As we scale our small business platform, we are always looking at ways we can work with like-minded partners to deliver best-in-class cloud tools to our customers. This is all part of the work we are doing to build out the Xero platform, catering to the industry specific needs of our customers. Speaking of building, I’m proud to announce our new partnership with Procore, connecting their industry leading construction platform into Xero.
Chances are if you work in the construction industry, have a large client base that does, or are looking to expand your focus into the sector, you know who Procore is. The new integration we’re announcing today offers an excellent opportunity for construction businesses and Xero accountants and bookkeepers working in the industry, to increase efficiencies and financial visibility across multiple projects.
Why did we choose Procore?
Procore’s approach to market aligns with Xero’s – they are software-as-a-service, born in the cloud, and a disruptor, much like we are – working in an industry that has long been slow to adopt digital technologies. That, combined with the fact that they manage around $US1 trillion in construction volume on their platform gives you an idea of the opportunity available. We think this partnership is a good fit.
Construction is an important industry focus for Xero, and we are passionate about helping the industry digitalise with cloud solutions. According to McKinsey, the construction industry accounts for 13 percent of global GDP (US$10 trillion), but digitalisation [in construction] is lower than in nearly any other industry. However, there’s growing evidence that the industry is now on the brink of change, with the pandemic accelerating the integration of digital tools. Tools clearly needed to help boost productivity, which has only improved a meager 1 percent in the industry over the last 20 years. The Royal Institute of Chartered Surveyors (RICS) also found that 34 percent of construction firms don’t consistently use any digital tools for cost estimation, prediction, planning and control – on any projects at all. We want to change that.
How can the Xero and Procore integration benefit the industry?
According to Procore, construction companies are using an average of five to seven disconnected systems – a huge inefficiency. Teams working in the field often have to wait hours until they can get back to the office and let accounting know (via paper based workflows) about project changes that may impact the budget. In the meantime, accounting is making decisions blind.
Construction companies need better solutions that talk to each other in order to streamline communication, ensure data accuracy, and eliminate double entry. The Xero and Procore integration endeavours to create a seamless connection between the office and the field via the cloud, to provide accurate data in real-time. With one system of truth, companies can be assured their information is accurate.
Partnering to solve small business challenges
Solving the biggest changes and challenges for small business is not something Xero can do alone. We would not be where we are today without our partners, and we must continue to build and nurture more relationships like Procore that expand the value of the Xero small business platform overall for our customers.
What we’ve found is, businesses and advisors that tap into our partner ecosystem are simply more successful. Those businesses using connected apps grew their sales by 4.3% in the first year of the pandemic, while those without any apps saw a decline of 3.4%.
Hopefully with Procore now available in the Xero App Store, we’ve given you all one more option to help create the unique solutions that will help you thrive as a business.
Key features of the Procore + Xero integration
- Connected teams: Connect your field and finance teams so they can work together efficiently in the same system with real-time data
- Accurate data: Eliminate manual data entry between systems – data flows between Procore and Xero automatically, saving time and reducing the risk of human error
- More informed decisions: With a Xero integration, you can have confidence in your financial data to make the best in-the-field decisions
- Flow on benefits:
- Limit Profit Fade – the gap between something happening in the field that affects budget, before it can be communicated back to the office
- Reduce project delays
- Increase project margins
- Increase trust between office and field teams
- Decrease human error and manual duplication
You can try the new Procore integration in the Xero App Store.