How to Add Bank Details to Xero Invoice

Introduction

At Towerstone Accountants we provide specialist limited company accountancy services for directors and owner managed businesses across the UK. We created this webpage for business owners who want practical guidance on choosing and using accounting software, including day to day bookkeeping tasks, invoicing, bank feeds, and reporting. Our aim is to help you keep accurate records, reduce admin time, and stay compliant with HMRC and Companies House requirements.

One of the most common questions I hear from new Xero users is surprisingly simple, how do I add my bank details to an invoice so customers know how to pay me. It sounds obvious, yet in practice this step is often missed, especially by new businesses or directors setting things up for the first time. The result is predictable, invoices get sent out, customers have to ask for bank details, payments are delayed, and cash flow suffers for no good reason.

Xero is designed to make invoicing and getting paid straightforward, but like most accounting software it gives you flexibility. That flexibility means there is more than one way to add bank details, and choosing the right approach depends on how you invoice, how many bank accounts you have, and how consistent you want your setup to be.

In this guide, I am going to walk you through how to add bank details to a Xero invoice properly. I will explain the different methods available, when each one makes sense, and the common mistakes I see that stop bank details from appearing where people expect them to. This is written from a real world UK business perspective, based on how Xero is actually used day to day by our clients.

What Xero does with bank details on invoices

Before looking at the steps, it helps to understand how Xero handles bank details in the background.

Xero does not automatically assume which bank account you want customers to pay into. Instead, it allows you to:

• Add bank details at an organisation level
• Link specific bank accounts to invoices
• Display different details on different invoices

This is useful if you have more than one bank account, but it also means you need to be deliberate about how you set things up.

Xero itself is developed by Xero and the invoicing system is built around flexibility rather than fixed assumptions.

The most common reason bank details do not show

Before we get into the step by step process, it is worth addressing the most common issue I see.

In the majority of cases where bank details are missing from invoices, the problem is not that they were entered incorrectly. It is that:

• The bank account is not marked as the default for sales invoices
• The invoice was created before the bank account was added
• The wrong invoice theme is being used

Keeping these points in mind will save you time if things do not look right straight away.

Method one, adding bank details via a Xero bank account

This is the most reliable and recommended method for most businesses.

If your bank account is set up properly in Xero, you can tell Xero to pull those details directly onto your invoices.

Step one, check your bank account is added to Xero

First, make sure your bank account exists in Xero.

You do this by:

• Logging into Xero
• Going to Accounting
• Selecting Bank accounts

If your bank account is already listed, you can move to the next step.

If it is not listed, you will need to add it by:

• Clicking Add Bank Account
• Choosing your bank
• Entering the account name
• Entering the sort code
• Entering the account number

You do not need to connect the bank feed to add bank details to invoices, although most businesses choose to do both.

Step two, mark the bank account as the default for sales invoices

This is the step that is most often missed.

Once your bank account is added:

• Go to Accounting
• Select Bank accounts
• Click on the relevant bank account
• Choose Edit account details

You will see an option to mark the account as the default for sales invoices.

When this box is ticked, Xero knows that this is the account you want customers to pay into unless you specify otherwise.

Without this step, bank details may exist in Xero but not appear on invoices automatically.

Step three, check the invoice payment settings

Next, you need to confirm that your invoice settings are set to display payment information.

To do this:

• Go to Business
• Select Invoices
• Open any existing invoice or create a new one

On the invoice screen, look for the payment section, usually at the bottom.

You should see wording such as:

• Please pay by bank transfer
• Account name
• Sort code
• Account number

If the bank account is marked correctly, these details should appear automatically.

Method two, adding bank details through invoice settings

Xero also allows you to manage payment details centrally through invoice settings.

This method is useful if you want to review or standardise how payment instructions appear.

Step one, go to invoice settings

To access invoice settings:

• Click the organisation name in the top left
• Go to Settings
• Select Invoice settings

Here you can see how invoices are structured and what information they display.

Step two, review payment details

Within invoice settings, look for the section relating to payment instructions or bank details.

Depending on your setup, Xero may:

• Pull bank details from the default bank account
• Allow manual entry of payment information

For most businesses, pulling details from the bank account is the cleaner option, as it reduces duplication and errors.

Method three, adding bank details directly to an individual invoice

This method is not ideal for long term use, but it can be useful in specific situations.

For example:

• You need payment to go to a different account
• You are issuing a one off invoice
• You are correcting a single invoice quickly

How to do this on an invoice

When creating or editing an invoice:

• Scroll to the payment section at the bottom
• Look for the option to edit payment details
• Manually enter the bank name
• Enter the sort code
• Enter the account number

This will override the default settings for that invoice only.

