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Xero Expenses – beautifully reimagined

Posted 2 weeks ago in Product by Laura Cardinal
Posted by Laura Cardinal

Expense claims are an administration burden for all businesses. What should be a simple task of reimbursing employees can quickly slide into a paper-filled back-office nightmare.

As one of our oldest features in Xero, the classic expense claims functionality was overdue some love and we’ve been working closely with our accounting partners and small business customers to reimagine it from the ground up. Today we’re very excited to announce the global launch of the all new Xero Expenses.

A better way to manage expense claims in Xero

The new Xero Expenses offers small businesses a more efficient way to manage expense claims with:

Faster expense capture to reduce data entry through automatic scanning of receipts, and eliminates the need to store paper versions.

iOS and Android apps push notifications to let businesses, employees and advisors capture, submit and keep up to date on the status of expense claims from anywhere.

More flexible user permissions to give complete control of who can view, submit, and approve or pay an expense claim for or on behalf of someone else. Learn more.

Simple and intuitive workflows to make it easy to see where an expense is at, review and approve all unpaid expenses, and create batch payments to get employees paid promptly.

Greater insights and powerful analytics to empower businesses and their advisors with a detailed and real-time understanding of spending habits and patterns.

And with multi-currency, relevant notifications and seamless Xero accounting integration, the new Xero Expenses is smarter, easier to use, and designed to benefit both the small business and their employees.

Try new Xero Expenses from 10 July 2018

We believe that small businesses will love the new Xero Expenses and to celebrate our launch, businesses subscribed to Xero before 10 July 2018 can experience it absolutely free until 28 September 2018. That’s up to 80 days of better, beautiful and effortless expense management in Xero for no additional cost!

Check it out in Xero by going to Expense Claims under the Accounts menu, or download the new Xero Expenses mobile app on Android or iOS for the full experience.

If you decide to continue to using the new Xero Expenses after 28 September 2018, additional charges won’t start until the subscriber’s first billing date after 28 September 2018. See your local Xero Expenses web page for full details on this offer and your local pricing.

We’ll be saying goodbye to our classic expense claims functionality in Xero as it retires on 31 January 2019. Information from any previously processed expenses will be accessible as read-only through Xero reporting once classic expense claims retires. Get more detail on Xero Central and, don’t worry, we’ll update partners and those businesses affected by this change as this date draws near.

Want to know more?

Head over to the Xero Expenses page, or Xero Central for more details on how new Xero Expenses can improve your business.

44 comments

Julianne
July 10, 2018 at 2.06 pm

I need something similar to this for business credit card expenses. Is there a way this can be used for credit card purchases or is there plans to do something similar in the future for credit card purchases?

Thanks

Damian Smith in reply to Julianne Xero
July 12, 2018 at 12.19 pm

Hi Julianne,

Thanks for getting in touch. To continue to reduce the administration burden for small businesses Xero is committed to investing in the continuous improvement of Xero Expenses application. Potential feature enhancements do include providing the ability to pay back to business credit cards among other enhancements.

Non-reimbursable expenses aka “Spend Money” transactions can be processed through the Xero Business web and mobile apps. And, as a core part of the current bank rec experience, the Spend Money functionality will remain in the Xero Business apps.

Just like our core Xero product, we’ll be monitoring Expenses feedback and feature requests to help us prioratise additional functionality and integrations that add even more value for small businesses. You can share and vote on your requests on our Community page so that we can get an idea of demand. https://community.xero.com/business/topic/23/.”

Cheers

Damian

John P in reply to Damian Smith
July 12, 2018 at 11.30 pm

This is literally the only thing we do with expenses and you are removing it? This is really disappointing.

Sam Kerins in reply to John P Xero
July 13, 2018 at 4.02 pm

Hi John,
I’m sorry you’re disappointed and that you don’t have the need for some of the new functionalities. I hope you don’t mind me making a suggestion? Please try out Expenses for the next three months, while it’s free to existing users. It has features that many of our small-business customers have requested, and we think it’s a far superior product to the original expenses function. We value customers like you and their feedback, so please reach out as we’d be keen to hear what you think of it.
Cheers, Sam

Bradley Webster
July 10, 2018 at 5.22 pm

If the wheel ain’t broke why try and fix it. In other words why try and over complicate things.

