Choose the system that shows the margin you need, with the costs and work behind it.
Renzo Demartini, Chartered Accountant and finance executive · · 3 min read Drafted with AI, reviewed and spot-checked by me.
Exhibit 1What margin will this sample job really make?
Recorded costs onlyWith work still to come
Agreed revenueA$20,000A$20,000
Costs countedA$12,000A$17,000
ContributionA$8,000A$3,000
Revenue of A$20,000 less recorded costs of A$12,000 leaves an apparent A$8,000.
Add A$2,000 of commitments and A$3,000 of remaining work. A$3,000 is left.
Counting the work still to come cuts the sample job’s contribution from A$8,000 to A$3,000, or 15% of revenue.
Illustrative figures, not client data.
In short
Define the margin and the decision before comparing software.
Xero Projects can connect recorded time, expenses and invoices to a job.
Test operational requirements and missing costs before adding another system.
A profitable-looking job can still finish below your target.
I would start with the report the owner needs each week. It should show the agreed revenue, costs already incurred and work still to complete. Then ask which system can keep that view current without rebuilding it in a spreadsheet.
Exhibit 2
A job that looks A$8,000 ahead is forecast at A$3,000 once costs are counted
Looks fine
A$8,000
Apparent surplus on recorded costs
Agreed revenue of A$20,000 less recorded costs of A$12,000.
Missing
A$5,000
Costs not yet recorded
A$2,000 of commitments plus A$3,000 of remaining work.
Real
A$3,000
Forecast contribution
15% of agreed revenue, down from 40% on recorded costs.
Illustrative figures, not client data.
Define the margin first
Exhibit 3
The sample contribution falls from 40% to 15%
Sample job measure
Amount
Agreed revenue
A$20,000
Recorded labour and purchases
A$12,000
Apparent surplus before missing costs
A$8,000
Unbilled committed purchases, not already recorded
A$2,000
Remaining labour and materials, excluding commitments above
A$3,000
Forecast total cost
A$17,000
Forecast contribution
A$3,000
Forecast contribution / agreed revenue
15%
Sample data excluding GST, not a client result and not a Xero report. Contribution is before overhead, finance costs and tax.
Illustrative figures, not client data.
Exhibit 4
Three rules keep every job report on one margin definition
01
One boundary
Agree what counts with your finance lead, so two reports do not answer different questions.
02
One cost basis
Use the same cost basis when comparing completed jobs and future quotes.
03
Variations kept apart
Keep unapproved variations separate from agreed revenue.
This sample is a forecast contribution model, not a Xero report. It excludes overhead, finance costs and tax. The A$5,000 includes only costs missing from the recorded A$12,000.
Agree that boundary with your finance lead. Otherwise, one report includes remaining labour while another stops at supplier bills. Both can look reasonable while answering different questions.
Check what Projects already covers
Exhibit 5
Projects connects recorded work to job profitability
01
Time
Record hours against tasks.
02
Costs
Assign bills and expenses.
03
Billing
Invoice from the project.
04
Australian plan
Ultimate includes 10 project users.
A capability summary from Xero’s Australian pages, read 31 October 2026, not a reproduction of the interface.
Xero’s profitability dashboard compares recorded costs with the budget you set. So the forecast is only as good as that estimate, and as complete as the costs your team records.
Read the current plan terms before buying.
I would test this first where the main need is recorded job profitability. Give staff a clear rule for entering time and assigning costs. Software cannot report a cost that nobody records.
The project tracking page also describes fixed-price and time-and-materials invoicing from project information, including deposits and progress payments.
Buy the operational capability you need
Exhibit 6
Projects records the job’s cost; a job system adds controls on how the work happens
Xero Projects
Records time, bills and expenses against a job
Compares recorded costs with the budget you set
Invoices from the project
Test it first where recorded job profitability is the main need
A job system
Adds controls around how work happens
WorkGuru: stock usage and changes against jobs
Simpro: inventory allocation and a Xero integration
Ask the vendor to demonstrate your awkward job
Capabilities as the vendors document them, read 31 October 2026. Examples, not a promise that every job system meets your requirements.
Exhibit 7
Operational needs set the demonstration
Need
Demonstration to require
Recorded time and job costs
Complete the job inside Projects
Stock issued to jobs
Allocate, return and reconcile materials
Recurring field work
Schedule work and capture completion
Forecast margin
Show commitments and remaining cost separately
Accounting handover
Trace a record into Xero and resolve a failed transfer
An illustrative decision framework. The vendor capabilities named in the text are examples, read 31 October 2026.
These are examples, not a promise that every job system meets your requirements. Ask the vendor to demonstrate your awkward job, including a late bill and a changed scope.
Decide where each record belongs. Confirm what moves into Xero, when it moves and who fixes failures. Compare implementation, training, subscriptions, integration and support costs. Record hours released separately from cash savings.
What to do first
Exhibit 8
Prove the margin before changing systems
01Owner: define the decision
The report the owner needs each week: agreed revenue, costs incurred and work still to complete.
02Finance lead: agree the cost model
What counts as cost, so every report uses the same basis.
03Team: test a sample job
Run one completed job through each option and reconcile it to the cost model.
04Owner: approve scope and running cost
Choose the simplest setup that passes, with someone responsible for it.
Take a completed job through both options using sample or appropriately protected records. Reconcile the result to your agreed cost model.
Then test a live-job forecast with an outstanding commitment. Require evidence that the owner can see the problem in time to act. Choose the simplest setup that passes those tests and has someone responsible for maintaining it.
Common questions
Is Xero Projects included in every plan?
No. Xero’s Australian pages place Projects in Ultimate, with 10 project users included and additional charges beyond that allowance.
Can Xero Projects invoice tracked work?
Yes. Xero describes fixed-price and time-and-materials invoicing from project information, including deposits and progress payments.
Do I need a separate job management system?
Start with the work your team needs to control. If the required workflow cannot pass a demonstration in Projects, compare a suitable job system and its accounting handover.
Chartered Accountant (CA ANZ) and finance executive, based in Canberra. Practical AI and automation for SMEs, and adviser to owners, CEOs and boards on integration and finance.
If job margins keep changing after the work finishes, I help find the missing costs and handovers. The Diagnostic turns that into clear priorities.
Renzo Demartini