Integrate QuickBooks Time and Xero

The Xero integration in Australia includes payroll in addition to invoicing.

Before you begin:

• You can only connect one QuickBooks Time account to one organisation.
• If you have not already, in Xero, add customers, contacts, and inventory items for invoicing.
• If Customers were manually added in QuickBooks Time before integrating, make sure the Customer name matches exactly between the systems before your first import.

Learn how to: 

• Understand where items from Xero go in QuickBooks Time
• Set up the integration
• Add Xero contacts as customers
• Add Xero contractors or suppliers in QuickBooks Time
• Map overtime pay items 
• Set up time off
• Import data to QuickBooks Time 

Before you integrate

• If you will be exporting hours worked to Xero to be included in payroll, before installing the Xero Integration in QuickBooks Time, make sure you have set up payroll in Xero.
• If employees may be paid time and a half or double time, in Xero, set up those pay items, and assign them to the employee’s pay templates. Then, in QuickBooks Time, turn on overtime tracking. Go to Company Settings, then Payroll & Overtime, and select Overtime.
  • If you use the Pay Rate Engine for more advanced overtime options, you’ll need to map any overtime payroll items within the Pay Rate Engine settings. To make sure the Xero overtime pay items display in the Pay Rate Engine, categorise them as an Overtime Earnings category in Xero.

Understand where items from Xero go in QuickBooks Time

Set up the integration

1. In QuickBooks Time, go to Feature Add-ons, then Manage Add-ons.
2. Go to Xero, and select Install.
3. In the Xero Integration Preferences window, choose your country.
4. If you are planning to run payroll, make sure that Do you have Payroll enabled in Xero? is selected.
   • You don’t have to have payroll turned on in Xero to use the integration for invoicing. You can add employees directly to QuickBooks Time to track time, and those hours can still be invoiced. 
5. Select Connect to Xero.
6. In the Authorise Application window, select your organisation, and then Allow Access.
7. In the Connect window, select Next.
8. In the Import Options window, make your selections:
   • Archive: Selecting any of the archive options removes non-matching employees, customers, and/or inventory items from QuickBooks Time. If this was selected by accident, they can be retrieved by contacting QuickBooks Time Support.
     1. If you manually added employees in QuickBooks Time, make sure their first name, last name, and email match exactly between the systems before your first import.
   • Import customer from Xero: Select this to import your customer list for employees to track time against. If you manually added customers in QuickBooks Time, make sure the customer name matches exactly between the systems before your first import. You can also add contacts as customers later, if needed.
     Note: If available, the customer's address will also sync into QuickBooks Time for the Nearby Jobs functionality.
   • Assign all imported customers to all employees: Selecting this allows employees to see the full customer list. You can uncheck this and manually assign specific customers to specific employees later, if desired.
   • Import inventory items from Xero: Selecting this will allow employees to select from these items on their timesheets. These items then appear on invoices and QuickBooks Time reports. To make sure all inventory items import to QuickBooks Time, make sure to select I sell this item, and uncheck I track this item in Xero.
   • Require employees to select an inventory item: When employees clock in or switch customers, they will be required to select an inventory item on that timesheet.
9. Select Start Import.
10. If you have set up a category in Xero labelled Timesheet Categories, that list will automatically import as a required, selectable list on employee timesheets.
11. Select Assign Rates if you are prompted to assign overtime rates. See below for more help.

Add Xero contacts as customers

Customers (contacts that have been invoiced) are automatically added during import. To import contacts that haven’t been invoiced:

1. In QuickBooks Time, select Xero, then Preferences, and select Manage Xero Customers.
2. Find and select the Xero contacts you want to import as QuickBooks Time customers.
3. Select Add Customers.

Add Xero contractors or suppliers in QuickBooks Time

Only employees are imported into QuickBooks Time from Xero. However, if you have contractors, suppliers, or suppliers who need to track their time against customers for invoices, you can manually add them in QuickBooks Time.

1. Go to My Team, and select Add team members.
2. Select Add manually. 
3. You’ll get a notice that the team member won’t show up in Xero. Select Add only in QuickBooks Time.

The new team member (contractor or supplier) will track their time as normal. Their timesheets will appear on invoices for the associated customers.

Map overtime pay items

Pay items are mapped automatically to the appropriate time types, such as regular or overtime.

If you need to manually map pay items:

1. In QuickBooks Time, select Xero, then Preferences.
2. Change the mapping, if needed.

If you use more advanced overtime calculations, you’ll need to map the correct pay items to each overtime rule.

1. Go to Feature Add-ons, and select Pay Rate Engine.
   • Any setting that has unmapped rules, and any rule that is unmapped, is indicated by .
2. Select a rule to map it. Any overtime pay item from Xero appears in a dropdown next to XERO PAY ITEM.

Set up time off

Time off codes, rules, and balances need to be set up in QuickBooks Time. Make sure the time off codes you set up in QuickBooks Time match the time off types in Xero so they correctly map during the integration process, and for hours to export correctly.

If your time off codes don’t link correctly, rename the code on either QuickBooks Time or Xero’s side and sync again.

Unpaid time off doesn’t export to Xero.

Import data to QuickBooks Time

If you added, edited, or deleted a customer, contact, or inventory item in Xero, make sure you update it in QuickBooks Time.

1. In QuickBooks Time, select Xero.
2. Select Import.