Xero Projects Review 2026: Features, Pricing & Better Alternative

Xero Projects helps businesses track project time, expenses, and profitability within Xero. This Xero projects review guide explores its features, pricing, limitations, and how it compares with alternatives such as LiveCosts.

Is Xero Projects Right for Your Construction Business?

Xero Projects is a well-regarded project tracking tool used by thousands of businesses. It is easy to activate, straightforward to use, and fits naturally into an existing Xero workflow. However, being capable of general project-based businesses and being suitable for construction contractors are two different things.

Construction businesses carry financial complexity that most service industries do not. Multiple concurrent projects, procurement workflows, subcontractor costs, variation management, and real-time budget control are not edge cases in construction. They are standard operating requirements.

This guide takes an honest look at what Xero Projects offers, where it falls short for contractors, and how LiveCosts compares as a purpose-built alternative. If you are a contractor currently using Xero Projects or considering it, the comparison ahead will give you a clear picture of which platform is built for the work you actually do.

Why Trust Us?

LiveCosts has worked with contractors, project managers, and quantity surveyors across the UK, Ireland, Australia, and North America. Our analysis is based on extensive research into project management and construction software used by contractors and project-based businesses.

We see where budgets break and where software fails real construction teams every day. That hands-on experience shapes everything in this Livecosts guide.

What is Xero Projects?

Xero Projects is a project tracking tool built inside Xero’s cloud accounting software. If you already use Xero for your accounts, Projects sit right there in your dashboard with no separate login and no extra platform to manage. It helps businesses manage project work by tracking time, expenses, and project costs in one place.  

You create a project, break it down into tasks, log time against it as work progresses, add expenses as they come in, and invoice the client when the job is done. Because it connects with Xero accounting, project data automatically links to invoices and financial reports. This makes it easier for service-based businesses, freelancers, and small teams to understand how profitable their projects are while keeping financial records accurate and organised.

Key Features

• Time Tracking: Log hours via a manual timer, mobile app, or location-based auto-tracking. The app detects when a worker enters a job site and starts tracking automatically.
• Expense Tracking: Add costs directly to a project from the field. Expenses are tracked against estimates so you can see where budgets are being used.
• Project Invoicing: Four invoice types: deposit, tasks and expenses, project amount, and accepted quote. Invoices are auto-populated from tracked time and costs, reducing manual billing errors.
• Project Dashboard and Reporting: A single view showing cost estimates, invoiced amounts, time logged, and deadlines across all active projects.
• Expense Tracking: Add costs directly to a project from the field. Expenses are tracked against estimates so you can see where budgets are being used.
• Quote to Invoice: Send a quote, get it accepted, and convert it to an invoice in a few clicks.
• Task and Team Management: Break projects into individual tasks, assign team members, and set time estimates per task. Everyone sees what they are responsible for.
• Mobile Time and Expense Tracking: The Xero Projects mobile app allows teams to log time and costs from anywhere, helping maintain accurate project records.
• Xero Expenses Integration: Employee expenses and mileage claims submitted through Xero Expenses can be assigned directly to projects, helping recover every billable cost.
• Project Profitability Tracking: The platform compares project income with recorded labour and expenses. This helps businesses understand whether a project is profitable or exceeding its budget.

Pros 

• Simple Time Entry. The timer starts with one click and keeps running even when you navigate to other screens. Field workers can log hours from mobile without any training needed.
• Native Xero Integration. Everything feeds directly into your Xero accounting records. No separate sync, no duplicate data entry, no extra login.
• Automated Invoicing. Invoices pull tracked time and expenses automatically. Billing is faster and less prone to manual errors.
• Location-Based Tracking. The mobile app can auto-detect when a worker arrives at a job site and start tracking. Reduces time theft and forgotten entries.
• Quote to Invoice Workflow. Once a quote is accepted, converting it to an invoice takes two taps. Clean, fast, and connected end to end.
• Simple Interface for Small Teams: The platform is designed to be easy to use without a complex setup. This makes it suitable for freelancers, agencies, and small teams managing client projects.

Cons 

• No Procurement Workflows. There are no purchase orders, RFQ tools, or delivery tracking. For contractors managing materials and suppliers, this is a serious gap.
• Additional Cost Per User: Xero Projects is a paid add-on to Xero accounting, and pricing increases as more users are added.
• No Construction Budget Structure. There are no cost codes, variation management, or subcontractor breakdown. Budget tracking stays at a surface level.
• Weak Reporting for Construction. Reports cover time and expenses at a high level. Committed costs, cost to complete, and live margin tracking are not available.
• Opaque Pricing. Add-on costs are not published publicly. You need to create a full Xero account before you can see what you will actually pay.
• Mobile App Reliability. Location-based tracking bugs and login glitches are flagged consistently across user reviews on the App Store and Google Play.