Paul
July 10, 2018 at 6.11 pm

Faster expense capture to reduce data entry through automatic scanning of receipts, and eliminates the need to store paper versions.

Does this mean all the details from the expense will be extracted (price, tax, date, invoice number supplier name) and populated in a draft purchase / receipt for approval?

Thanks,
Paul.

Chris T
July 10, 2018 at 7.17 pm

With the introduction of Xero Expenses and removing away the classic expense claim function, does it mean businesses have no choice but to subscribe to Xero Expenses? Is there other way to enter expense claim in Xero?

Damian Smith in reply to Chris T Xero
July 12, 2018 at 12.26 pm

Hi Chris,

Thanks for reaching out. The current expenses feature will remain open for claiming and paying expenses until 31 January 2019. After this date, it will become read-only. All user data and expenses reports will remain available and accessible.

In the meantime, users are encouraged to start testing out and using the new Xero Expenses over the next three months while it’s free. The new Expenses has many more functions than the original expense claims feature – check out the full details here: https://www.xero.com/features-and-tools/accounting-software/expenses/. We’d be keen to hear what you think of it.

Please note that “Spend Money” transactions can still be processed through the Xero Business web and mobile apps. And, as a core part of the current bank rec experience, the Spend Money functionality will remain in the Xero Business apps.

Cheers

Damian

Stuart McIntyre
July 10, 2018 at 9.02 pm

I’m intrigued by the pricing model you’ve selected for this. I imagine you’ve priced this feature to compete with Expensify and other similar dedeicated solutions.

However, I’m personally comparing the pupm pricing with other business/productivity solutions such as Office 365 (£3.80), GSuite ($3.30), Workplace by Facebook (free/$3) and so on, and cannot fathom how an expenses solution is worth almost the same cost per month, particularly when we have been used to a similar service within the price we pay for Xero. Solutions such as those I’ve mentioned can enable our employees to generate value for our organisations, whereas yours is simply an admin service.

I cannot see how existing Xero customers can justify this additional cost every month, no matter how impressive the technical solution.

Damian Smith in reply to Stuart McIntyre Xero
July 12, 2018 at 12.29 pm

Hi Stuart,

Thanks for writing. I understand where you’re coming from regarding the cost of the new Expenses.

We keep a careful watch on the other options out there and we’ve worked closely with small businesses, accountants and bookkeepers to build Expenses. We’re confident the price fairly reflects the functionality and value it offers businesses and their employees. We accept that some people will have always have a preference for other solutions.

Can I make a suggestion? Give Expenses a try over the next three months while it’s free to existing users. We’d love to have you test it out and give some feedback over on our Community page so that we can get an idea of how we can improve functionality to make it more valuable to your business. https://community.xero.com/business/topic/23/.”

Cheers.

Damian

Paul
July 10, 2018 at 11.19 pm

So essentially the price of Xero is now going up, because a feature which used to be included now costs extra going forward?

Damian Smith in reply to Paul Xero
July 12, 2018 at 12.31 pm

Hi Paul,

The new Expenses has many more functions than the original expense claims feature – check out the full details here: https://www.xero.com/features-and-tools/accounting-software/expenses/. We’re always analysing the market, and we worked closely with businesses, accountants and bookkeepers on Expenses. We’re confident the pricing fairly reflects the unique value it offers.

Just like our core Xero product, we’ll be monitoring Expenses feedback and I’ll be sure to pass on your feedback to the team.

Cheers,

Damian

Malcolm Fleming
July 10, 2018 at 11.50 pm

@Paul – sadly this feature rarely works and you have to enter most of the details manually…

Damian Smith in reply to Malcolm Fleming Xero
July 12, 2018 at 12.37 pm

Hi Malcolm,

Thanks for getting in touch. Just wanted to double-check you’re referring to the new Xero Expenses product here? It sounds like you might be getting frustrated with the manual aspects of “classic” expense claims, which is definitely why we’ve launched this great new product.

The new Expenses automatically converts the; amount, purchase date, supplier and account fields captured in photos of receipts into text and is a much more comprehensive and powerful expense management solution than the classic expense claims – check out the full details here: https://www.xero.com/features-and-tools/accounting-software/expenses/

We keep a careful watch on the other options out there and we’ve worked closely with small businesses, accountants and bookkeepers to build Expenses.

