Xero Project Management Software

Small business owners have a lot of responsibilities. Not only do they need to keep track of the day-to-day operations of their businesses, but they also need to find time to work on long-term goals and strategies. This can be a challenge, especially if you don’t have the right tools and resources.

One tool that can help you manage projects and costs is Xero project management software. Xero is a cloud-based accounting and bookkeeping software that offers a range of features to help small businesses track their finances.

In this article, we will look at an example of a small business using Xero projects, its features, costs and alternatives.

Xero Online Accounting Software

Xero is an online accounting software that provides small businesses with a range of features to manage their finances. The software includes tools for invoicing, bookkeeping, uploading bank statements, cash flow, bank reconciliation, and tax return preparation. Xero also offers a mobile app, which allows business owners to track their finances on the go.

In addition, the software integrates with a number of third-party applications, such as payroll, project management and inventory management systems. Overall, Xero provides a comprehensive solution for small business accounting needs.

Xero Project Management Features

Xero project management tool is part of the Xero account; to use it, you need to add it to the Xero subscription. The first month is free.

To show you the features, we are going to set up a project within Xero and show a working example. The example will include adding time, materials and sales invoices.

Xero Project Management Example

Our example is for a project to set up a computer system, and consultancy for a customer called A Jones. The total project is for 10,000, with a deposit of 2,000. Below is the opening project details before work has started.

Once a project is set up users of Xero can be assigned to the project, allowing them to add time, estimates and invoicing. Within Xero settings users you can allocate roles and permissions to ensure an employee is not viewing other information.

Adding Transactions to the Project

After creating a project, you can easily add transactions, including sales invoices, to your project by using the drop-down within the project or allocating it from a created transaction. The first invoice raised in this project is for a £2,000 deposit.

Task Management

Part of project management is to allocate tasks to each project. Tasks are simple to set up; give your task a name and estimated number, either hour, fixed-rate or non-chargeable. Once a task has been added, it appears on the project and shows the remaining amount to invoice.

Time Tracking

Time tracking is a great feature to Xero projects and is available within the Xero app or desktop version.

There are several ways to track time, either using the built-in clock to track actual time or recording the time when finished.

Within the project, you can see hour much time is completed and how much is left.

Purchase Invoice

One of the most important parts of project management is to ensure that all expenses are allocated to a project and invoice at the correct amount.

Once approved purchase invoices are received from a supplier, there is an option to allocate the expense to the project. The expenses then show ready for invoicing.

Sales Invoice Information

When setting up a project with a client, a schedule of invoices might be agreed upon or invoice the whole project at the end.

Within the project, there is an option to raise an invoice. It allows you to decide which items will be invoiced to the customer and shows the rates. After allocating the correct costs, the invoice is created.

Total Project Visibility

Having total project visibility is essential to the business. The project details reports show the amount invoiced, expenses and profits.

Within each project, it is easy to see the percentage of work completed, the deadline, how much is invoiced and expenses.

Run multiple projects simultaneously

Many small businesses find themselves juggling multiple projects at the same time. This can be a challenge, but with the right tools in place, it can be manageable.

Xero is one such tool that can help small businesses manage their finances and projects simultaneously.

Xero Projects Cost

Xero Projects is an additional cost for businesses based on the number of users that need access. All project managers will need access to a user account. The first month is free for Xero projects, but after that, there is a monthly subscription cost of £5 per user, but you only pay for users that use the feature each month.

Below is the pricing for Xero accounting software.

Other project Management Tools

If you find that Xero projects are not suitable for your company, there is a selection of other Xero integration apps available within the AppStore. One such tool is WorkflowMax.

WorkflowMax

There is a 14-day free trial, and pricing starts at £20 per month and integrates fully with Xero. The software includes quotations, time tracking, scheduling, invoicing and reporting. Workflow can help reduce time spent on project management and spend more time on the business.

Monday.com

Monday.com have a free version that includes project management as well as lots of other tools. Monday offers a complete solution for workflow and is adapted for business needs.

Xero Projects Conclusion

Project management can be a daunting task, but with the right tools in place, it can be manageable. In this post, we’ve outlined how Xero Projects can help small businesses manage their finances and projects simultaneously. We’ve also looked at the cost of Xero Projects and how to run multiple projects simultaneously.

We feel that Xero Projects is a great all-in-one solution for client management and projects as it integrates with the popular accounting software of Xero.