Manage Accounting Skill

Integrates with Xero to provide complete financial intelligence - the foundation for autonomous business management and CEO briefings.

Core Responsibilities

1. •Sync Xero Transactions: Fetch and sync bank/credit card transactions from Xero
2. •Auto-Categorize Expenses: Intelligently categorize transactions (80%+ accuracy target)
3. •Generate Invoices: Create professional invoices via Xero API
4. •Bank Reconciliation: Match transactions with invoices and payments
5. •Financial Reporting: Update Dashboard with revenue, expenses, cash flow
6. •Cost Optimization: Identify duplicate subscriptions and unused services

When This Skill Activates

Trigger phrases:

• •"sync accounting"
• •"update xero"
• •"categorize expenses"
• •"create invoice"
• •"financial summary"
• •"reconcile transactions"
• •"check revenue"
• •"expense report"
• •"subscription audit"

Auto-activates when:

• •Scheduled daily sync (e.g., 6:00 AM)
• •New transactions detected in Xero
• •CEO briefing generation needs financial data
• •User requests financial status

Core Workflow

Phase 1: Xero Transaction Sync

When: Daily at 6:00 AM or on-demand

1. •

   Connect to Xero via MCP Server

   • •Verify Xero MCP server running
   • •Check OAuth2 token valid (refresh if needed)
   • •Test connection to Xero API
2. •

   Fetch New Transactions

   • •Get bank/credit card transactions from last sync
   • •Query invoices (sent and received)
   • •Retrieve payment records
   • •Pull contact/vendor information
3. •

   Write to Vault

   • •Update Vault/Accounting/Current_Month.md with new transactions
   • •Create individual transaction files in Vault/Accounting/Transactions/
   • •Filename format: TRANS_YYYY-MM-DD_[Description].md
   • •Include metadata: date, amount, vendor, category (if already categorized in Xero)
4. •

   Update Dashboard

   • •Add sync timestamp to Vault/Dashboard.md
   • •Include transaction count (new expenses, new revenue)
   • •Flag any sync errors

Helper Script:

python .claude/skills/manage-accounting/scripts/xero_sync.py [--date-range YYYY-MM-DD:YYYY-MM-DD]

See reference/reconciliation-guide.md for detailed sync procedures.

Phase 2: Expense Categorization

When: After sync or when uncategorized transactions detected

1. •

   Identify Uncategorized Transactions

   • •Scan Vault/Accounting/Transactions/ for transactions missing category
   • •Check Vault/Accounting/Current_Month.md for uncategorized items
   • •Priority: Expenses first (revenue usually clear)
2. •

   Auto-Categorize Using Rules

   • •Load expense-rules.md
   • •Apply pattern matching (vendor name, description, amount patterns)
   • •Check against xero-categories.md for valid categories
   • •Use tax-categories.md for tax treatment
3. •

   Categorization Logic (80%+ Accuracy Target)

   • •Subscription Services: Match vendor name against known subscriptions
     • •Adobe, Netflix, Spotify, GitHub, AWS, etc.
     • •Category: "Software & Subscriptions" or "Marketing & Advertising"
   • •Recurring Payments: Identify by amount consistency + vendor
   • •Office Supplies: Match vendors like Staples, Amazon Business
   • •Professional Services: Contractors, consultants (look for invoice references)
   • •Travel & Meals: Airlines, hotels, restaurants (check tax deductibility)
4. •

   Update Xero via MCP

   • •For high-confidence categorizations (>90%), update directly in Xero
   • •For medium-confidence (70-90%), create approval request
   • •For low-confidence (<70%), flag for manual review
5. •

   Update Transaction Files

   • •Add category to transaction metadata
   • •Include confidence score
   • •Log categorization reasoning
6. •

   Handle Uncertain Transactions

   • •Create review file in Vault/Accounting/Needs_Review/
   • •Include similar past transactions for reference
   • •Suggest 2-3 possible categories with reasoning

Helper Script:

python .claude/skills/manage-accounting/scripts/categorize_expense.py [--transaction-id ID] [--dry-run]

See expense-rules.md for complete categorization logic.

