Xero Expenses – how is it changing?

You may have heard that how expense claims in Xero are recorded is changing. But don’t panic if you were using the classic expense claims prior to 10 July 2018, as you will be able to continue using this service, you can read more about continuing to use the classic claims here . However, there is an option, that you can change over to the new updated expense claims – these are the updates:

IMGP8723Automated data capture – when you take a photo and enter a brief description xero will allocate the receipt to the nominal code.  Or you can chose to enter the details manually.

Flexible user permissions.  There are levels of users:

    1. Submitter can submit and view their own claims
    2. Approver is able to submit their own expense claim and submit a claim on behalf of others and approve expenses
    3. Admin manages all expense settings as well as approver role permissions

Prevention in miscoding – set up the codes you want to allow expenses to be coded to.  This avoids expenses being coded to other codes you don’t want them to be coded to.

Improved reports – In the explorer tab, under the expenses, you are able to view a breakdown of expenses by account code or employee.  It also lists them out by approved and paid and submitted.

You can enter on behalf of somebody else.

Able to enter multi-currency.

The new expenses feature is free to try until 28th September for business editions OR the good news is Xero have decided to keep classic expense claims, so if you’ve just got used to it you are in luck it’s here to stay.

If you like the new expenses app then you can continue to use.  After 28th September 2018 there will be a small charge.

The initial cost is £2.50 minimum for using the app and for the first user.  Then it’s £2.50 per additional user submitting an expense claim within the month (You are only charged for the number of people submitting a claim within the month. The charge is per user not expense claim)

  • So for 1 user per month £2.50 (unlimited amount of expense claims)
  • 2 users per month £5.00 = 2 people submitting an unlimited number of expense claims
  • 3 users per month £7.50 = 3 people submitting an unlimited number of expense claims.

You are only charged in the months that a user submits a claim

If you are setting up expenses for the first time then here’s some steps you can follow to get going (only the subscriber of the xero account is able to activate the expenses app):

  1. In the Accounts menu, select Expense Claims.
  2. Click Get started now.
  3. The screen you see is based on whether you have other users in your Xero organisation:
    • If you’re the only user click OK to continue, or invite new users to Xero and give them access to Expenses. There are three Expenses user roles to choose from.
    • If you have other users, select permissions for your individual team members, then click Save roles. If you don’t want to add other users to Expenses, click Just me for now.
  4. ​Select the accounts you want your team to use when creating expense claims, then click Save accounts.
  5. Click either:
    • Enable receipt processing + manual entry to upload receipt data by capturing an image of your receipts with your Android or iOS device.

By enabling receipt processing, you’re allowing a trusted third party to access your receipt data so it can be digitised as expense content in your Xero subscription. You also authorise to enable this feature on behalf of your organisation.

    • Manually enter information each time if you prefer adding the data yourself.

If you would like to switch to using the new expenses app permanently then here’s what you need to do:

7 steps from old to new:

  1. Complete any outstanding expense claims in the classic expenses.  The classic expenses will be phased out by 31 January 2018
  2. View and approve all claims
  3. Know where you can view historical expenses
  4. Get started with the new expenses feature in xero
  5. Set up staff access
  6. Ask staff to submit a claim
  7. Review and approve their claims