Overview of Xero Expenses
Xero Expenses is a comprehensive expense management tool designed to streamline the process of tracking, managing, and reimbursing employee expenses, seamlessly integrated into the Xero accounting software suite.
What Xero Expenses Does
Xero Expenses is targeted towards small businesses, aiming to reduce the time and effort spent on managing employees’ expenses. It automates every step of the expense management process, from capturing costs to reimbursement, ensuring accuracy, efficiency, and real-time visibility into employee spending.
Key Features and Functionality
Mobile App
The Xero Expenses app, available for both Android and iOS devices, allows employees to scan receipts and capture costs as they occur. This mobile functionality enables employers to review and approve expense claims on the go, enhancing the speed and convenience of the expense management process.
User Permissions and Access
Business owners can invite their team to download the Xero Expenses app and assign specific user permissions. These permissions determine whether users can submit, approve, or both manage expense claims, ensuring controlled and secure access.
Expense Tracking and Categorization
Users can set up expense categories such as Travel, Office Supplies, and Meals & Entertainment, which align with their existing chart of accounts. Expenses can be assigned to specific customers or projects, enabling accurate job costing and precise billing.
Automated Receipt Scanning
The app automates the process of extracting key details from receipts, reducing manual data entry and the need for physical storage of receipts. This feature, combined with the ability to add missing details like tax amounts or mileage, ensures comprehensive and accurate expense records.
Approval Workflows and Reimbursement
Xero Expenses includes built-in approval workflows that allow managers to review, approve, reject, or send claims back for clarification. Reimbursements can be made efficiently through integrated payments, with the option to batch pay multiple expense claims for an employee in a single transaction.
Reporting and Analytics
The tool provides detailed reports and analytics, enabling businesses to review spending by time period, category, customer, employee, and more. This visibility helps in managing cash flow and making informed financial decisions. The labels feature allows users to organize multiple expenses into logical groups, further enhancing reporting capabilities.
Integration with Xero
Xero Expenses integrates seamlessly with other Xero features such as Xero Bills, Contacts, Accounts, Tracking Categories, Projects, and Users. This integration ensures automatic journal entries and payment processing through bills, maintaining the integrity of the accounting records.
Pricing
Xero Expenses is available as an optional add-on to Xero’s accounting plans. The standard pricing is £2.50 per month for one user, with an additional £2.50 per month for each additional active user. Xero occasionally offers promotional periods, such as three months of free use for certain plans.
Conclusion
In summary, Xero Expenses is a powerful tool that simplifies expense management by automating key processes, providing real-time visibility, and integrating seamlessly with the broader Xero accounting suite. Its features are designed to save time, enhance accuracy, and improve financial oversight for small businesses.