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Working inside Xero Payroll: what LedgerBPO does
Xero Payroll bookkeeping services from LedgerBPO give UK and Australian businesses a named accountant who prepares each pay run in Xero under your authority, checks the payroll journal that Xero posts automatically, and reconciles PAYE, pension, PAYG withholding and superannuation liabilities to the bank. You or your agent files; we keep the ledger tied to every submission.
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Your subscription, your data
Xero Payroll bookkeeping services from LedgerBPO give UK and Australian businesses a named accountant who prepares each pay run in Xero under your authority, checks the payroll journal that Xero posts automatically, and reconciles PAYE, pension, PAYG withholding and superannuation liabilities to the bank. You or your agent files; we keep the ledger tied to every submission.
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Inside your file
Pay runs prepared in Xero Payroll and approved by you
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Reconciled on a calendar
Automatic payroll journals checked and liabilities reconciled monthly
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Reviewed before you see it
RTI and STP submissions tied to the ledger before filing
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Why businesses on Xero Payroll outsource
Xero Payroll posts its own journal the moment a pay run is filed, which is convenient and easy to misread. Wages, PAYE or PAYG withholding, pensions and superannuation land in the accounts Xero was told to use at setup, and few businesses revisit those settings. Leave accruals, timesheet imports and back-pay corrections then push the liabilities out of line with what is actually owed.
Outsourcing puts one accountant on the whole cycle. We prepare the run, check the journal, reconcile the liability accounts to the HMRC or ATO position, and confirm pension or super payments cleared. Australian clients get the same care on STP Phase 2 reporting and Payday Super from 1 July 2026. You stay in Xero and keep approval of every pay run.
What we do inside Xero Payroll
Pay run preparation
We add timesheets, leave, overtime and adjustments in Xero Payroll and send you the draft run to approve before payday.
Payroll journal review
Xero posts a journal automatically from the payroll settings. We check the wages, tax and liability accounts every run and correct the mapping when a new pay item appears.
RTI and STP tie-out
Full Payment Submissions to HMRC and Single Touch Payroll reports to the ATO are tied to the ledger before you or your agent files them.
Pension and superannuation reconciliation
Auto-enrollment contributions in the UK and Auto Super batches in Australia are matched to the payments that left the bank.
Leave and entitlement checks
Annual leave, sick leave and long service balances in Xero are reviewed quarterly so accruals on the balance sheet are supportable.
Year-end payroll reports
P60s and P11D data in the UK, and STP finalization in Australia, are reconciled to the wages accounts before they are issued.
Integrations we reconcile
- XeroPayroll journals, liability accounts and bank matches in the same ledger.
- GustoUS Xero users run payroll through Gusto; we post and reconcile those journals.
- Employment Hero Payroll (KeyPay)Award-heavy Australian employers who run payroll here and post journals to Xero.
- DeputyApproved timesheets imported into Xero Payroll and checked against the draft run.
- HubdocPension and super provider statements captured for monthly liability matching.
Migration to and from Xero Payroll
Moving to Xero Payroll
Moving to Xero Payroll partway through a tax year means opening balances per employee must be entered so year-end figures are complete. We collect the final payroll reports from the previous system, load year-to-date pay, tax and pension or super figures, confirm the last submission the old provider made, and run the first Xero pay run in parallel.
Moving from Xero Payroll
Leaving Xero Payroll for Employment Hero, ADP or another provider follows the same steps in reverse. We export the payroll activity and employee summary reports, agree the final pay run Xero will report, hand year-to-date balances to the new system, and reconcile the outstanding PAYE, PAYG and super liabilities so they close cleanly on the switch date.
Common Xero Payroll reconciliation problems we fix
Payroll journal posts to the wrong accounts
A pay item added later often defaults to a generic wages account. We review the payroll settings each month so directors' pay, allowances and deductions land where they belong.
PAYG or PAYE liability does not match the tax office
Corrections filed after a pay run leave the ledger and the HMRC or ATO account out of step. We reconcile the liability to the online account every month.
Super or pension paid late
Contributions are due on fixed timetables, and late payment has consequences in both countries. We track each batch from pay run to bank clearance.
Leave balances overstated
Unrecorded leave taken and wrong accrual rates inflate the leave liability. We reconcile balances to approved leave requests every quarter.
STP or RTI filed from an unapproved run
A pay run posted before final changes creates an amended submission. We hold filing until you have approved the run.
Other payroll platforms
Frequently asked questions
Do you work inside my existing Xero Payroll account?
Yes. You add us as a payroll admin in your own Xero organization, and you keep the subscription, the bank feed and approval of every pay run. We prepare the run and reconcile the accounts; you or your registered agent submits to HMRC or the ATO.
How much does Xero Payroll bookkeeping support cost?
Pricing depends on volume and scope, so we send a custom quote within 1 business day. Employee count, pay frequency, the number of awards or pension schemes, and whether monthly bookkeeping in Xero is bundled with payroll are the factors that move the quote.
Who submits STP or RTI?
You do, or your registered agent does, from the pay run we have prepared and you have approved. We run payroll under your authority and post the journals. In Australia we prepare workpapers for your TPB-registered BAS agent or accountant; we do not lodge BAS.
Are you ready for Payday Super in Australia?
Yes. From 1 July 2026 superannuation must be paid with each pay run rather than quarterly. We set up Auto Super batches to run with every pay cycle and reconcile each batch to the bank so nothing is missed. Our AU payroll and super service explains the process.
Can you fix payroll accounts that have never been reconciled?
Yes. We rebuild the wages, PAYE or PAYG, and pension or super liability accounts from Xero payroll reports and bank statements, post correcting journals, and hand a clean balance to the monthly service. The payroll reconciliation service covers this work.
Does this cover Xero users in the US?
Xero does not run payroll itself in the US; Xero users there typically run payroll through Gusto and sync the journals into Xero. We support that set-up from our Gusto page and reconcile the resulting journals in Xero the same way.
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