ConnectWise to Xero sync for construction MSPs

For Construction MSPs

ConnectWise to Xero sync for construction MSPs

Construction MSPs invoice on project-based time-and-materials, progress claims, and retention holdbacks. Connect Zero posts ConnectWise invoices into Xero with project tracking intact, so progress claims reconcile against the builder's schedule of works without manual rebuild.

What this page covers

If you run a construction MSP on ConnectWise and Xero, you already know your billing rhythm is different from a generic break-fix shop. Your clients invoice in progress claims against a schedule of works. They hold retention. They tax-track material vs labour. A Xero invoice that arrives as a single line with no project tag is a builder’s accounts clerk having to rebuild the project view from email threads. Connect Zero is built for that pattern, not against it.

Why construction MSPs hit a wall with manual ConnectWise to Xero billing

Construction MSPs we talk to describe builders, subcontractors, and trades businesses where invoicing is genuinely project-based. A monthly IT invoice is fine; a project-specific cabling install needs to land against the right project code in Xero so the project accountant can roll it up into the project’s cost line. Manual re-keying at month-end means somebody is mentally mapping ConnectWise tickets to Xero project codes, and getting it right on the third pass.

The four forces driving the switch, as we hear them on calls:

Push: A builder client’s project accountant flagged that three IT invoices had landed without project codes and the MSP had to re-issue them against the right project before the next progress claim.
Pull: A Xero invoice that carries the project code from ConnectWise as a tracking category, so the builder’s project accountant reconciles in one filter.
Habit: Mental mapping by an experienced bookkeeper who knows which ConnectWise ticket belongs to which project. Reliable until the project portfolio grows past what one person can hold in their head.
Anxiety: Worry that project codes get cross-wired in the sync. The dry-run report shows project-by-project routing before any live write, and the read-only first pass lets you correct any mismapping at the source.

How Connect Zero handles construction-specific billing

Connect Zero maps ConnectWise project tags (boards, agreements, or custom fields, depending on how your shop tags them) into Xero tracking categories. For builders running progress claims, the project accountant sees IT spend as one line of the project’s cost rollup, no manual re-keying required.

The vertical-aware mappings that matter

ConnectWise project board “Project: New Office Fitout” tagged into Xero tracking category “Project Code”
ConnectWise agreement linked to a Xero contact group “Builder Clients” with net-45 terms applied automatically
Material vs labour line splits preserved from ConnectWise into Xero, so the builder’s accountant rolls them into the right cost line

5-step install

Connect ConnectWise. OAuth into your ConnectWise Manage tenant. Read-only at first so you can review what Connect Zero sees before any sync writes a thing.
Connect Xero. OAuth into your Xero organisation. If you run multiple Xero files for different entities, connect each one and Connect Zero will route invoices by ConnectWise company.
Map locations and departments. Walk through ConnectWise locations and pick the matching Xero tracking categories. For construction MSPs the mapping that earns its keep is project code as a Xero tracking category. Every IT invoice on a project rolls into the project’s Xero report automatically.
Run a dry sync. Connect Zero produces a side-by-side report of what would post to Xero on the next cycle. Review it, flag corrections, then approve.
Switch to live sync. Once you approve, Connect Zero runs continuously. New ConnectWise invoices appear in Xero within minutes, status updates flow back, no manual re-keying.

Frequently asked questions

How does Connect Zero handle progress claims that span multiple months? Each progress claim is a discrete invoice in ConnectWise. Connect Zero posts each one to Xero as it gets approved, with the project code tag attached. The builder’s project accountant rolls them up at progress-claim cadence using the Xero project filter.

What about retention amounts held back from the invoice? Retention is a Xero credit-note or contra-line on the builder’s side. Connect Zero posts the gross invoice; the retention adjustment is handled in Xero by the builder’s accountant or by your bookkeeper, the same way it works today. We do not automate the retention handling, that is a judgement call per project.

Can I split material costs from labour in the Xero invoice? Yes. Set up ConnectWise products with the right product codes for material vs labour, and Connect Zero preserves them as separate line items in Xero. The builder’s accountant sees the split in the line-item view.

What if a project gets re-coded mid-build? Update the project code in ConnectWise, mark the affected invoices for re-sync, and Connect Zero re-posts to Xero with the corrected tag. The audit trail in both systems keeps the original and the correction.

Trust signals

Built in Adelaide by Auswide IT, an MSP that runs ConnectWise itself and lives the workflow daily.
Continuous sync, not nightly batch. Invoices post to Xero within minutes of approval in ConnectWise.
No 30-day notice clause to cancel. Month-to-month from $99 AUD.
Free 30-day trial, no credit card.

Next step

Start a free trial.
Book a demo, a 20-minute walkthrough on your own data.
Talk to sales for pricing questions, volume estimates, multi-entity setups.

ConnectWise to Xero sync for construction MSPs