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Many businesses struggle to keep their project management and accounting systems connected. Teams waste countless hours manually transferring time entries and expense data from project management tools into Xero, leading to billing delays, data entry errors, and lost revenue. Without real-time synchronization, it's nearly impossible to get an accurate picture of project profitability until after invoices are sent and payments are processed.
The best project management software with time tracking and Xero integration solves these problems by automatically syncing billable hours, expenses, and project data directly with your accounting system. These tools eliminate double data entry, accelerate invoicing cycles, and provide real-time visibility into project costs and profitability while maintaining accurate financial records in Xero.
We've evaluated several tools in this guide that combine robust project management capabilities with accurate time tracking and native Xero integration. You'll discover the features that matter most for financial accuracy, see how businesses are using these tools to improve billing workflows, and learn about potential limitations before committing to a platform.
Below are the key features of best project management software with time tracking and Xero integration:
Features | What It Does |
Expense Management | Tracks project-related expenses and syncs them with Xero for accurate cost reporting and reimbursement processing. |
Task Management | Organizes work into actionable tasks with assignments, deadlines, and progress tracking to keep projects on schedule. |
Reporting And Analytics | Generates insights into project profitability, time utilization, billing efficiency, and financial performance using combined data from projects and Xero. |
Customization | Allows teams to tailor workflows, fields, billing rates, and project structures to match specific business processes and client requirements. |
Project Planning | Provides tools like task boards, timelines, and calendars to visualize progress across different views, and adjust plans as priorities change |
Expense tracking allows team members to log project-related costs such as travel, materials, or software subscriptions. These expenses can be attached to specific projects, marked as billable or reimbursable, and automatically synced to Xero. Receipt capture via mobile apps and approval workflows ensures accurate expense documentation.
Task management capabilities break down projects into manageable steps with clear ownership and deadlines. Teams can organize tasks by priority, track completion status, and visualize workflows through boards or lists. Integration with time tracking ensures that hours logged are linked to specific tasks for accurate project costing.
Reporting and analytics tools provide insights into which projects are most profitable, how efficiently resources are being utilized, and where billing processes can be improved. These reports combine project management data with Xero's financial information to give a complete picture of business performance, including budget variance, time utilization rates, and revenue forecasts.
This feature allows businesses to adapt the software to their unique workflows rather than forcing teams to change established processes. This includes custom fields for project data, configurable billing rates by role or project type, tailored invoice templates, and personalized dashboards.
The software provides multiple ways to visualize and organize work, including task boards for agile workflows, Gantt charts or timelines for sequential planning, and calendar views for deadline management. These visual representations help teams understand project scope, identify potential bottlenecks, and communicate progress to stakeholders.
Xero project management software eliminates the need for manual data entry by automatically syncing time entries, expenses, and project details with Xero. This automation reduces administrative tasks and frees up time for more strategic work.
The platform enables invoices to be generated and sent to clients much faster by automatically capturing time and expenses. This accelerated billing process improves cash flow and reduces the time between project completion and payment.
This functionality provides real-time visibility into project costs, time investment, and budget status, enabling better decision-making. Project managers can identify unprofitable projects early and make adjustments before losses accumulate.
Detailed time tracking and expense documentation provide clients with clear breakdowns of billable work. This transparency builds trust and reduces billing disputes, leading to stronger client relationships.
The software shows how team members are spending their time across different projects and tasks. This visibility helps managers balance workloads, identify skill gaps, and ensure that high-value resources are focused on the most important work.
Below are real-world applications illustrating how such software addresses specific pain points:
Most project management software with time tracking and Xero integration uses subscription pricing that changes with features and team size. Free trials are common, allowing teams to test the platform before committing.
Paid plans usually start from low monthly rates per user and go up as you add advanced features like reporting, expense management, and custom workflows. Tools with native Xero integration follow similar tiers but may include additional features like automated invoicing or two-way data sync.
Below table summarizes the common plans, their average prices, and what features are included in those plans:
Plan Type | Average Price | Common Features |
Free Trial | $0 | Full feature access for testing, basic time tracking, limited Xero sync capabilities. |
Starter Plan | $10-$20/user/month | Basic project management, time tracking, Xero integration, limited projects and storage. |
Professional Plan | $25-$50/user/month | Advanced reporting, expense management, custom workflows, invoice generation, priority support. |
Enterprise Plan | $50-$100+/user/month | Unlimited projects, advanced customization, dedicated account management, API access, enhanced security. |
Evaluate the software to determine whether the integration is native or relies on third-party connectors. Check what specific data syncs between systems, including client information, time entries, expenses, invoices, and payment status, and whether it's one-way or two-way synchronization.
Assess the software to ensure it supports your preferred time tracking methods, whether that's timers, manual entry, or mobile capture. Look for features like timesheet approvals, billable vs. non-billable categorization, and the ability to edit or adjust time entries with proper audit trails.
Make sure the software can handle different billing rates, especially if your prices change based on the employee's role, the type of project, or a specific client deal. It is important to choose a tool that lets you set standard rates but also gives you the flexibility to change them for specific projects or team members.
Select the software that is intuitive enough for team members to adopt without extensive training. The right tool should offer excellent user interface, mobile app experience, and available training resources before committing.
Ensure the software can scale with your business, supporting more users, projects, and clients without performance issues. Check for limits on data storage or integrations with other apps, as these constraints could hinder growth and efficiency as your team expands.
What is the difference between native Xero integration and third-party connectors?
Native integrations are built directly by the software provider using Xero's API, offering more reliable, real-time synchronization, and better support. Third-party connectors provide basic connectivity but may have sync delays, require separate subscriptions, and offer limited troubleshooting support.
How does time tracking integration affect Xero's data structure?
Time entries typically sync to Xero as line items on invoices or as tracked time if you're using Xero Projects. The software should respect Xero's tax codes, account codes, and client records to maintain financial data integrity.
Can I track both billable and non-billable time with these tools?
Yes, most project management software with time tracking allows you to categorize time as billable or non-billable. This distinction helps with internal resource planning while ensuring only appropriate hours are invoiced to clients through Xero.
What happens if there's a sync error between the platforms?
Most tools provide error logs and notifications when syncs fail. Common issues include mismatched client names, missing tax codes, or permission problems. The best software offers clear error messages and support documentation to resolve issues quickly.
Do these integrations work with Xero in all countries?
Most integrations support Xero globally, but some features may vary by region due to tax requirements or accounting regulations. Verify that the integration supports your specific Xero region and tax configuration before committing.
Contact our team of experts for free advice on choosing software solutions best suited to your business needs.
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