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Sync Faults caused by Xero user permission restrictions

Some customers might be experiencing sync faults due to a update to how Xero handles users permissions

Issue Detected — Sync Fault from Xero

This guide explores the recent security changes implemented by Xero and provides instructions on how to resolve the authorization error preventing contacts from syncing between Cloud Depot and Xero.

1. Why am I seeing this error?

On 29 June 2026, Xero Developer Relations rolled out a major security upgrade that strictly aligns third-party API actions with internal user roles and permissions managed inside Xero Central.

Previously, external connections could sometimes bypass specific user boundaries. With this new update, Xero explicitly enforces real-time permissions: if the specific user who originally connected Cloud Depot to Xero does not have the necessary high-level clearance, the sync will instantly fail.

Common reasons this error occurs:

  • You currently have the “Update Xero contacts” option enabled in Cloud Depot. As a temporary workaround, you can disable this option.
  • The user who connected the integration has a Read Only or restricted Invoice Only role.
  • The connecting user is a Standard user but has had specific user-level restrictions applied to their account and the BankAccountAdmin permission is unticked.

2. How to Fix the Permission Issue

Step 1: Check Xero User Settings

  1. Log into Xero and navigate to your organization's user settings.
  2. Ensure the user performing the reconnection holds a Standard or Advisor role with no custom feature restrictions applied.
  3. Important: When we update Xero contacts we require the BankAccountAdmin option to be selected (even though we do not populate that field) 

Step 2: Reconnect Xero to Cloud Depot

After making the permission changes in Step 1 you might be required to re-connect to Xero please see step 2 from the KB below.