HOW-TO

How to set up a new supplier safely in Xero

Short answer

Before the first bill, collect the supplier's ABN and bank details, check the ABN, phone to confirm, have a second person approve the supplier record in Xero, then enter the first bill.

Last checked

Setting up a new supplier safely means checking who they are and where the money goes before the first payment. What is supplier onboarding?

Before you start

  • Permission to add contacts
  • Edit bank details permission to enter bank details

The Xero way

Where to find it: Contacts > All contacts > New contact

  1. Check the ABN on ABN Lookup.
  2. In the Contacts menu, select All contacts, click New contact and enter the name.
  3. Open Contact details to add email and ABN. Open Financial details for bank account details and the default settings.
  4. Set the purchase defaults (account and tax rate).
  5. Confirm the bank details by calling a known number.
  6. Process a first small bill and check it before paying.

Limits in Xero

  • Xero has no approval step for new contacts.
  • Only users with the edit bank details permission can view and change a contact's bank details.

Good to know in Xero

  • After setup, the Assurance dashboard Contacts tab shows contacts that share a bank account number.

The Pulsify way

  1. Forward the first bill to Pulsify.
  2. Pulsify flags a supplier not found in Xero so you add the record with the right details.
  3. It checks the ABN against the ABR and flags an invalid ABN or one not registered for GST.
  4. It compares bank details with the supplier record and flags a mismatch.
  5. Route first bills for new suppliers to a second approver.

Pulsify connects to Xero in one click. Approved bills are created in Xero with the source file attached.

What Pulsify does not do here

  • Pulsify flags. A person still confirms by phone.

Common mistakes

  • Saving bank details before confirming them by phone on a known number.
  • Skipping the purchase defaults (account and tax rate) that later bills would use.

More help

Sources

Last checked 2026-10-19. Confidence: confirmed.

Common questions

Where do I enter a new supplier's bank details in Xero?

Contacts > All contacts > New contact, then Financial details. Only users with the edit bank details permission can view and change a contact's bank details.

Does Xero approve new suppliers?

No. Xero has no approval step for new contacts.

How can I spot suppliers that share a bank account?

After setup, the Assurance dashboard Contacts tab shows contacts that share a bank account number.

What does Pulsify check?

ABN, GST status and bank detail mismatches.

Pulsify setup guides

Want this done for you?

Book a call to see how Pulsify handles supplier bills in Xero.

Start free trial Book a call