Cheers

Damian

Luke
July 11, 2018 at 12.16 am

You mention a new iOS app, but I only see the old Xero Expenses app (with 2.4 star rating and last updated a month ago) on Australian App Store. Will this be updated?

Damian Smith in reply to Luke Xero
July 12, 2018 at 12.35 pm

Hi Luke,

Thanks for getting in touch. The new Xero Expenses iOS app has now been updated on the Australian App Store. Hop in and check it out

Thanks

Damian

Alan Turner
July 11, 2018 at 1.06 am

Hi Xero,

It’s very disappointing that the existing expense claim system, which attracts
no additional fees, will be removed in order to force customers to use a new
scheme which attracts fees.

If the new system is really worth the additional money, then let customers
select it of their own free will.

My own company has no need of the extra features, and this announcement
is the equivalent of Xero doubling in cost from Jan 19 on. I may spent the time
looking for alternative accounting system, as will many others based on the large
number of comments on your blog. Please listen to your customers, and respect
their preferences.

Thanks,
Alan

Damian Smith in reply to Alan Turner Xero
July 12, 2018 at 12.38 pm

Hi Alan,

Thanks for taking the time to share your thoughts.

We analysed the software market very carefully before making today’s decision and are confident that the Expenses pricing fairly reflects the superior value and experience.

However, this is an issue that’s come up in other comments on this blog. I’ll add your voice to feedback that we’re relaying to our Expenses team.

Can I make a suggestion? Give Expenses a trial for the next three months, while it’s free to existing users. We’d been keen to hear what you think of once you’ve tested it out.

Cheers,

Damian

Tyler
July 11, 2018 at 9.46 am

Let me get this straight…you are now going to begin charging additional money for access to a core feature of your product? All under the guise of ‘new and improved’? Why not just come out and say plainly ‘we want more profit, and thus are making current customers’ product less valuable.’

Damian Smith in reply to Tyler Xero
July 12, 2018 at 12.42 pm

Hi Tyler,

Thanks for getting in touch. The new Xero Expenses is a much more comprehensive and powerful expense management solution that does so much more than the classic expense claims – check out the full details here: https://www.xero.com/features-and-tools/accounting-software/expenses/

We keep a careful watch on the other options out there and we’ve worked closely with small businesses, accountants and bookkeepers to build Expenses. We’re confident the price fairly reflects the value it offers businesses and their employees.

Can I make a suggestion that I hope doesn’t sound impertinent? Please try out Expenses for the next three months, while it’s free to existing users. It has features that many of our small-business customers have requested, and we think it’s a far superior product to the original expenses function. We’d be keen to hear what you think of it.

Cheers,

Damian

Graham Hyman
July 11, 2018 at 11.45 am

Hi Paul, I have been using a 3rd party app for this and was thrilled to see Xero add the feature as a built-in. After trying it though I am quite disappointed. Until the following has been added (or I am shown where the features exist in the Xero app but I have missed them) I will continue with my current 3rd party app, which is only $8 more p.a. than the extra price to use the Xero app.
There is no auto crop (or opportunity to crop) the receipts
There is no option (on Android at least) to prevent the photos being stored to the phone’s gallery.
The processing time was very slow (well over 20 minutes)
There is no opportunity to choose the category prior to submitting the receipt from the app
There is no way to set the camera as the default, and automatic, way to capture a receipt
As the captured receipts are treated as Expenses the contact for everything is always the user, there is no way I can find to change the contact to the merchant.
All of the above are default features in competitors’ apps, I trust they become part of the Xero app very soon

Damian Smith in reply to Graham Hyman Xero
July 12, 2018 at 12.44 pm

Hi Graham,

Thank you for taking the time to try and share feedback on Xero Expenses. I’ll add your voice to feedback that we’re relaying to our Expenses team.

Xero Expenses is suited for companies looking for a straightforward, simple solution to processing expense claims. Since all you need is right inside Xero you don’t have the hassle of multiple applications and have one single source of data for your claims and expenses. After careful consideration and research, we’re confident the pricing fairly reflects the functionality and value.

If your business has more complex expenses management needs, like those that come with more employees, more transactions, more rules and more complexities then one of our fantastic app partners may be more effective. .

Just like our core Xero product, we’ll be monitoring Expenses feedback and feature requests to help us prioratise additional functionality and integrations that add even more value for small businesses. You can share and vote on your requests on our Community page so that we can get an idea of demand. https://community.xero.com/business/topic/23/.”

