Manage project costs with Xero’s job costing software
Track the profitability of projects with Xero job costing software for small business. Work out your costs so you know exactly what to quote clients, check project profitability, and record bills and expenses in one place. Then hop into the Xero Projects app to take care of admin on the fly.
Take care of costs, wherever you are
Xero Projects is the dependable, flexible job management software for your small business, whether you’re at your desk or seeing clients.
Record your job costs in one place
Assign bills and expenses to specific projects, and create a centralized tracking system for all your costs.
Choose what’s on your invoice
Customize your invoices with ease—break down costs or keep it simple, and get paid faster.
Check your profitability on the spot
See essential info immediately – compare budget estimates with actual costs to spot overruns and make sure each project
Record your job costs in one place
Eliminate the clutter: bring all your bills, invoices, and receipts together with Xero Projects – a single job costing system for all your financial admin. Get automated calculations to see how your costs stack up, and make confident decisions on what to charge for your work.
- Use the online time-tracker to record the hours you spend on a project
- Assign expenses to the right projects, and keep track of how much you’re spending and where
- Eliminate double entry of costs – Xero Projects integrates seamlessly with Xero Accounting software
Choose what’s on your invoices
Perhaps your invoices breakdown every detail of your costs. Or maybe you keep it simple with a single-line invoice. Xero job management software lets you present your invoices how you want them, so you’re always confident when you hit ‘Send’ .
- Have peace of mind that accurate costs create accurate invoices
- Turn your accepted quotes into invoices in a single click – and send them off faster
- Get paid sooner and improve your cash flow
Check your profitability at a glance
Xero puts the information you need for healthy finances right in front of you. Check your profitability dashboard – on the desktop or with the Xero Projects app on your device – to compare planned job costs against what you’ve invoiced to stay on top of your profits and your project.
- Follow your projects’ profitability in real time for accurate figures
- Spot cost overruns early so you can take action – finding new suppliers or switching materials, for example
- Keep data on all your projects, past and present, to compare your costs and profitability
Take control of your costs with Xero Projects
Your cost-tracking just got easier. Xero Projects and Xero Accounting work perfectly together, so your numbers are up to date across your whole organization. Assign any bills and spending in Xero, then see the details against the right project in Xero Projects.
Learn more about tracking costs with Xero Projects
Xero’s online accounting is like a hand to a glove. Having a system where it’s all automatically tracked so it takes less time is extremely important.
Yvonne Randolph, Yvonne Randolph Interior Design
Frequently asked questions
Job costing is a method of tracking all the costs – labor, materials, subcontractors, and overhead – associated with a specific job or project. Rather than averaging costs across all work, job costing tells you exactly how much it costs to complete each individual job. This makes it possible to compare estimated vs. actual costs, understand where profit is made or lost, and improve the accuracy of future quotes.
Job costing is a method of tracking all the costs – labor, materials, subcontractors, and overhead – associated with a specific job or project. Rather than averaging costs across all work, job costing tells you exactly how much it costs to complete each individual job. This makes it possible to compare estimated vs. actual costs, understand where profit is made or lost, and improve the accuracy of future quotes.
General project tracking monitors time, billing, and high-level costs against a project. Job costing goes deeper – it captures every direct cost (labor hours at cost rates, materials, subcontractor invoices) and compares them to the estimate you set at the start. The goal of job costing is to understand profitability at the job level, which is especially important for trade, construction, engineering, and service businesses where each job has a unique cost structure.
General project tracking monitors time, billing, and high-level costs against a project. Job costing goes deeper – it captures every direct cost (labor hours at cost rates, materials, subcontractor invoices) and compares them to the estimate you set at the start. The goal of job costing is to understand profitability at the job level, which is especially important for trade, construction, engineering, and service businesses where each job has a unique cost structure.
Job costing is most valuable for businesses where each job has a different scope, cost structure, or margin – construction, trade contractors (plumbers, electricians, builders), engineering, consulting, creative agencies, and professional services are common examples. If you quote individual jobs rather than selling a standard product at a fixed price, job costing tells you whether each job is actually profitable. Over time, it can give you real cost data to quote future jobs with more confidence and fewer surprises.
Job costing is most valuable for businesses where each job has a different scope, cost structure, or margin – construction, trade contractors (plumbers, electricians, builders), engineering, consulting, creative agencies, and professional services are common examples. If you quote individual jobs rather than selling a standard product at a fixed price, job costing tells you whether each job is actually profitable. Over time, it can give you real cost data to quote future jobs with more confidence and fewer surprises.