Phase 3: Invoice Generation

When: User requests invoice or client payment needed

1. •

   Gather Invoice Details

   • •Check request for: client name, amount, description, date
   • •Look up client contact in Xero
   • •Reference Vault/Business_Goals.md for rates/pricing
   • •Use invoice-templates.md
2. •

   Validate Information

   • •Confirm client exists in Xero contacts
   • •Verify amount matches agreed rate/scope
   • •Check for duplicate invoices (prevent re-billing)
   • •Ensure all required fields present
3. •

   Create Approval Request

   • •ALWAYS require approval for invoices
   • •Use handle-approval skill to create approval request
   • •Include:
     • •Client name and contact
     • •Invoice amount (line items)
     • •Due date
     • •Payment terms
     • •Preview of invoice (text format)
   • •Save approval request in Vault/Pending_Approval/
4. •

   Execute After Approval

   • •Once moved to Vault/Approved/, generate invoice in Xero
   • •Use Xero MCP to create invoice
   • •Capture invoice number and URL
   • •Optionally send invoice via email (separate approval)
5. •

   Update Records

   • •Save invoice copy to Vault/Accounting/Invoices/INV_[Number]_[Client].pdf
   • •Log to Vault/Accounting/Current_Month.md
   • •Update Dashboard with invoice sent
   • •Track invoice status (unpaid, paid, overdue)

Helper Script:

python .claude/skills/manage-accounting/scripts/generate_invoice.py --client "Client Name" --amount 1500 --description "Services rendered"

See invoice-templates.md for template options.

Phase 4: Bank Reconciliation

When: Weekly or before CEO briefing generation

1. •

   Match Transactions

   • •Compare bank transactions with Xero invoices
   • •Identify payments received (match invoice amounts)
   • •Flag missing payments (overdue invoices)
   • •Detect unexpected transactions
2. •

   Reconcile Expenses

   • •Match expense transactions with receipts/approvals
   • •Verify categorizations against bank statements
   • •Identify discrepancies
3. •

   Generate Reconciliation Report

   • •Summary: Total reconciled vs unreconciled
   • •List unmatched transactions
   • •Overdue invoices report
   • •Discrepancies flagging for review
4. •

   Update Dashboard

   • •Add reconciliation status to Vault/Dashboard.md
   • •Include outstanding items count
   • •Flag high-priority discrepancies

See reconciliation-guide.md for detailed procedures.

Phase 5: Financial Reporting & Cost Optimization

When: Daily dashboard update or CEO briefing generation

1. •

   Calculate Financial Metrics

   • •Revenue:
     • •This week revenue
     • •Month-to-date (MTD)
     • •vs target from Vault/Business_Goals.md
   • •Expenses:
     • •Weekly expenses by category
     • •MTD expenses
     • •vs budget targets
   • •Cash Flow:
     • •Revenue - Expenses
     • •Trend (improving/declining)
   • •Outstanding:
     • •Unpaid invoices total
     • •Overdue invoices (>30 days)
2. •

   Subscription Audit (Cost Optimization)

   • •Identify recurring subscriptions from expense patterns
   • •Check usage (cross-reference with other data sources if available)
   • •Flag potential savings:
     • •No usage in 30+ days
     • •Duplicate functionality with other tools
     • •Cost increased >20% without notification
   • •Generate recommendation for cancellation or negotiation
3. •

   Update Dashboard

   • •Add financial summary section to Vault/Dashboard.md
   • •Format:
     markdown

     ## Financial Summary (Updated: YYYY-MM-DD HH:MM)
     - **Revenue MTD**: $X,XXX (XX% of $X,XXX target)
     - **Expenses MTD**: $X,XXX (XX% of $X,XXX budget)
     - **Cash Flow**: +/- $X,XXX
     - **Outstanding**: $X,XXX (X invoices)
     - **Alert**: [Any overdue invoices or unusual expenses]
     

