Time Tracking Xero Integration Guide [2026 Updated]

Connecting your time tracking software to your accounting system turns tedious manual work into an automated, error-free process. When done right, it closes the gap between logging hours and getting paid, giving you a crystal-clear view of project profitability. This guide will walk you through the options for integrating a time tracking tool with Xero, complete with a step-by-step tutorial using a popular application.

Why Connect a Time Tracker to Xero?

While tracking hours in a separate app is a good first step, linking it directly to your accounting software unlocks significant efficiencies. The goal is to create a seamless flow of data, from the moment a task begins to the day the invoice is paid.

• Automate Invoicing for Billable Hours: The most immediate benefit is eliminating the need to manually copy and paste time entries into an invoice. A direct integration can automatically convert approved billable hours into detailed line items on a Xero invoice, ensuring accuracy and speeding up your entire billing cycle.
• Improve Project Profitability Analysis: By tying actual hours worked directly to a project's financials in Xero, you get an accurate, real-time look at your profit margins. You can easily compare budgeted hours and costs against actuals, making it simple to identify which projects are thriving and which need attention.
• Reduce Manual Data Entry and Errors: Every time data is transferred manually, you risk introducing human error—typos, missed entries, or incorrect calculations. An integration fully removes this risk, ensuring that the hours logged are the hours billed, every single time.
• Streamline Payroll Processing: If you use Xero Payroll, integrating your time tracking tool simplifies paying your team. Instead of manually entering each person's hours, you can sync approved timesheets directly, making the payroll run faster and more accurate.

Your Xero Time Tracking Integration Options

Xero has a robust ecosystem, so you have several ways to connect your time tracking tool, ranging from purpose-built apps to flexible automation platforms. Choosing the right one depends on your team's workflow and technical comfort level.

Dedicated Apps from the Xero App Store

The most straightforward method is to use a time tracking application that offers a direct, pre-built integration with Xero. These apps are specifically designed to work together, offering a deep and reliable data sync.

• Harvest: A popular choice for service-based businesses, Harvest offers one of the most comprehensive integrations. It allows you to create Xero invoices directly from tracked time and expenses in Harvest. When a client pays that invoice in Xero, the payment status automatically syncs back to Harvest, marking the project invoice as paid.
• Toggl Track: Known for its simple, user-friendly interface, Toggl Track connects to Xero primarily through third-party tools or via its API, but some developers have built connectors found in marketplaces that smooth the process for creating invoices from time entries.
• Clockify: Offering a generous free tier, Clockify is a favorite among freelancers and small teams. It can connect to Xero using a third-party automation tool like Zapier to turn tracked hours into draft invoices.

Third-Party Automation Connectors

If your chosen time tracking tool doesn't have a direct integration, or if you need to create a custom workflow, automation platforms can act as a bridge between your two applications.

• Zapier: This tool lets you build simple automations called "Zaps" without any coding. For example, you could create a Zap that says, "When a new project is created in my time tracking app, create a new contact in Xero." Or, more commonly, "When I tag a time entry as 'ready to bill,' create a new draft invoice in Xero."
• Make (formerly Integromat): For more complex scenarios, Make provides a visual canvas for building multi-step automations. This is useful if you need to include conditional logic, such as routing time entries to different GL accounts based on the project type or employee role before creating a Xero invoice.

Custom API Integration

For large organizations or businesses with highly specific needs, developing a custom solution using the Xero API offers the greatest flexibility. This approach requires developer resources but allows you to build a perfect, tailor-made workflow that syncs data exactly as you need it. This could involve syncing custom fields, handling complex billing rules, or integrating with proprietary internal software.

Step-by-Step Guide: How to Connect Harvest with Xero

The Harvest-Xero integration is a great example of a dedicated connection. It's robust, easy to set up, and covers the needs of most service-based businesses. Here’s how to get it running.

Prerequisites: Before you start, make sure you have an active Harvest account and an active Xero account. You will need administrator permissions in both platforms to authorize the connection.

Step 1: Authorize the Connection

1. Log in to your Harvest account.
2. Navigate to Settings in the top-right corner.
3. Find the Integrations tab and scroll down until you see the Xero logo. Click Connect to Xero.
4. You will be redirected to a Xero login page. Enter your Xero credentials and click Log in.
5. Xero will ask you to confirm that you want to allow Harvest to access your organization’s data (like contacts, invoices, and payment information). Select the correct organization if you have more than one and click Allow access.
6. Once authorized, you'll be redirected back to Harvest with a confirmation message.

Step 2: Configure Your Sync Settings

With the connection active, you now need to tell Harvest how to handle the data it sends to Xero.

1. In Harvest, go back to Settings > Integrations and click on the Edit Settings link under the Xero integration.
2. Default Revenue and Payment Accounts: Choose the default Xero accounts where your revenue and payments from invoices should be recorded. For most, this will be your "Sales" account for revenue and your primary business bank account for payments.
3. Default Invoice Due Date: Set up when invoices should be due. You can set it to be due upon receipt or after a specific number of days (e.g., 30 days).
4. Enable the option to send invoice payment information from Xero back to Harvest. This automatically marks your Harvest invoices as paid when the payment is received in Xero, keeping both systems aligned.

Once your settings are configured, you're ready to create an invoice in Harvest and send it to Xero.

Step 3: Test and Verify the Integration

1. In Harvest, select a project that has some billable hours logged.
2. Go to Invoices > Overview and click Create an invoice.
3. Select the project and the time entries you want to bill for. Harvest will compile the data into a professional invoice.
4. After reviewing the invoice, instead of sending it from Harvest, look for the option to Copy to Xero.
5. A pop-up will ask you to confirm the client mapping. Ensure the client in Harvest is linked to the correct contact in Xero. Click Copy Invoice.
6. Now, log in to your Xero account. Navigate to Business > Invoices. You should see the new invoice from Harvest listed, typically saved as a draft.
7. Open the draft. Verify that the line items, hours, rates, and total amount all match the source data in Harvest. Once you confirm everything is perfect, you can approve the invoice in Xero and send it to your client.

Step 4: Operationalize and Monitor

With a successful test under your belt, you can make this integration part of your regular billing workflow. Establish a routine (e.g., weekly or bi-weekly) to review billable hours in Harvest, create draft invoices, and copy them to Xero for final approval and sending. Periodically check your integration settings, especially if you add new revenue accounts or change your business processes.

Common Problems and How to Fix Them

Even the best integrations can run into hiccups. Here are a few common issues and their solutions.

• Sync Failures: This often happens if an account password changes or the connection needs to be re-authorized. The first step is to visit the Integrations section in your time tracking app, disconnect from Xero, and then reconnect and re-authorize a fresh connection.
• Duplicate Contacts or Invoices: This occurs when an automation rule runs twice or when a client in your time tracker doesn't perfectly match a contact in Xero. Before copying invoices, always check that the client mappings are correct. If you use Zapier, check your "Zap History" to see if a rule fired multiple times in error.
• Incorrect Data Mapping: If your revenue isn't posting to the right account in Xero, revisit your integration settings. Ensure you’ve selected the correct default accounts for sales and payments, as a misconfigured setting is usually the cause.

Final Thoughts

Integrating your time tracking and accounting software eliminates a major source of administrative drag for any service-based business. By choosing the right method—whether a dedicated app, an automation platform, or a custom build—and correctly configuring the data sync, you can get paid faster, reduce errors, and gain clear visibility into your project profitability.

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