Why Integrate Timesheets with Xero Payroll?
Businesses using Xero already benefit from a robust payroll engine. But for companies whose operations rely on job or shift-based work - like electricians, labourers, contractors, or consultants - there's often a critical gap: timesheets are collected outside of Xero, and must be manually entered before pay runs can begin.
This creates multiple problems:
- Hours lost to manual data entry.
- Risk of errors from mismatched hours or forgotten submissions.
- Payroll delays due to approvals or handovers.
- Limited visibility over actual labour costs across projects or departments.
By automating the flow from timesheet to payroll, businesses can eliminate friction, improve accuracy, and free up staff to focus on higher-value work.
Dcode Is a Xero Developer Partner - We Build What You Can't Buy
As an official Xero Developer Partner , Dcode is trusted to deliver deep, reliable integrations that connect Xero to the rest of your business systems. Whether it’s a custom ERP, job management platform, or your own mobile field app, we can plug it into Xero’s API and automate the handover from "hours worked" to "employee paid."
Unlike marketplace apps that try to be one-size-fits-all, our custom integrations are purpose-built for your exact workflow.
Real Example: Timesheets to Payroll for a National Trade Business
We recently helped a trade business with dozens of field staff who logged hours in a custom job management platform. Payroll was being processed in Xero - but not before someone spent hours manually copying, pasting, and verifying timesheet data every single week.
We built a secure integration that:
- Pulled approved timesheets from their system.
- Validated entries against Xero’s employee records and pay items.
- Automatically created Xero timesheets linked to the correct employees and dates.
- Triggered alerts for missing approvals or mismatches.
- Enabled payroll to be processed in minutes, not hours.
The result? Faster pay runs. Happier staff. And a finance team that could finally take a breath on Monday mornings.
How Custom Timesheet Integrations Work
Here's how we typically approach building a tailored timesheet-to-payroll integration:
1. Discover Your Workflow
We begin by understanding your specific process:
- How are timesheets entered and approved?
- Who needs visibility before payroll runs?
- What rules apply (overtime, penalty rates, allowances)?
2. Design the Integration Flow
We design a clean, logical connection between your system and Xero:
- Mapping employees, pay items, tracking codes.
- Handling exceptions (e.g., late submissions).
- Defining sync schedules and manual overrides where needed.
3. Develop the Integration
Using Xero’s API and secure authentication, we build and test:
- Timesheet creation endpoints.
- Error handling and fallback logic.
- Data formatting to meet Xero’s schema requirements.
4. Deploy and Support
Once tested, we go live - with logs, alerts, and monitoring in place. Our support continues as your business evolves.
The Bigger Picture: More Than Just Payroll
While payroll automation is the immediate win, integrating timesheets also unlocks:
- Accurate project costing and profitability reports.
- Real-time labour forecasting.
- Cleaner audit trails and compliance.
- Less stress for managers chasing up approvals.
And it's just one part of what’s possible with custom Xero integrations.
Ready to Automate Payroll with Xero?
If you're tired of wasting time and taking risks with manual payroll processes, it might be time to build a smarter connection between your systems and Xero.
At Dcode, we specialise in solving the gaps no off-the-shelf software can fix.
👉 Talk to us about a custom Xero integration
👉 Explore more of our integration work
Let’s take payroll from painful to automatic.
