Invoice Automation Tools That Integrate with Xero
Published: 05/06/2022
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As many finance department workers use Xero for their accounting processes, we wanted to introduce them to a list of invoice automation tools they can utilise alongside it. This blog will present five invoicing software solutions that integrate with Xero and will make accountants' lives easier.
Xero accounting software is one of the most popular solutions that finance departments in businesses across all sectors utilise. You are likely already using it or considering adding it to your digital toolbox. Either way, you can enhance its efficiency by integrating it with an invoice automation solution.
However, the market is heavily saturated with digital tools that meet this specific criterion. Therefore, while you should certainly consider it as one of the essential requirements, it shouldn’t be the sole decision-making factor. To assist you in navigating the extensive catalogue of options, we have handpicked the top 5 invoice automation tools that integrate with Xero yet offer slightly different features to cater to the diverse needs of various businesses.
If you’re reading this article, you have most likely recognised the need to automate your invoicing process and are ready to proceed with it. However, if you feel you still need buy-in from management or stakeholders, remember a simple truth: they aren’t interested in how great the software you choose is; they care about how much money it will save and generate.
Research by Zapier has revealed that 88% of SMBs claim automation has provided them with the opportunity to compete with larger companies by saving time and money. Invoicing can be a lengthy and repetitive process when carried out manually, thereby requiring the finance team to divert their attention from tasks that drive progress. It is also susceptible to human errors that, depending on the situation, can become very costly very quickly. Simply put, the cost of not automating is higher than that of automation software - and does your business really want to lose money?
Equipped with a solid reason as to why stakeholders should care, let us examine some of the best invoice automation tools that integrate with Xero.
Despite its telling name, Timesheet Portal offers more than just time tracking. In fact, one of the platform’s strengths is its payroll and billing features, which provide users with numerous customisation options. The invoice generation process in Timesheet Portal, unsurprisingly, involves the timesheets—it extracts the data from them and creates an invoice based on it within seconds. The timesheets themselves can be customised to meet your business needs, such as differentiating rates, overtime, taxes, flexitime, and more. Whatever format of information you choose will be reflected in the invoices.
The integration with Xero will save you time and effort by eliminating the need to export or import invoices between different solutions. Rather than requiring you to switch between tabs, you can export invoices with just a few clicks as you create them. Linking the solutions is straightforward, guiding the user through a step-by-step process where they can map Xero accounts, tracking categories, and customers to Timesheet Portal values, adding depth to reports on both sides. Timesheet Portal also empowers you to control the level of data detail and the type of integration that best suits your needs. Overall, this is an ideal tool for companies that wish to structure their processes according to their requirements, as Timesheet Portal’s customisation and flexibility are unparalleled.
While Timesheet Portal serves as both a data capturing tool and an invoice generator, Datamolino targets companies that already have a reliable data collection solution, though lacking data entry automation features. Its primary focus, aside from automated invoice creation, is as a document storage solution. Therefore, to create an invoice, users must upload their documents onto the platform, and the software will then extract relevant data from them, generating a bespoke invoice within seconds.
Captured and processed data can then be easily exported into Xero through an integration. This tool would be particularly beneficial for larger companies as it is designed to streamline document management. From flexible folders to small identification features such as invoice descriptions, it facilitates easy management of invoices across various branches, locations, and departments. Such file management capabilities are also supported in the integration with Xero, thereby serving as an excellent tool for companies that require a higher level of organisation.
As the software’s name suggests, Entryless prides itself on the comprehensive automation of bill payment. While invoice automation isn’t one of their key features, it is still available and can be significantly enhanced by other functionalities Entryless has to offer, depending on your additional requirements. Given its all-in-one approach to billing automation, this platform would be best suited for businesses that are embarking on their digital transformation journey and are still exploring its role in their strategy.
While there isn’t much information on how the integration with Xero functions, it’s noted that it includes full AP data synchronisation and that bills, as well as invoices, synchronise with Xero Files. As mentioned before, Entryless is more focused on general billing procedures, and it is therefore emphasised that the Xero integration is primarily aimed at easier and more accurate expense tracking.
Unlike previously listed platforms, Yooz distinguishes itself as a specialist in invoice automation rather than a generalist in pay and bill automation. Consequently, its functionality is not as extensive as other solutions, although some features resemble those found in Timesheet Portal or Entryless. Interestingly, while most such solutions typically cater to B2B companies, Yooz possesses several attributes that strongly suggest the platform would also be advantageous for the B2B2C market.
Yooz is also the software with the most integration options on this list. Unfortunately, while some of its functionality is explained in further detail, the connection between Yooz and Xero isn’t defined. Based on its other integration descriptions, it can be assumed that the highlight would be the fact that data transfer is handled in real time, as opposed to the user having to take any steps at all, even if they are as simple as a few mouse clicks. Yooz is certainly a go-to software for companies that manufacture goods, as it has a plethora of features for keeping track of physical product billing.
For Zahara, the priority seems to be the approval processes, whether related to invoices or purchases. Like all the platforms on this list, it aims to enhance the efficiency of finance departments by facilitating automated workflows instead of manual labour. Zahara would best serve businesses that frequently make numerous direct purchases from suppliers, thereby favouring physical production over labour. Their approval-focused approach strongly suggests this.
In fact, even the integration with Xero primarily prioritises the approval processes. While its functionality is akin to other solutions and the invoices generated in Zahara will be pushed over to Xero, it is portrayed as a step in the approval workflow rather than a means of convenience. This unusual perspective is one of the key reasons we’ve included Zahara on the list, as we are confident that some companies, especially those focused on purchases, may find it particularly useful.
Xero is undoubtedly one of the most popular accounting solutions for businesses across all industries. Although every organisation ultimately uses the tool in a manner that suits their needs, thereby utilising its functionality in unique ways, there is a method to customise it even further through integrations. Since various solutions (alas serving similar purposes) are designed to cater to different types of businesses, integration can help you personalise Xero to meet the specific requirements of your sector.
One of the tools to integrate with Xero is invoice automation software, which will save you heaps of time and money, reduce the risk of human error, and generally create a better experience for both the finance team and the client/supplier/any other party involved. We have put this list together to demonstrate the diversity in seemingly similar solutions. With that said, as you can see, integration with Xero should be one of the key requirements for the software, but there are other functions you need to consider, as they may not necessarily align with your business needs.
Did it sound like Timesheet Portal is the tool you need? If so, book a demo today, and we will prove you right.