Update, 24 July 2018 – Classic expense claims is staying
Recently, we advised that the classic expense claims function would be retired on 31 January 2019.
It’s become clear that we misread the impact that retiring classic expense claims would have on some customers – and we’re sorry. As a result, we’re now going to keep classic expense claims running as well as roll out the new Xero Expenses function.
If you were using classic expense claims in the six months prior to 10 July 2018, you can continue using it for the foreseeable future. You’ll also be able to try out Xero Expenses for free until 28 September 2018.
From 10 July 2018, Xero Expenses will be available to all new and existing standard and premium plan customers within New Zealand. This new tool takes a modern, mobile-first approach – giving accounting and bookkeeping advisors powerful visibility into how money is spent in their clients’ businesses, while simplifying a complex, time consuming and paper-riden process for small businesses owners.
How it works
Because of the number of people involved in an expense process – the employee claiming the expense, the staff member responsible for approving and processing the expense, and the person who pays the expense – it can often become a disjointed and time consuming workflow. Xero Expenses reduces the hidden costs of processing expense claims for small businesses and saves many hours, while giving advisors even more insight to best advise their clients.
Employees can now simply input expenses from their Xero Expenses app, and have the expense automatically transcribed (or manually inputted) in the Xero platform. The expenses can then be approved for reimbursement, or categorised, by the business or their advisor for quick filing.
Xero Expenses is embedded within Xero and for the first time businesses and advisors will have a single view of their spending habits directly from their accounting dashboard. As more information is gathered, advisors will be able to provide higher value advice on client spending decisions to ensure they are making effective decisions across the company.
Building on the Xero financial web, in the coming months the Xero Expenses API will allow third party applications to deliver additional services and functionality to the millions of small business employees using Xero.
Accessing Xero Expenses
From 10 July to 28 September 2018, Xero Expenses will be available for free, to all new and existing customers and partners on standard and premium plans.
From 28 September 2018, both standard and premium plans will increase in price by $5 per month. Standard subscriptions will be $60 a month, while premium pricing becomes $75 a month, both excluding GST. This pricing includes one active Xero Expenses user with subscribers paying an additional $5 per additional active user.
For more information on how to access Xero Expenses and what this means for you, please see the FAQ directly below.
Q: How is new Xero Expenses different to other online solutions?
The purpose of Xero Expenses is to improve the experience of managing expenses by increasing the ways our customers can automate the entry of data into Xero. It’s usually the case that you can get more out of the Xero platform when using specialised integrated apps and this remains the case with Xero Expenses. For more information on using Xero Expenses alongside third party apps, visit our app advisory playbooks.
Q: Why Xero Expenses vs Excel spreadsheets and emails?
Customers and accountants have to process expense claims as a normal part of doing business. It is the manual, clunky process handled outside the accounting platform that is the cause of the pain by running this process with Excel and emails and drives the hidden cost to you. While you don’t have to pay for Excel there is significant cost in your time and frankly, energy sucked from using the wrong tools to do the job.
Excel was built to handle calculation and analysis like forecasting and budgeting. Emails serve the purpose of communication (kind of quickly). Neither of these tools were built with the intention of processing an expense claim through the several parts of that currently disjointed process.
Automating the process alleviates that pain you are enduring and reduces the hidden cost you are paying.
Q: How do I get started with the new Expenses?
From 10 July 2018, under the Accounts tab in your Xero account, you’ll see a new option labelled Expense claims. The first time you click on this, you’ll receive an introduction message and be guided through a quick three-step set-up process, including: 1, Selecting your expenses users; 2, Selecting the account codes you want to be able to match expenses claims to; and 3, Accepting authorisation of receipt scanning.
Q: What is the simplest way to migrate from my current expense claiming tool?
We recommend keeping the workflow current so you don’t accidentally double enter data. Make sure you close off all expense claims from your old system and export a copy of all completed claims for your records. If you’d like a copy in Xero for record-keeping purposes (IRD requires you to keep all business records for seven years), you can upload a copy into the Xero files library or attach a copy directly to the applicable transaction. Once you start using Xero Expenses, you’ll enjoy a full record for your expenses in Xero and attached to the applicable transaction records.
Q: How will I know how many of my staff will be charged for the Xero Expenses?
The new Standard and Premium plans include expenses for one ‘active user’. Any additional ‘active users’ will cost $5 each per month. A user is an ‘active user’ if one or more (there’s no limit) expense claims is assigned to that person in a month. You’ll be prompted when you first use the new expenses tool to confirm which staff members can access it and it’s easy to manage these users in your Xero permissions settings.
Q: When will I see the changes on my invoice from Xero?
The price changes take effect from 28 September 2018 and will show on invoices from this date onwards. The change-over invoices will likely have two lines – the period up to the price change and the period after the change.
Q: If there’s another Xero plan that works better for me/my clients, can I change?
Yes, you can upgrade or downgrade from My Xero and the pricing plan will automatically change. Please note that you can only downgrade pricing plans once every 30 days.
If you have any further questions please contact firstname.lastname@example.org