Invoice Automation Tools That Integrate with Xero
Published: 06/06/2022
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Since many finance department workers utilise Xero for their accounting procedures, we wanted to introduce them to a list of invoice automation tools they can use alongside it. This blog will list 5 invoicing software solutionsthat integrate with Xero and will make the lives of the accountants easier.
Xero accounting software is among the most popular solutions the finance departments of businesses across all sectors utilise. Chances are you are already using it or might be considering adding it to your digital toolbox. Either way, you can expand its efficiency by integrating it with an invoice automation solution.
However, the market is heavily saturated with digital tools that tick the box for this specific criterion. Therefore, while you should certainly consider it as one of the mandatory requirements, it shouldn’t be the single decision-making factor. To help you navigate through the wide catalogue of options, we have handpicked the top 5 invoice automation tools that integrate with Xero yet offer slightly different features to cater to needs different businesses may have.
If you’re reading this article, you have most likely recognised the need to automate your invoicing process and are ready to go through with it. However, if you feel you still need buy-in from the management or the stakeholders remember a simple truth - they aren’t interested in how great the software you choose is. They care how much money it will save and make.
Research by Zapier has revealed that 88% of SMBs claim automation has given them the opportunity to compete with larger companies - by saving time and money. Invoicing can be a long and repetitive process when done manually, therefore requiring the finance team to turn their attention away from progress-driving tasks. It is also prone to human errors that, depending on the situation, may get very costly very fast. Simply put, the price you pay by not automating is higher than that of automation software - and does your business want to lose money?
Equipped with a solid reason as to why should the stakeholders care, let’s look at some of the best invoice automation tools that integrate with Xero.
Despite its telling name, Timesheet Portal has more to offer than time tracking. In fact, one of the platform’s strengths is its pay and bill features that give users numerous customisation options. The invoice generation process in Timesheet Portal, unsurprisingly, involves the timesheets - it pulls the data out of them and creates an invoice based on it within seconds. The timesheets themselves can be customised to your business needs such as differentiating rates, overtime, taxes, flexitime and others. Whatever information format you choose, will reflect in the invoices.
The integration with Xero will save you the time and effort of having to export/import invoices from one solution to another. Instead of forcing you to switch between the tabs, you can export the invoices with just a few clicks right as you create them. Linking the solutions is made easy by taking the user through a step-by-step process, throughout which they can map Xero accounts, tracking categories and customers to Timesheet Portal values, adding a layer of depth to reports on both ends. Timesheet Portal also puts you in control of how much data detailing or what level of integration are best suited for you. Overall, this is a perfect tool for companies that want to build their processes in a way they want/need them as Timesheet Portal’s customisation and flexibility are second to none.
While Timesheet Portal serves as a data capturing tool as well as an invoice generator, Datamolino addresses companies that already have a trusted data collection solution alas without data entry automation features. Its main focus, aside from automated invoice creation, is serving as document storage. Therefore to create an invoice, the users need to upload their documents on the platform and the software will then pull relevant data out of them, creating a bespoke invoice within seconds.
Captured and processed data can then be easily exported into Xero through an integration. This tool would be very handy for bigger companies as it’s designed to smoothen document management. From flexible folders to little identification features such as invoice descriptions, it makes it easy to manage invoices across different branches, locations, departments, etc. Such file management features are also supported in the integration with Xero, therefore serving as a great tool for the companies that need higher levels of organising.
As the software’s name would suggest, Entryless prides itself on the complete automation of billpay. Although invoice automation isn’t among their key features, it is still available and, depending on what other requirements you may have, can be greatly enhanced by other functionality Entryless has to offer. Given its all-in-one approach to billing automation, this platform would best suit businesses that are starting their digital transformation journey and are still exploring its role in the strategy.
While there isn’t much information on what the integration with Xero looks like, it’s mentioned that it includes full AP data synchronisation and that bills, as well as invoices, synch with Xero Files. As mentioned before, Entryless is more focused on general billing procedures and it’s therefore highlighted that the Xero integration is majorly aimed at easier and more accurate expense tracking.
Unlike previously listed platforms, Yooz positions itself as a specialist in invoice automation instead of a generalist of pay and bill automation. In turn, its functionality is not as wide as other solutions although some features resemble those seen in Timesheet Portal or Entryless. Interestingly enough, while most of the time such solutions cater for B2B companies, Yooz has several assets that strongly suggest the platform would be useful for the B2B2C market as well.
Yooz is also the software with the most integration options on this list. Unfortunately, while some of their functionality is explained in further detail, the link between Yooz and Xero isn’t defined. Based on their other integration descriptions, it can be assumed that the highlight would be the fact data transfer is handled in real-time as opposed to the user having to take any steps at all, be they 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 appears to be approval processes, be they invoice and purchase related. Similarly to all the platforms on this list, it aims to improve the efficiency of finance departments by enabling automated workflows instead of manual labour. Zahara would best serve businesses that tend to make a lot of purchases directly from the suppliers, therefore favouring physical production over labour. Their approval-focused approach is a strong hint of that.
In fact, even the integration with Xero primarily prioritises the approval processes. While its functionality is similar to other solutions and the invoices generated in Zahara will be pushed over to Xero, it is described as a step in the approval workflow rather than a means of convenience. This unusual angle is one of the key reasons we’ve included Zahara on the list as we are certain some companies, especially ones focused on purchases, may find it particularly useful.
Xero is undeniably one of the most popular accounting solutions for businesses in all industries. While ultimately every organisation uses the tool in a way they need it, therefore utilising its functionality in their unique ways, there is a way to customise it even further - through integrations. Since different solutions (alas serving similar purposes) are designed to cater for different types of businesses, integration can help you personalise Xero to cater for the specific requirements of your sector.
One of the tools to integrate with Xero is invoice automation software. That 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 put this list together to show you the diversity in seemingly similar solutions. With that said, as you see, an integration with a Xero should be one of the key requirements for the software - but there are other functions you need to be mindful of as they may not necessarily align with your business needs.
Did it sound like Timesheet Portal is the tool you need? Then, book a demo today and will prove you right.