4. •

   Proactive Recommendations

   • •If cost optimization opportunity detected, add to Dashboard
   • •Example: "Notion: No activity 45 days. Cost: $15/mo → Annual savings: $180"
   • •Create note in Vault/Accounting/Recommendations/

Security Safeguards

Before Syncing:

• •✅ Xero MCP server authenticated
• •✅ OAuth2 token valid
• •✅ Network connection stable
• •✅ Vault backup exists

Before Categorizing:

• •✅ Transaction not already categorized
• •✅ Category exists in Xero chart of accounts
• •✅ Confidence threshold met (or approval requested)
• •✅ Tax treatment correct

Before Creating Invoice:

• •✅ ALWAYS require approval (no auto-invoicing)
• •✅ Client exists in Xero
• •✅ Amount validated against rate sheet
• •✅ No duplicate invoice exists
• •✅ All required fields populated

Never Auto-Execute:

• •❌ Invoice generation (always requires approval)
• •❌ Invoice sending (requires separate approval)
• •❌ Payment processing
• •❌ Subscription cancellations (recommend only)
• •❌ Deleting transactions

Reference Files

Progressive disclosure - load on demand:

1. •

   xero-categories.md

   • •Standard Xero chart of accounts
   • •Category hierarchy
   • •When to use each category
   • •Tax implications per category
2. •

   expense-rules.md

   • •Auto-categorization rules (vendor patterns)
   • •Confidence scoring logic
   • •Special cases and exceptions
   • •Rule priority order
3. •

   invoice-templates.md

   • •Standard invoice templates
   • •Template selection logic
   • •Required fields per template
   • •Customization options
4. •

   reconciliation-guide.md

   • •Step-by-step reconciliation process
   • •Matching algorithms
   • •Discrepancy handling
   • •Reporting format
5. •

   tax-categories.md

   • •Tax treatment by expense type
   • •Deductible vs non-deductible
   • •GST/VAT handling
   • •Documentation requirements

Helper Scripts

xero_sync.py

Purpose: Fetch transactions from Xero and update Vault

Usage:

# Sync today's transactions
python .claude/skills/manage-accounting/scripts/xero_sync.py

# Sync specific date range
python .claude/skills/manage-accounting/scripts/xero_sync.py --date-range 2026-01-01:2026-01-11

# Dry run (preview without writing)
python .claude/skills/manage-accounting/scripts/xero_sync.py --dry-run

# JSON output
python .claude/skills/manage-accounting/scripts/xero_sync.py --json

categorize_expense.py

Purpose: Auto-categorize transactions using pattern matching

Usage:

# Categorize all uncategorized transactions
python .claude/skills/manage-accounting/scripts/categorize_expense.py

# Categorize specific transaction
python .claude/skills/manage-accounting/scripts/categorize_expense.py --transaction-id TX123

# Dry run (preview categorizations)
python .claude/skills/manage-accounting/scripts/categorize_expense.py --dry-run

# Lower confidence threshold (more aggressive)
python .claude/skills/manage-accounting/scripts/categorize_expense.py --threshold 0.7

generate_invoice.py

Purpose: Generate invoice draft for approval

Usage:

# Create invoice approval request
python .claude/skills/manage-accounting/scripts/generate_invoice.py \
  --client "Client A" \
  --amount 1500 \
  --description "Consulting services - January 2026"

# Use specific template
python .claude/skills/manage-accounting/scripts/generate_invoice.py \
  --client "Client B" \
  --amount 2500 \
  --template "project-based"

# Include line items from file
python .claude/skills/manage-accounting/scripts/generate_invoice.py \
  --client "Client C" \
  --line-items-file Vault/Projects/ClientC/invoice_items.json

Integration with Other Skills

Skills that use manage-accounting:

• •generate-ceo-briefing → Reads financial data for weekly business audit
• •handle-approval → Executes approved invoices
• •monitor-system → Checks Xero sync health

Provides data to:

• •Vault/Dashboard.md → Financial summary section
• •Vault/Briefings/ → Revenue/expense data for CEO reports
• •Vault/Accounting/ → Complete financial records

