Best construction software for Xero users: 4 options compared

The best construction software for Xero users is Eque2 Construct for contractors who need job costing, retentions and CIS alongside Xero, and Planyard for smaller firms wanting a self-serve tool. Tradify and Simpro suit trades and service businesses that mainly need jobs and invoices to sync with Xero.

Xero is easy to run and plenty of growing contractors start on it. It wasn't built for construction, though, so contract costs, applications, retentions and CIS end up in spreadsheets beside it. This guide only includes systems that state they work with Xero, so a contractor can keep Xero and close the gap.

For the detail of how the work splits between the two, see how Construct works with Xero. Eque2 makes one of the systems listed, and every entry was judged by the same method.

How did we choose these?

Every system was judged against the same four tests: construction depth, finance and commercial fit, platform and integrations, and who it suits. On this list, a system also had to state on its own website that it works with Xero, and we recorded what it connects. The order follows how much of the construction finance job each one covers. Facts were last checked on 22 October 2026.

How do the options compare?

Where does Xero fall short for construction?

Xero handles the ledger, VAT, bank feeds and Xero Payroll well. The gaps open up in the work that's specific to contracting.

Cost and value by contract

Xero tracks spend by account and tracking category, not cost against a contract budget. Job costing software fills that gap. A growing contractor needs committed cost, meaning orders and subcontract work not yet invoiced, to see where a job is heading before the invoices land.

Applications for payment and retentions

Contractors get paid through applications, certificates and retentions, not simple sales invoices. Those need holding against each contract with release dates, or money owed gets missed.

CIS against the job

CIS deductions need to sit against the job and subcontract package they belong to, with verification and returns built into the payment run. That's the gap construction software fills alongside Xero.

Reporting that commercial and finance trust

When job reports are rebuilt from Xero exports each month, they're out of date before anyone reads them. Apple Orchard Construction moved onto Construct Cloud and says it has seen an 80% time saving on reporting alone (how Apple Orchard took control of its reporting).

What are the best construction software options for Xero?

1. Eque2 Construct: best for contractors who need contract control alongside Xero

Why we picked it: Construct leaves the ledgers, banking, VAT and Xero Payroll in Xero and adds the construction layer on top. Applications for payment, retentions, subcontractor accounts and CIS are tracked against each live contract.

Best for: Growing contractors and housebuilders who have outgrown spreadsheets beside Xero.

What it covers:

• Job costing and contract and budget management across every live job
• Subcontractor billing: part payments, retentions and CIS, with online HMRC verification and return submission
• Client billing: track project milestones, establish billing dates and invoice completed work.
• Procurement: analyse all historic costs against suppliers to negotiate better rates.
• Role-specific, contract-level and company-wide reporting for commercial, finance and procurement.
• Construction project-specific reporting including cost-to-complete, retentions, WIP and CVR.

Worth checking: You keep Xero and its subscription. Ask how invoices and payments flow between the two and how often they sync.

In practice: Construct customers report big time savings once contract work moves out of spreadsheets. King Builders says Construct has cut its time on manual tasks by around 90% (how King Builders took back its admin time). Eque2 hasn't yet published a case study from a Xero customer specifically.

2. Planyard: best for smaller firms wanting a self-serve tool

Why we picked it: Planyard is cloud construction finance software that automatically syncs approved invoices with Xero. It covers budgets, committed costs and forecasting, and handles CIS and VAT calculations.

Best for: Smaller contractors, fit-out firms and specialist subcontractors. Planyard says it's built for firms typically turning over £5m and above.

What it covers: Budgets, committed costs, invoices, purchase orders, subcontractor orders and variations, forecasting, and CVR and P&L reports.

Worth checking: Its Essential plan starts at £82 per project manager a month, with a 14-day free trial and no card needed. Check how many users you'd need at full price.

3. Tradify: best for trades businesses on Xero

Why we picked it: Tradify is job management software for trades that syncs invoices with Xero. It covers quoting, scheduling and invoicing rather than contract finance.

Best for: Small trades businesses that price and invoice jobs, not contractors running variations and retentions.

What it covers: Quoting, job scheduling, invoicing, overdue payment reminders and online card payments.

Worth checking: Tradify doesn't describe CIS deductions, applications for payment or retentions, so it suits trades work rather than contracting.

4. Simpro: best for service and project contractors on Xero

Why we picked it: Simpro is field service software that connects directly with Xero and manages both service jobs and project work, including multi-stage projects.

Best for: M&E and service contractors who run maintenance visits alongside project work.

What it covers: Service and project jobs, scheduling, invoicing and GPS time tracking for field teams.

Worth checking: Simpro's strength is field service. If most of your work is contracting with subcontractors, check how it handles CIS and retentions.

When does a Xero user need more than an add-on?

An add-on suits a contractor running one company on Xero. Once the business runs several companies, needs group reporting or wants payroll, procurement and finance in one system, a construction ERP becomes the better fit. KonFloor, for example, started on Construct and moved up to Evision as it grew from £6m to £20m turnover, keeping its contract history (why KonFloor moved to Evision).

What should Xero users ask in a demo?

Ask each supplier to show these connected to a Xero test file:

• Post a supplier invoice against a job and show it arriving in Xero
• Run a subcontractor payment with a CIS deduction and show the statement
• Raise an application for payment and show where the retention is held
• Show committed cost on a live job, including orders not yet invoiced

FAQs: best construction software for Xero

Can Xero handle CIS?

Construction businesses need CIS deductions tied to the job and the subcontract package they belong to, which a general accounts package isn't built to do. That's where a construction system alongside Xero comes in. Eque2 Construct verifies subcontractors with HMRC, automates deductions and submits returns against each contract.

Do these systems replace Xero?

No. Every system on this list works alongside Xero rather than replacing it. Eque2 Construct, for example, leaves the ledgers, banking, VAT and Xero Payroll in Xero. Contractors who later want one platform for finance, procurement and payroll would move to a construction ERP instead.

Is Eque2 Construct a good fit for a small contractor on Xero?

Construct suits growing contractors on Xero who manage subcontractors, applications and retentions across several live jobs. A very small firm that mainly needs quotes and invoices may find a trades app like Tradify enough. Planyard is another self-serve option for smaller firms that want published pricing.

What's the difference between job management and construction accounting software?

Job management software, like Tradify or Simpro, runs quotes, scheduling and invoices for trades and service work. Construction accounting software runs contract finance: budgets, committed cost, applications, retentions and CIS. Contractors managing subcontractors on fixed-price contracts usually need the second.

Will my accountant still be able to work in Xero?

Yes. With an add-on like Construct, the ledgers, VAT and bank feeds stay in Xero, so your accountant keeps working where they always have. The construction detail sits in the add-on, and the postings flow through to Xero, so year-end and VAT work carries on as normal.

About Eque2

Eque2 is the commercial and finance platform for construction, trusted by over 3,000 construction businesses. Construct brings job costing and contract management to the Sage or Xero accounts a contractor already runs. Evision runs construction commercial and finance management for larger contractors and housebuilders on Microsoft Dynamics 365 Business Central.