your apps, dashboards, and analytics.
- [Fidel api](https://composio.dev/toolkits/fidel_api) - Fidel api is a secure platform for linking payment cards to web and mobile apps. It enables real-time card transaction monitoring and event-based automation for businesses.
- [Finage](https://composio.dev/toolkits/finage) - Finage is a secure API platform delivering real-time and historical financial data for stocks, forex, crypto, indices, and commodities. It empowers developers and businesses to access, analyze, and act on market data instantly.
- [Finmei](https://composio.dev/toolkits/finmei) - Finmei is an invoicing tool that simplifies billing, invoice management, and expense tracking. Ideal for automating and organizing your business finances in one place.
- [Fixer](https://composio.dev/toolkits/fixer) - Fixer is a currency data API offering real-time and historical exchange rates for 170 currencies. Instantly access accurate, up-to-date forex data for your applications and workflows.
- [Fixer io](https://composio.dev/toolkits/fixer_io) - Fixer.io is a lightweight API for real-time and historical foreign exchange rates. It makes global currency conversion fast, accurate, and hassle-free.

## Frequently Asked Questions

### What are the differences in Tool Router MCP and Xero MCP?

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.

### Can I use Tool Router MCP with Claude Agent SDK?

Yes, you can. Claude Agent SDK 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.

### Can I manage the permissions and scopes for Xero while using Tool Router?

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.

### How safe is my data with Composio Tool Router?

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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