Pricing 

Xero Projects is not available as a standalone product. It is included in certain Xero accounting plans, which means businesses must subscribe to Xero before using project tracking features. 

Xero currently offers three main pricing tiers, and Track Projects is only available on one of them.

Early: $25/month (Promotional: $3.75/month for 6 months)

Built for freelancers and sole traders just getting started. Core accounting only.

• Send quotes and up to 20 invoices
• Enter up to 5 bills
• Reconcile bank transactions
• Capture bills and receipts with Hubdoc
• View real-time reports
• W-9 and 1099 management
• Sales tax
• Basic performance graphs
• 30-day cash flow forecast
• Make online bill payments (optional, fees apply)

No projects. No expense claims. No multi-currency.

Growing: $35/month (Promotional: $8.25/month for 6 months)

For businesses going beyond the basics. Removes invoice and bill caps and adds performance visibility.

• Everything in Early, plus:
• Unlimited invoices and quotes
• Unlimited bills
• Auto-reconcile bank transactions (Beta)
• Customise performance dashboards
• Personalised financial health scorecards
• Make online bill payments (optional, fees apply)
• Inventory Plus (optional, first month free)

Still no projects. Still no expense claims. Still no multi-currency.

Established: $90/month (Promotional: $13.50/month for 6 months)

The only plan that includes Xero Projects.

• Everything in Growing, plus:
• Track projects
• Claim expenses
• Analyse KPIs and ratios
• Use multiple currencies
• 180-day cash flow forecast
• Inventory Plus (optional, first month free)

What is LiveCosts?

LiveCosts is a cloud-based construction cost management platform designed to track project finances in real time. It is built exclusively for contractors, subcontractors, home builders, and specialty trades. Unlike Xero Projects, which tracks time and expenses for any industry, LiveCosts is built around how construction businesses actually operate.

LiveCosts collects and controls key financial data from all areas of your construction business to display your project’s health in real time. It connects your forecasts to your site in real time, giving you complete control and sight of every project cost as it happens. 

The platform is not an accounting replacement. It is the construction intelligence layer that sits on top of Xero, QuickBooks, or Sage.

Key Features

• Real-Time Job Costing Tracking: Every purchase order, invoice, and timesheet updates your budget vs actuals instantly. You see exactly where each project stands the moment a cost hits, not at month’s end.
• Purchase Order Management: Raise, approve, and track purchase orders against project budgets from the office or the site. Each order is linked to the project budget so managers can monitor spending before costs exceed estimates.
• AI Invoice Processing: LiveCosts uses AI-powered line item extraction and three-way matching to pull invoice data, match it to the correct PO and delivery docket, and sync it to your accounting software in one click. Invoices move from the inbox to approval in seconds.
• Labour and Timesheet Tracking: Log employee hours, subcontractor dayworks, and equipment usage directly from the job site. Every cost is assigned to the correct project budget line in real time.
• Procurement and RFQ Workflows: Request quotes from multiple suppliers at once, compare prices line by line, and convert the best price into a purchase order in seconds. Less manual work, fewer errors.
• Supplier Price Catalogue: Store your most ordered materials and their historical supplier prices in one place. Use that data to budget future projects with greater accuracy from the start.
• Delivery Tracking: Site staff confirm deliveries on mobile. LiveCosts reconciles delivery dockets against purchase orders and invoices automatically, so nothing is paid for that was not received.
• Accounting Integration: Native one-click sync with Xero, QuickBooks, and Sage. All suppliers, tax rates, and charts of accounts are imported at setup, so both systems stay aligned from day one.
• Mobile App: Full iOS and Android app for field teams. Purchase orders, deliveries, labour, and timesheets are managed from anywhere in real time. No paperwork, no delays.
• Project Dashboard and Reporting: Live margins, committed costs, cost to complete, and budget vs actuals are visible on the home screen the moment you log in. Reports are ready in minutes, not days.

Pros

• Real-Time Visibility: Budget vs actuals updates on every project the moment a cost is recorded. You know your margin before the job is finished, not after.
• AI Invoice Automation: Three-way matching eliminates manual invoice processing. What used to take an office team hours now takes seconds.
• Built for Construction: Every feature is designed around how contractors actually work. Nothing is adapted from a generic software template and retrofitted for construction.
• Fast Setup: LiveCosts goes live in hours. There is no IT project, no implementation partner, and no weeks of configuration before your team can start using it.
• Accounting Flexibility: Works natively with Xero, QuickBooks, and Sage. Contractors are not locked into one accounting platform to use LiveCosts.
• Human Support: Dedicated support from people with hands-on construction experience. No bots, no ticket queues. When you have a question, someone who understands your workflow answers it.

