Are you tired of manually transferring data between your construction management and accounting systems? Our Procore Xero integration eliminates this tedious task by ensuring data flows automatically between each system. This seamless connection saves you time while reducing the risk of costly errors.
Unlike other platforms that require complex workarounds, this integration creates a direct link between your construction and financial data. Many construction professionals ask what Xero integration actually does and if Procore integrates with other accounting software like QuickBooks. While various integration options exist, the Procore Xero integration stands out for its comprehensive capabilities. At its foundation, this powerful solution syncs Vendors, Projects, Cost Codes, Requisitions, and Check Payments between systems. Additionally, it handles Direct Costs, Commitments, and Journal Entries, creating a complete financial management ecosystem.
In this article, we'll explore how the Procore Xero integration works, what data it synchronizes, and how it can streamline your construction business operations.
The Procore Xero integration creates a bidirectional data highway between your construction management and accounting systems. This technical connection uses Procore's ERP Platform toolset to push and pull information on demand and in real time through Xero's API.
When you export a project from Procore to Xero, the system automatically creates a tracking category option in Xero. Similarly, exporting a company from Procore generates a new Contacts record in Xero's directory.
For financial tracking, the integration handles several key data types:
Nevertheless, certain limitations exist. The integration doesn't support sub jobs or project-specific cost codes. Furthermore, projects created before implementing the integration cannot be synced without professional services assistance.
To successfully implement this integration, your project must use the 'Xero Standard Cost Code List'. Once properly configured, the system eliminates manual entry tasks between platforms, consequently streamlining communication between accounting and project management teams.
Cost codes serve as the backbone of financial tracking in construction projects. The Procore Xero integration transforms Procore's cost codes into Item records within Xero. This critical connection faces several limitations worth noting. For instance, cost code length cannot exceed 30 characters, and you're limited to a maximum of 4000 cost codes in Procore.
When exporting cost codes from Procore to Xero, you'll need to manually assign purchase and sales accounts to these codes in Xero after the export. Though tedious, this can be accomplished in bulk using Xero's import/export function.
Importantly, the integration strongly recommends using a single or two-tier cost code structure in Procore. Each cost type assigned to a cost code creates a separate item in Xero's products and services list, therefore simplifying your structure prevents unnecessary complexity.
One significant restriction is that project-specific cost codes aren't supported. Your company must use one universal cost code list across all Xero-integrated projects. Moreover, it's generally advisable to avoid using existing products and services in Xero for your Procore cost code structure unless specifically discussed with your Integration Implementation Specialist.
To initiate cost code synchronization, Procore administrators must first send new codes to the ERP Integrations tool where accounting approvers can accept them for export. Thereafter, Xero will use tracking categories instead of traditional department codes or cost centers, keeping your chart of accounts manageable.
Direct invoice and payment handling stands out as a major advantage of the Procore Xero integration. The system efficiently manages the financial data flow between platforms without manual intervention.
When working with vendors who don't have designated contracts on a project, Xero invoices can be sent directly into Procore. Notably, Xero allows setting different project numbers on each line item - when this occurs, the integration automatically splits the invoice, sending each line only to its connected project.
The process follows a simple workflow:
For payment synchronization, once a subcontractor invoice exports from Procore to Xero, it automatically creates a Bill in Xero. After payment in Xero, this information flows back to Procore and appears in the "Payments Issued" section of the project Commitments tool.
This bidirectional capability extends to Direct Costs as well - those small-value items outside of formal commitments. Originally designed to flow from Xero into Procore, newer integration versions also support Procore-initiated direct costs flowing into Xero.
The Procore Xero integration stands as a powerful solution for construction companies seeking to streamline their financial and project management workflows. This robust connection effectively eliminates double data entry, thus saving valuable time while significantly reducing the risk of costly errors. Construction professionals can now focus more on project execution rather than administrative tasks.
Though certain limitations exist, such as the inability to support sub jobs or project-specific cost codes, the benefits undoubtedly outweigh these constraints. The bidirectional data flow ensures all financial information remains consistent across both platforms, therefore creating a single source of truth for your business.
Cost code synchronization, despite requiring some initial setup, eventually provides a unified financial tracking system across all projects. Similarly, the automated handling of commitments, direct costs, invoices, and payments removes substantial administrative burden from your team.
Companies implementing this integration typically experience improved communication between field and office staff. Financial data becomes more accessible to project managers, while project progress becomes more visible to accounting teams. This transparency ultimately leads to better decision-making and more accurate financial forecasting.
Before implementing this integration, you should carefully consider your current workflows and cost code structure. A simplified approach generally works best with this system. Additionally, properly planning the implementation with your Integration Specialist will help avoid potential pitfalls.
Considering all factors, construction businesses looking to modernize their operations will find the Procore Xero integration a valuable tool in their digital transformation journey. The seamless connection between construction management and accounting functions actually delivers on the promise of increased efficiency and reduced administrative overhead.