If you run a trade business in the UK – whether you’re a builder, plumber, electrician, landscaper or roofer – handling paperwork, payments and accounts quickly can give you a clear edge. Xero accounting software is designed to help time-poor tradespeople stay on top of admin, get paid faster, and keep cash flow healthy, without locking yourself in for extra hours each night.
What is Xero Accounting Software?
Modern cloud-based accounts for tradies
Xero is accounting software that works online, meaning you can access your accounts from your phone, tablet or laptop – on site or in the van. With millions of global users (and many thousands of UK tradespeople), it’s a proven tool that moves your books online and keeps everything secure, up to date and easy to work with.
- Track income and costs job by job
- Create and send professional quotes and invoices
- Automate VAT returns, CIS, and more
If you want step-by-step help getting started, see the 48-Hour Xero Setup Guide for Small Businesses (2026).
The Tradie’s Everyday Jobs: Where Xero Shines
From site visits to invoicing – keeping admin moving
Tradies spend long days on the move. With Xero, you can send a quote from your mobile right after walking a job, invoice as soon as you finish, and manage materials costs on the go. No more hunting for receipts or waiting for paperwork back at the office. Everything sits in one place for quick updates or new jobs.
- Convert accepted quotes to invoices in seconds
- Auto-chase slow payers with reminders
- Stay up to date on costs, even with job changes or variations
On-the-tools tip: Snap a pic of receipts straight into Xero while still at the merchant counter, so you never lose track of your materials costs or miss out on VAT claims.
Sending Quotes and Winning More Work
Quoting fast, chasing approval, landing jobs
Xero makes quoting easier. Enter the job details, select items or services, and send a branded quote via email or WhatsApp before you even leave site. Clients can accept online, making chasing paperwork much faster. A full audit trail protects you and helps if disputes arise over what was agreed.
- Get notified when customers open your quote
- Edit or adjust quotes easily if job specs change
For a detailed comparison with other tools, read Xero vs MYOB in 2026: Which Accounting Software Wins?.
Invoices and Getting Paid – No More Waiting Months
Turn every finished job into cash quicker
Cash flow is king for every UK trade business. Xero lets you invoice on the spot, set clear payment terms, and send polite but firm reminders automatically. Link Xero to online payment platforms for quick payment via credit card or bank transfer, cutting down wait times and awkward phone calls.
On-the-tools tip: Use Xero’s recurring invoices for long-term contracts or maintenance clients so you never miss sending a bill – even if you’re flat out on the tools all month.
Managing VAT, CIS & Staying HMRC-Compliant
Simplifying taxes, reducing headaches
Many small trade businesses trip up on VAT, Making Tax Digital, or CIS (Construction Industry Scheme) reporting. Xero calculates VAT automatically, prepares returns, and submits online. For subbies or main contractors, you can track CIS deductions and batches. This saves you time, reduces errors, and helps dodge costly fines.
- Custom rules for standard, reduced, or reverse VAT
- CIS modules for deductions and statements
If you’re unsure about the details, our Xero GST and VAT Guide 2026: Compliance Made Simple is designed for UK trades.
Material Costs, Variations & Job Tracking
Keep every penny accounted for as jobs change
Materials running over or jobs changing at the last minute are facts of life in trades. Xero lets you enter purchase orders and match invoices to jobs, so you always know your real costs. Logging variations or extras is straightforward, and you can update client bills with just a few clicks rather than retyping everything.
- Track profit, margin and spend per job or phase
- See the gap between costs and payments to spot issues early
Changing Schedules and Weather Delays
Keep the books in sync with last-minute changes
When jobs shift or get delayed, it’s a pain. Xero lets you reschedule invoices, update payment dates or costs, and communicate new terms to clients. Record late or early payments. This flexibility helps you stay in control even when British weather or customer delays throw the diary in the air.
Working with Your Accountant or Bookkeeper
Share data securely – no more shoeboxes or spreadsheets
Xero lets you give your accountant real-time access to your books (they can even correct things remotely). No more back-and-forth emails or hunting for old receipts. There are also specific tools for practice management: explore these with Xero for Accountants and Bookkeepers in 2026.
Integrating with Trade Apps (Job Management, Payments, and More)
Connect job scheduling, payments, and stock with your accounts
Many UK tradespeople use job or project management apps. Xero integrates with popular solutions, letting you pass invoices, timesheets, and materials costs straight into your accounts. This removes the double-handling and helps prevent mistakes or missed billable time.
- Syncs with trusted job management tools
- Automatic bank feed reconciling
Managing Your Business as You Grow
Tools for small teams to growing firms
As you hire or add vans, payroll in Xero helps manage weekly or monthly staff pay. Set permission levels for the team, track expenses, and view profit job by job. The software scales whether you’re a sole trader or running multiple crews across different sites.
Support, Security & Backups
24/7 help and peace of mind
Xero offers online support, UK-based help content, and regular data backups. Everything is cloud-based, so you don’t risk losing records if a laptop dies or a phone is dropped on site.
Plans and Costs: What You Get for Your Money
Transparent monthly fees and flexible options
Xero’s plans are based on business size and features you need, not hidden extras. You can start with a trial to see which meets your needs, then upgrade as your business changes. Cancel any time if you find something better – no long tie-ins.
- Simple pricing per month
- 30-day free trial with no credit card needed
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Frequently Asked Questions
Can Xero really save me time on paperwork?
Yes, Xero is built for tradespeople who hate admin. Most tasks, like quoting, invoicing, and matching payments, take just a few taps. Since everything’s stored online, you waste far less time chasing bits of paper or correcting mistakes.
Does Xero work for small UK builders and subcontractors?
Absolutely. Xero is popular with sole traders and growing firms alike. It handles CIS reporting, VAT, and allows job-by-job tracking, making it suitable for the typical needs of UK builders, subbies, and all kinds of trades.
How quickly can I start using Xero?
You can set up a Xero account in under an hour. Many tradies move their accounts over in a couple of days, using bank feeds and app integrations. There’s clear guidance and a 30-day free trial so you can try before you commit.
What if my jobs change last minute or the customer wants extras?
Xero lets you edit quotes, add variations, and update invoices fast. You can send updated paperwork to clients straightaway, keeping everyone on the same page and helping prevent payment disputes.
Can I handle VAT returns and digital tax requirements with Xero?
Yes. Xero is compatible with Making Tax Digital and handles UK VAT rules automatically. It prepares returns and lets you file directly with HMRC. This removes a major headache for anyone above the VAT threshold.
How does Xero help me get paid faster?
Create and send invoices the moment you finish a job. Xero lets clients pay online and sends reminders if payments are overdue. Many tradies report much quicker payments because they look more professional and keep debts in line automatically.
Can my accountant use Xero, too?
Yes, you can invite your accountant, bookkeeper, or even your business partner to see your accounts. Everyone works from the same figures, so no more lost emails or old spreadsheets causing confusion.
Is Xero secure?
Xero uses bank-level encryption and regular backups. You don’t have to worry about losing files or anyone accessing your records without permission. You’re always in control of who sees what.
Does Xero handle payroll if I employ staff?
Payroll is an optional extra in Xero, helping you pay staff weekly or monthly and manage PAYE with HMRC. It suits everyone from sole traders paying themselves to firms with several vans on the road.
Am I locked into a contract with Xero?
No long contracts. Xero is paid monthly, and you can cancel any time if you change your mind. The 30-day free trial lets you check if it fits your business before spending a penny.