Workflow:

1. Daily 6:00 AM: xero_sync.py runs automatically
2. New transactions → categorize_expense.py auto-categorizes
3. High-confidence → Update Xero directly
4. Low-confidence → Create review file
5. User requests invoice → generate_invoice.py creates approval
6. Approval granted → Create invoice in Xero
7. Weekly: Reconciliation + cost optimization analysis
8. Sunday: Financial data fed to generate-ceo-briefing

Dashboard Logging

All accounting activity logged to Vault/Dashboard.md:

### [Timestamp] - Accounting Activity

**Xero Sync:**
- Synced: X transactions (X expenses, X revenue)
- Date range: YYYY-MM-DD to YYYY-MM-DD
- Status: Success/Errors

**Expense Categorization:**
- Categorized: X transactions
- Confidence: High (X), Medium (X), Low (X)
- Pending review: X transactions

**Invoice Created:**
- Client: [Client Name]
- Amount: $X,XXX
- Status: Pending Approval
- File: Vault/Pending_Approval/APPROVAL_INVOICE_[...]

**Financial Summary:**
- Revenue MTD: $X,XXX (XX% of target)
- Expenses MTD: $X,XXX
- Cash Flow: +/- $X,XXX
- Outstanding: $X,XXX

**Cost Optimization:**
- Recommendation: [Subscription/service to cancel]
- Potential Savings: $X/month ($X/year)

Success Criteria

This skill works correctly when:

✅ Daily Xero sync runs automatically (99%+ success rate) ✅ Transactions correctly synced to Vault ✅ 80%+ auto-categorization accuracy ✅ All invoices require and receive approval ✅ Invoices successfully created in Xero after approval ✅ Financial dashboard updated daily with accurate metrics ✅ Cost optimization recommendations relevant and actionable ✅ Reconciliation reports generated weekly ✅ Zero unauthorized financial actions ✅ Complete audit trail maintained

Common Issues

Xero MCP Connection Failed:

• •Check MCP server running: ps aux | grep xero-mcp
• •Verify OAuth2 token not expired
• •Test connection: python scripts/xero_sync.py --test-connection
• •Re-authenticate if needed

Categorization Low Accuracy (<80%):

• •Review and update expense-rules.md
• •Add vendor-specific patterns
• •Check Xero categories match xero-categories.md
• •Adjust confidence threshold if too conservative

Invoice Generation Failed:

• •Verify client exists in Xero contacts
• •Check all required fields present
• •Ensure no duplicate invoice number
• •Review Xero API error logs

Sync Not Running Daily:

• •Check cron job / Task Scheduler configuration
• •Verify orchestrator.py scheduling working
• •Check system logs for errors
• •Ensure Xero API rate limits not exceeded

Reconciliation Discrepancies:

• •Verify transaction dates match bank statement
• •Check for manual entries in Xero
• •Review transaction matching rules
• •Ensure all transactions synced

External Dependencies

Required:

• •Xero account with API access
• •Xero MCP Server installed and configured
• •OAuth2 credentials configured in Claude Code
• •handle-approval skill operational

Optional:

• •Bank account API for enhanced reconciliation
• •Receipt scanning for expense verification

Setup Checklist

Before first use:

• • Xero account created and configured
• • Xero MCP Server installed: npm install -g @xeroapi/xero-mcp-server
• • OAuth2 credentials obtained from Xero Developer Portal
• • MCP server added to Claude Code config (.config/claude-code/mcp.json)
• • Test connection successful
• • Vault folders created: Accounting/, Accounting/Transactions/, Accounting/Invoices/, Accounting/Expenses/
• • Vault/Business_Goals.md includes financial targets
• • expense-rules.md customized for your business
• • xero-categories.md matches your Xero chart of accounts
• • Daily sync scheduled (cron/Task Scheduler)

Skill Version: 1.0 Last Updated: 2026-01-11 Branch: feat/gold-accounting-xero Dependencies: handle-approval, Xero MCP Server