What is Xero Projects? Does my business need it?

January 3. 2020.

What is Xero Projects? Does my business need it?

Xero Projects is a simple job costing solution that can be added onto your existing Xero subscription.

It’s predominantly designed for small services businesses to track time and expenses against individual jobs. And what it gives you is a clear, real-time view of each job’s key metric – profitability.

Afterall, profit is what business is all about!

We’re accountants and bookkeepers in Australia who work with a number of small business clients who are enjoying the functionality of Xero Projects. Specifically, we consider Xero Projects best suited to:

  • Creatives such as Graphic Designers, Web Designers and Copywriters
  • IT professionals with multiple client jobs on the go
  • Accountants and bookkeepers working as sole practitioners, who aren’t quite ready for Xero Practice Manager (XPM)
  • Tradies working on multiple projects
  • Small builders working on bespoke domestic or commercial building projects.

Having said that, Xero Projects is by no means limited to these business types. It will work well for any business that requires a simple time and job costing solution, particularly those businesses who are still using spreadsheets. 

So, if your business is somewhere between spreadsheets and full-feature project management software, it’s worth exploring what Xero Projects can do for your business.

Budget your project

Xero Projects makes it easy to systematically estimate the expenses and time required for a job.  

Create professional quotes, efficiently

With your project’s budget in place, you can quickly pull this information into a quote and then send and track the acceptance of quotes.

Track time and expenses, seamlessly

Xero Projects integrates with Xero’s key features making it easy to attribute expenses and time to any given project. It even has a mobile app so you can track time on-the-go with stop-start timers and location-based tracking on mobile.

Monitor staff time and costs

Xero Projects will show you how your staff and team members are allocating their time to each project.  It’s easy to set an hourly charge-out rate for each staff and team member to accurately budget and quote a job. 

Projects also integrates perfectly with Xero Payroll. This means your staff can enter time directly into a project which will flow through into payroll, eliminating the need for extra data entry.

View job profitability in real time

Unlike a spreadsheet, Xero Projects enables you to budget and allocate time and expenses to a job in one place and in real time. You’ll quickly see if your job is set to profit, break even… or lose. With such visibility, action can be taken during the course of the project to mitigate issues that become apparent along the way.

Invoice your clients accurately

Projects supports both fixed-price and ‘time and expenses’ billing. From within your project you can invoice for a deposit; raise a progress payment invoice based on a fixed-price or a ‘time and materials’ basis.

A better handle on the numbers

As accountants who work with hundreds of small businesses around Australia, our mantra is “know your numbers”. We believe Projects is an excellent tool to help business owners better understand their numbers, particularly when it comes to costing jobs and ascertaining profitability. 

The projects overview and succinct project reporting means business owners have the insights they need, right there at their fingertips. With Xero Projects, you’ll make proactive and better-informed business decisions.

Xero Projects is even better when you add Trello!

As accountants who love collaborative task management tools, we were excited to learn that Xero Projects integrates with Trello. 

If you’re not familiar with Trello, Trello is a work management and task allocation tool that aids workflow and capacity planning. 

By integrating Trello with Xero Projects, you have the ability to add time to a project directly from a Trello card, then invoice accurately from within Xero.

Side note: Trello is just one of the many productivity and work management tools we love. Sign up for a free account now, we promise you won’t regret it!

Are you ready to manage your jobs with Xero Projects?

If your business is using Xero, doesn’t need end-to-end project management tool and would like to do away with spreadsheets (finally) for a more streamlined approach to the financial tracking and management of jobs, then Xero Projects is for you.

Xero Projects is reasonably priced too. The first month is free for unlimited users. After that, it’s $10 for 1 user per month, plus $7 for each additional active user per month. That means that you will only be billed for active users of Xero Projects in any given month. Even as a solo-preneur, Projects offers immense value for an extra $120 per year!

This pricing information is correct at the time of writing, so be sure to check Xero’s website for any price changes.

Interested in learning more about Xero and Xero Projects? 

Why not take a FREE trial of the first two modules of our Xero digital course, Learn Xero Accounting.

Our Learn Xero Accounting course covers everything you’ll need to know about Xero, including Xero Projects.

Looking to Learn Xero Payroll? We have a course for that too.  You can learn more about our Xero Courses and modes of course delivery here.

Book your FREE 15-minute discovery call

Overwhelmed by your business numbers? It’s time to take control. Book a free call with The Number Ninjas Bookkeeping and learn more about cash flow help.