Cons

• Limited API Access: Third-party integrations outside of Xero, QuickBooks, and Sage are restricted. Businesses with niche or custom software stacks may find this limiting.
• No Free Plan: A free trial is available, but there is no permanent free version. Smaller teams testing the platform long-term will need to commit to a paid plan.

Pricing 

LiveCosts does not publish fixed pricing on its website. Plans are customised based on your team size and business needs. To get an accurate quote, you can book a free demo directly on LiveCosts.

Why LiveCosts Is a Better Alternative 

Contractors researching Xero Projects want one thing: to know if it is enough for their construction business. In most cases, it is not. Here is why LiveCosts is the stronger choice.

• Construction-Specific Design. Xero Projects is built for any project-based business across any industry. LiveCosts is built for construction only. Budget structures, variation tracking, procurement workflows, and subcontractor cost breakdown are core to how it works, not missing features you have to work around.
• Real-Time Cost Control. Xero Projects shows time logged and expenses added. LiveCosts shows committed costs, outstanding purchase orders, and live margin on every project the moment a cost is recorded. You see problems before they become losses.
• Procurement Workflows. Xero has no RFQ tools, no supplier quote comparison, and no delivery tracking tied to purchase orders. LiveCosts gives contractors a full procurement workflow from site to office, with every step tied to the correct project budget.
• Invoice Processing. Xero Projects has no automated invoice matching. LiveCosts uses AI-powered three-way matching to process supplier invoices against POs and delivery dockets automatically. Hours of manual admin become seconds.
• Accounting Flexibility. Xero Projects only works inside Xero. LiveCosts integrates natively with Xero, QuickBooks, and Sage. Contractors are not locked into one platform.
• Customer Support. Xero support runs through a help centre and ticket system. LiveCosts provides dedicated support from people with real construction experience. No bots, no generic responses.

Who It Is Built For. Xero Projects works well for small service businesses with simple project needs. LiveCosts is built for SMB contractors who need real-time cost control, fast setup, and a system that works from day one.

Xero Projects vs LiveCosts: Feature Comparison

Improve Project Tracking and Financial Visibility with LiveCosts

Xero Projects provides a functional starting point for project tracking. Time logging, expense management, and client invoicing are handled cleanly within a familiar Xero environment. For service businesses managing a small number of straightforward jobs, that capability is sufficient.

Construction contractors need more. Tracking a project means knowing what is committed before an invoice lands, spotting a budget overrun while there is still time to act, and having a clear view of margin across every active job. 

Waiting until the month’s end to see where a project stands is not project tracking. It is damage control.

LiveCosts delivers that visibility in real time. Every purchase order, invoice, and timesheet updates your project budget the moment it is recorded. Your dashboard shows exactly where each job stands today.

For contractors already on Xero, integration is seamless. 

No lengthy implementation. No hidden fees. Support from people who understand construction.

Book a free demo at LiveCosts and see what construction project tracking should look like.

Commonly Asked Questions From The Contractors And Related Businesses

Is Xero Projects good for construction companies?

The software Xero Projects enables essential project tracking functions but does not meet the requirements of construction projects. The system fails to provide essential construction elements such as procurement workflows, construction budget structures, and variation tracking and real-time job costing. Most construction contractors find they outgrow it quickly as project volumes and cost complexity increase.

What are the limitations of Xero Projects?

The Xero Projects system has several limitations that restrict its functionality. The system provides only basic reporting capabilities and basic project budgeting tools, and it lacks advanced features needed for procurement and cost management. Businesses that handle extensive projects need dedicated tracking systems that offer better project tracking capabilities than standard systems.

What is the best Xero Projects alternative for construction? 

LiveCosts serves as the most effective solution for construction contractors who need a dedicated work tool. LiveCosts provides essential features that allow users to monitor project expenses in real time, manage complete purchasing processes, and use AI technology for invoice verification and generate construction-specific financial reports. The system also provides direct integration with Xero, which allows contractors to maintain their existing accounting system.

Is Xero Projects worth it for project tracking?

Xero Projects works well as an effective project tracking tool for freelancers and consultants and small service-based businesses that currently use Xero accounting software. for freelancers, consultants, and small service businesses that already use Xero accounting. However, companies that handle intricate projects require superior tools for tracking their work progress and managing project expenses.

How long does LiveCosts take to set up? 

Most contractors are up and running the same day. There is no IT project, no consultant required, and no weeks of configuration before your team can start using it. Your existing data from Xero, QuickBooks, or Sage comes across at setup, and you go from there.