Manage Expense Claims with Xero Expenses
How to set up Xero Expenses, submit receipts via mobile, and manage approval and reimbursement workflows for staff.
Xero Expenses simplifies expense claim processing with mobile receipt capture, streamlined approval workflows, and automatic accounting integration — reducing the admin burden for both staff and managers.
1. Set Up Xero Expenses
From the dashboard, go to Business and select Expense claims. Add Xero Expenses to your subscription and complete the initial setup:
- Choose whether Xero should automatically process receipts when a photo is taken on mobile, or whether staff enter receipts manually.
- Select the accounts to use for expense claims and mileage claims.
- Assign appropriate roles to your staff.
For non-reimbursable expenses (purchases made on a company card), configure company bank accounts in settings and assign them to the relevant employees.
2. Submit Expenses on Mobile
Encourage staff to download the Xero Expenses mobile app. From the app, employees can:
- Take a photo of a receipt — Xero processes the details automatically.
- Or enter receipt details manually.
- Verify the details, add a description, and submit the claim.
Additional options when submitting:
- Itemize — split a receipt across multiple account codes.
- Tracking — add a tracking category if applicable.
- Assign to a customer or project — charge the expense to a Xero project.
- Labels — organise receipts with custom labels (e.g. "Overseas trip").
3. Approve Expenses
Admin users receive a notification when a staff member submits an expense. Approve from the mobile app or from the To review section in Xero.
4. Automatic Accounting
Once approved, Xero automatically creates:
- A spend money transaction for non-reimbursable expenses (company card).
- A bill ready for payment for reimbursable expenses (personal card, to be paid back to the employee).
5. Mileage Claims
Use the Xero Expenses app to capture mileage claims. Enter:
- Total distance
- Standard rate
- Start and end locations
- Description, date, and account
6. Analyse Spending Trends
Use the Explorer tab in Xero Expenses to analyse spending by account or by employee over time.
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