Thanks,

Damian

Bruce
July 11, 2018 at 3.07 pm

So after 31 January 2019, to continue to enter expenses (using this new and by then only way), subscribers will be required to ” add it to their Xero plan” (presumably at extra cost). Bottom line: will we be required to pay more for a service that is currently included in the standard plan?

Demian Mclean in reply to Bruce Xero
July 11, 2018 at 5.07 pm

Hi, Bruce. Thanks for writing in. You’re correct: after 31 January, the original expense claims feature will no longer be available to make new claims. The new expenses is a substantially different service, and it includes many more features than the old expenses. We’d encourage you to try it out for the next three months, while it’s free to existing Xero customers.

Euan
July 11, 2018 at 8.07 pm

Why is it not possible to choose payment method on the new expenses tool? This feature was available on the old expenses tool and is critical for reconciling company credit cards as well as employee expenses.

Damian Smith in reply to Euan Xero
July 12, 2018 at 12.56 pm

Hi Euan,

Thank you for giving Xero Expenses a try. Xero Expenses is currently for reimbursable expense claims from staff members and contractors.

Non-reimbursable expenses aka “Spend Money” transactions can be processed through the Xero Business web and mobile apps. And, as a core part of the current bank rec experience, the Spend Money functionality will remain in the Xero Business apps.

Just like our core Xero product, we’ll be monitoring Expenses feedback and feature requests to help us prioritise additional functionality and integrations that add even more value for small businesses. You can share and vote on your requests on our Community page so that we can get an idea of demand. https://community.xero.com/business/topic/23/.”

Cheers,

Damian

Darren
July 11, 2018 at 9.02 pm

I can’t help getting the feeling that now Xero is a great success, it no longer cares for the small customers and will steadily price itself out of that market. We (two-person company) have about five expense claims a year, and the existing functionality was satisfactory for us. We took the bait and now you’ve switched. What part of the standard service will be the next one to become a chargeable extra?

Damian Smith in reply to Darren Xero
July 12, 2018 at 12.54 pm

Hi Darren,

Thanks for sharing your feedback and we do understand where you are coming from. However, since early 2016, we’ve devoted almost $250 million to research and development so we can continually deliver new tools to our small business customers. We don’t add additional charges for features every year, but we do revisit them from time to time.

Xero Expenses is a new module which offers advanced expenses management within the existing Xero platform. It is a powerful tool available to all Xero subscribers and offers functionality that isn’t available in the existing expenses feature.

We are committed to constantly improving the Xero platform to make life easier for small businesses and their advisors. Xero Expenses is a significant example of this, and will bring significant benefits to our users. Charges for these products are about funding further innovation and improvement which benefit our users.

Cheers,

Damian

Colin
July 11, 2018 at 9.22 pm

I’ve tried out the app – there’s no longer the ability to assign it to a bank account – does this mean it’s now only for out of pocket expenses?

Damian Smith in reply to Colin Xero
July 12, 2018 at 12.47 pm

Hi Colin,

Thank you for giving Xero Expenses a try. Yes that is correct. Xero Expenses is currently for reimbursable expenses claims from staff members and contractors.

Non-reimbursable expenses aka “Spend Money” transactions can be processed through the Xero Business web and mobile apps. And, as a core part of the current bank rec experience, the Spend Money functionality will remain in the Xero Business apps.

Just like our core Xero product, we’ll be monitoring Expenses feedback and feature requests to help us prioritise additional functionality and integrations that add even more value for small businesses. You can share and vote on your requests on our Community page so that we can get an idea of demand. https://community.xero.com/business/topic/23/.”

Cheers,

Damian

Andrew
July 12, 2018 at 12.19 am

Will the 25% NFP discount apply to the additional charges for using the new expense claims system?

Sam Kerins in reply to Andrew Xero
July 12, 2018 at 12.35 pm

Hi Andrew,
The 25% not for profit discount won’t apply to the per active user fee.

Mick
July 12, 2018 at 3.07 pm

Removing a feature we are paying for and then charging for the updated. Good job. 🙁

Sam Kerins in reply to Mick Xero
July 13, 2018 at 4.02 pm

Hi Mick,
Thanks for getting in touch. We’re sorry you are unhappy about the changes. Xero Expenses is a new module which offers advanced expenses management within the existing Xero platform. It is a powerful tool available to all Xero subscribers and offers functionality that isn’t available in the existing expenses feature.

