How to connect Xero MCP with VS Code

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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.

Supported Tools & Triggers

Tools
Create Bank TransactionCreate a bank transaction in Xero.
Create ContactCreate a new contact in Xero.
Create InvoiceCreate a new invoice in Xero.
Create ItemCreate an inventory item in Xero.
Create Manual JournalCreate one or more manual journals (journal entries) in Xero with journal lines.
Create PaymentCreate a payment in Xero to link an invoice with a bank account transaction.
Create Purchase OrderCreate a purchase order in Xero to order goods/services from suppliers.
Get AccountRetrieve a specific account from Xero's chart of accounts by its unique ID.
Get AssetRetrieve a specific asset by ID from Xero.
Get Balance Sheet ReportRetrieve Balance Sheet report from Xero.
Get BudgetRetrieve a budget from Xero.
Get ConnectionsTool to list active Xero connections.
Get ContactsTool to retrieve a list of contacts.
Get InvoiceRetrieve a specific invoice by ID from Xero.
Get ItemRetrieve a specific item by ID from Xero.
Get Manual JournalRetrieve a specific manual journal by ID from Xero.
Get OrganisationRetrieve organisation details from Xero.
Get Profit & Loss ReportRetrieve Profit & Loss report from Xero.
Get ProjectRetrieve a specific project by ID from Xero.
Get Purchase OrderRetrieve a specific purchase order by ID from Xero.
Get QuotesTool to retrieve a list of quotes.
Get Trial Balance ReportRetrieve Trial Balance report from Xero.
List AccountsRetrieve chart of accounts from Xero.
List AssetsRetrieve fixed assets from Xero.
List AttachmentsList all attachments for a specific entity in Xero (invoice, contact, etc.
List Bank TransactionsRetrieve bank transactions from Xero.
List Credit NotesRetrieve list of credit notes from Xero.
List FilesRetrieve files from Xero Files.
List FoldersRetrieve folders from Xero Files.
List InvoicesRetrieve a list of invoices from Xero.
List ItemsRetrieve items (inventory/products) from Xero.
List JournalsRetrieve journals from Xero.
List Manual JournalsRetrieve manual journals from Xero.
List PaymentsRetrieve list of payments from Xero.
List ProjectsRetrieve projects from Xero.
List Purchase OrdersRetrieve list of purchase orders from Xero.
List Tax RatesRetrieve tax rates from Xero.
List Tracking CategoriesRetrieve tracking categories from Xero.
Update InvoiceTool to update an existing invoice.
Update ContactUpdate an existing contact in Xero.
Upload AttachmentUpload a file attachment to a Xero entity (invoice, contact, etc.

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.

How to build Xero MCP Agent with another framework

FAQ

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 VS Code?

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.

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.

Used by agents from

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Context
Letta
glean
HubSpot
Agent.ai
Altera
DataStax
Entelligence
Rolai
Context
Letta
glean
HubSpot
Agent.ai
Altera
DataStax
Entelligence
Rolai

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