For sure. With Xero Projects you can accurately record all your time and costs for each project. Use the online time tracker or enter billable hours manually. Follow your project progress and monitor all your costs in a single place – and then easily create an online invoice when you’re ready. Plus, you can manage projects on the go with the Xero Accounting app, downloadable to any iOS or Android device.
For sure. With Xero Projects you can accurately record all your time and costs for each project. Use the online time tracker or enter billable hours manually. Follow your project progress and monitor all your costs in a single place – and then easily create an online invoice when you’re ready. Plus, you can manage projects on the go with the Xero Accounting app, downloadable to any iOS or Android device.
In Xero Projects, you can assign expenses, bills, and time entries to individual projects and track actual costs against estimates. As the job progresses, you can see how much has been spent compared to the budget, so you can take action before the job goes over.
In Xero Projects, you can assign expenses, bills, and time entries to individual projects and track actual costs against estimates. As the job progresses, you can see how much has been spent compared to the budget, so you can take action before the job goes over.
Yes. When you set up a project in Xero, you can add an estimate for each cost type (time at a given rate, fixed expenses, etc.). As actual costs are logged against the project, Xero shows a running comparison of estimated vs. actual. This variance view is visible at the project level and helps you identify which jobs are profitable and which are not – so you can refine your quoting process over time.
Yes. When you set up a project in Xero, you can add an estimate for each cost type (time at a given rate, fixed expenses, etc.). As actual costs are logged against the project, Xero shows a running comparison of estimated vs. actual. This variance view is visible at the project level and helps you identify which jobs are profitable and which are not – so you can refine your quoting process over time.
Yes! Look at the Project financials report to see how your tasks and expenses are tracking against the budget you set for the project. If you spot any issues or overruns in your costs, now’s the time to make any changes. Xero keeps all the data from your projects in one place, so you learn from previous projects and compare how your profits measure up.
Yes! Look at the Project financials report to see how your tasks and expenses are tracking against the budget you set for the project. If you spot any issues or overruns in your costs, now’s the time to make any changes. Xero keeps all the data from your projects in one place, so you learn from previous projects and compare how your profits measure up.
Xero job costing software has a profitability dashboard where you can compare your planned job costs against what you’ve invoiced for the work. Check it often to see if you’re likely to stay within budget for a project, and if you can make any improvements. Also, check on how much you’ve invoiced your client for so far – it’s easy to lose track – and find a breakdown of your time and business expenses.
Xero job costing software has a profitability dashboard where you can compare your planned job costs against what you’ve invoiced for the work. Check it often to see if you’re likely to stay within budget for a project, and if you can make any improvements. Also, check on how much you’ve invoiced your client for so far – it’s easy to lose track – and find a breakdown of your time and business expenses.
When you track estimated vs. actual costs on every job, patterns emerge – labor that consistently runs over on certain job types, materials that cost more than your quotes allow, tasks that take longer than expected. Xero Projects stores this history so you can review what past jobs actually cost before preparing a new estimate. Over time, quoting becomes less guesswork and more calibration: you build estimates from real data rather than approximations, which leads to fewer budget blowouts and better margins job after job.
When you track estimated vs. actual costs on every job, patterns emerge – labor that consistently runs over on certain job types, materials that cost more than your quotes allow, tasks that take longer than expected. Xero Projects stores this history so you can review what past jobs actually cost before preparing a new estimate. Over time, quoting becomes less guesswork and more calibration: you build estimates from real data rather than approximations, which leads to fewer budget blowouts and better margins job after job.
Working out what to charge can be tricky because construction jobs vary a lot. You’ll first need to decide whether to use process costing or job costing. Process costing looks at your past experience to calculate an amount, while job costing considers the job in detail and breaks down the labor and material requirements.
Working out what to charge can be tricky because construction jobs vary a lot. You’ll first need to decide whether to use process costing or job costing. Process costing looks at your past experience to calculate an amount, while job costing considers the job in detail and breaks down the labor and material requirements.
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Resources to accelerate your projects
Let’s get technical with some help on managing projects with Xero.
Project management
Learn how to manage projects with Xero Projects, including invoicing and reporting.
Profitability dashboard
Get an instant overview of a project’s profitability and financial health in Xero Projects.
Project financials report
Run the Project financials report to see how your tasks and expenses are tracking against your budget.
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