We are committed to constantly improving the Xero platform to make life easier for small businesses and their advisors. Xero Expenses is a significant example of this, and will bring significant benefits to our users. Charges for these products are about funding further innovation and improvement which benefit our users.

Cheers, Sam

Michael
July 12, 2018 at 7.08 pm

What will happen to the Xero Business Dashboard “Expense claims” widget? Even though I have upgraded to the new expense solution, the widget is still showing the old expense claims.

Sam Kerins in reply to Michael Xero
July 13, 2018 at 4.01 pm

Hi Michael,
We are happy to help! Your “classic” expense claims widget will still show the details of claims created in “classic” expense claims. The Expenses team is working on a new dashboard widget, for new Xero Expenses, and we hope to get this out in the next few months. In the meantime, you can either go into Expenses and use the explorer to view expense totals, or through the Expense claim detail report.
Cheers, Sam

Michael
July 13, 2018 at 12.09 am

Why is it so slow? I have downloaded the Xero Expenses app for my iphone, enabled receipt processing and scanned two invoices. It took over a minute for the the iphone to “save” each invoice (I pressed ‘Save as draft’), and the two receipts have now been in ‘Processing’ status for 20 minutes. Is each receipt being manually processed? When can I expect them to be processed?

Sam Kerins in reply to Michael Xero
July 13, 2018 at 4.02 pm

Hi Michael,
Your submitted receipts can take a bit of time to be processed by our third party. It can take anywhere from a couple of minutes to an hour. If you need to enter it urgently, you can always add the expense details in manually. Thanks for your questions and we’re here to help if you have anymore concerns.
Cheers, Sam

Adam
July 13, 2018 at 12.57 am

We also run a subscription service and we’re going the other way. We’re simplifying so that features are included in a single price. Perhaps you could do the same by, say, including the advanced expenses in the more sophisticated service levels and classic expenses for the basic plan. One of your key differentiators is simplicity, including no per user fees. And people love the entry level for the tiny business.
Don’t worry about what others do; blaze your own trail with the customer in mind.

Sam Kerins in reply to Adam Xero
July 13, 2018 at 4.03 pm

Hi Adam,
Thanks so much! Yes our customers are at the top of mind when we work on building new functionality into our product. I appreciate you taking the time to give us that feedback and we really value this input so I’ll add your comment that we’re relaying back to our Expenses team. Cheers and all the best of success for your business Adam!
Cheers, Sam

Naomi Rusher
July 13, 2018 at 2.45 am

I am a current user of Xero, but not for fully processing staff expenses, I do these with an Excel spreadsheet every month and post a purchase into Xero with the staff member as the supplier. This gives me control of the date of payment to the staff member (once a month), the Nominal code for our company budget lines, the Tax Rate if there is VAT on the receipt, and any currency conversions if required based on the exact date of the spend. I am interested in paying for a more automated expenses system. How will Xero Expenses manage this crucial data – I can only find information saying that the staff member can upload a photo of their receipt – who would go in and complete the full details of each transaction? Some of the staff submit up to 50 receipts per month. Many thanks.

Sam Kerins in reply to Naomi Rusher Xero
July 13, 2018 at 4.03 pm

Hi Naomi, Thanks for reaching out. We’re happy to clarify how the new Xero Expenses will work. The receipt scanning feature in Xero Expenses will allow your employees to submit an expense with just a picture of the receipt and a quick description of what the purchase was for. Of the data you mentioned, we’ll extract the date of purchase, account code, and currency from the receipt automatically. When there’s a foreign currency on the receipt, Expenses will automatically calculate the daily exchange rate as well as the converted total for you. Regarding the account code, because our users often have very different account codes, we might guess the wrong one at times. For approvers and admins in Expenses, we’ve made it as easy as possible to view the details of an expense and make the necessary changes before approval. You’ll be able to edit the date, account code, tax rate, and currency as an approver or admin in Expenses. We’re also currently working on some improvements to how we support bulk actions within Expenses – these enhancements will be coming soon to help you manage larger volumes of receipts. We’d encourage you to try out Expenses for the next three months, while it’s free to existing users. Let us know what you think!
Cheers, Sam

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