The downside of this approach is that it relies on manual entry, which increases the risk of mistakes and inconsistency.

Choosing the right approach in practice

In our experience at Towerstone, the best setup for most businesses is:

• Add the main business bank account in Xero
• Mark it as the default for sales invoices
• Let Xero populate invoices automatically

This ensures consistency, reduces errors, and saves time.

Manual entry should be the exception rather than the rule.

What if you have multiple bank accounts

Some businesses operate more than one bank account.

For example:

• A main trading account
• A separate tax account
• A client money account

In these cases, Xero still works well, but you need to be clear about which account is used for invoices.

You can:

• Set one account as the default
• Change the bank account on specific invoices where needed

The key is to avoid confusion for customers. Most customers expect to see the same payment details each time.

Adding bank details to repeating invoices

If you use repeating invoices, it is important to check that bank details are correct on the template.

Repeating invoices will:

• Use the bank account settings in place when they were created
• Not always update automatically if settings change later

If you update your bank details or default account, it is good practice to:

• Review existing repeating invoices
• Edit and resave them if necessary

This avoids situations where old bank details continue to be sent out.

Invoice themes and bank details

Xero uses invoice themes to control how invoices look.

If bank details are not showing, the issue may be the invoice theme rather than the bank account.

To check this:

• Go to Settings
• Select Invoice settings
• Open Invoice themes

Edit the theme you are using and check that the payment section is included.

Some customised themes hide or reposition bank details, which can make it look like they are missing.

Testing before sending invoices

One of the simplest habits to adopt is testing.

Before sending invoices to customers:

• Preview the invoice
• Scroll to the payment section
• Confirm bank details are visible and correct

This takes seconds and prevents awkward follow up emails asking for payment information.

What customers see on emailed invoices

When you email an invoice from Xero, customers typically see:

• The invoice as a PDF
• Payment instructions at the bottom
• Any additional payment methods enabled

If you have also enabled online payment options, such as card payments, these may appear alongside bank transfer details.

The bank details remain important even when card payments are enabled, as many customers still prefer bank transfer.

Common mistakes I see in practice

Based on day to day experience, the most common issues are:

• Bank account added but not set as default
• Invoice created before bank account setup
• Using the wrong invoice theme
• Multiple bank accounts causing confusion
• Manually edited invoices with missing details

Almost all of these are easy to fix once you know where to look.

How this affects cash flow

It is worth stating the obvious, invoices without bank details get paid more slowly.

Every extra step you create for a customer:

• Increases friction
• Increases delay
• Increases the chance of non payment

Making bank details clear and consistent is one of the simplest ways to improve cash flow without changing prices or chasing harder.

Relationship with HMRC and compliance

From a tax and compliance point of view, adding bank details to invoices has no direct impact on HMRC.

VAT and income reporting are handled separately and are administered by HM Revenue and Customs.

However, clear invoices support:

• Better record keeping
• Clear audit trails
• Faster reconciliation

Which indirectly makes compliance easier.

Why we recommend this setup to Towerstone clients

At Towerstone, we recommend that clients:

• Add their main bank account to Xero
• Mark it as the default for sales invoices
• Avoid manual entry wherever possible

This is not because it is the only way, but because it results in:

• Fewer mistakes
• Faster payments
• Cleaner bookkeeping
• Easier year end work

Most of the clients we onboard already use Xero, and this setup aligns with how the majority of them operate successfully.

What to do if things still do not look right

If you have followed the steps and bank details still do not appear:

• Check the invoice theme
• Check which bank account is marked as default
• Check whether the invoice was created before the change
• Preview the invoice carefully

If needed, Xero’s support team is genuinely excellent and usually resolves issues quickly, which is one of the reasons we are comfortable recommending the platform.

Final thoughts

Adding bank details to a Xero invoice is not complicated, but it does require understanding where Xero pulls that information from. In most cases, the solution is simply setting the correct bank account as the default for sales invoices and letting Xero do the rest.

In my professional opinion, this is one of those small setup tasks that has a disproportionate impact. Get it right once, and every invoice you send works harder for you. Get it wrong, and you introduce unnecessary delays into your cash flow for no benefit at all.

With the right setup, Xero makes invoicing and getting paid simple, clear, and consistent, which is exactly what most small businesses need.

You may also find our guidance on how to email invoices from quickbooks and how to reconcile in xero helpful when exploring related accounting software tasks. For a broader overview of software options and setup guidance, you can visit our accounting software hub.