Manage business expenses with less admin

FAQs on Xero's expense management

Which Xero pricing plans include expenses?

Xero Expenses is part of your Xero subscription. Check which plan includes it on the pricing page. You only pay for the people who submit a claim in a given month, so quieter months cost you less. Compare what each plan includes.

Xero Expenses is part of your Xero subscription. Check which plan includes it on the pricing page. You only pay for the people who submit a claim in a given month, so quieter months cost you less. Compare what each plan includes.

How do mileage claims work?

If you or your team use a personal vehicle for work, you can log the trip in the Xero Me app. Enter your start point and destination, and Xero records the distance for your claim. Submit it alongside your other expenses, ready for an approver to sign off. See how it works

If you or your team use a personal vehicle for work, you can log the trip in the Xero Me app. Enter your start point and destination, and Xero records the distance for your claim. Submit it alongside your other expenses, ready for an approver to sign off. See how it works

How do I scan receipts in Xero?

Open the Xero Me app and photograph your receipt. Receipt analysis reads the supplier, date and amount, then fills in those details for you. The image stays stored with the claim, so your records are complete at tax time. See how to scan receipts in Xero: https://www.xero.com/uk/accounting-software/claim-expenses/scan-receipts/

Open the Xero Me app and photograph your receipt. Receipt analysis reads the supplier, date and amount, then fills in those details for you. The image stays stored with the claim, so your records are complete at tax time. See how to scan receipts in Xero: https://www.xero.com/uk/accounting-software/claim-expenses/scan-receipts/

How can I organise my expenses?

Xero gives you a few simple ways to keep expenses tidy:

- Assign an expense to a customer or project

- Add a label and choose the right account

- View your spending by category

This makes it easy to see where the money goes and keep everything ready for reporting.

Xero gives you a few simple ways to keep expenses tidy:

- Assign an expense to a customer or project

- Add a label and choose the right account

- View your spending by category

This makes it easy to see where the money goes and keep everything ready for reporting.

Can I assign expenses to specific customers?

Absolutely. When you enter an expense or upload a receipt, you can assign it to a specific customer. From there, add it to their next invoice so billable costs get passed on and you're not left out of pocket.

Absolutely. When you enter an expense or upload a receipt, you can assign it to a specific customer. From there, add it to their next invoice so billable costs get passed on and you're not left out of pocket.

What can I see about expenses in Xero?

Xero shows all your expense activity in one place. You can:

- track the live status of every claim

- filter reports by employee, status or expense account

- watch approved expenses land in your ledger and update your cash flow forecast.

That gives you a clear, current picture of what your business is spending.

Xero shows all your expense activity in one place. You can:

- track the live status of every claim

- filter reports by employee, status or expense account

- watch approved expenses land in your ledger and update your cash flow forecast.

That gives you a clear, current picture of what your business is spending.

What is expense management software?

Expense management software is a tool that captures, approves and reimburses business spending, then records it in your accounts. Xero handles the whole process in one place: your team snaps receipts and logs mileage in Xero Me, you approve claims, and approved expenses feed straight through to your accounts and cash flow view.

Expense management software is a tool that captures, approves and reimburses business spending, then records it in your accounts. Xero handles the whole process in one place: your team snaps receipts and logs mileage in Xero Me, you approve claims, and approved expenses feed straight through to your accounts and cash flow view.

What counts as a business expense?

A business expense is a cost you take on to run your business, such as travel, stock, equipment or software. Some may qualify as allowable expenses under HMRC rules. Check the current HMRC guidance for your situation: https://www.gov.uk/expenses-if-youre-self-employed

A business expense is a cost you take on to run your business, such as travel, stock, equipment or software. Some may qualify as allowable expenses under HMRC rules. Check the current HMRC guidance for your situation: https://www.gov.uk/expenses-if-youre-self-employed

How do employee reimbursements work in Xero?

Once you approve an expense claim, Xero turns it into a bill you can pay from your bank account. If you run Xero Payroll, you can reimburse the amount through your employee's next pay run instead. Either way, the approved cost is recorded in your accounts automatically.

Once you approve an expense claim, Xero turns it into a bill you can pay from your bank account. If you run Xero Payroll, you can reimburse the amount through your employee's next pay run instead. Either way, the approved cost is recorded in your accounts automatically.

Is Xero's expense management HMRC compliant?

Certainly. Xero is HMRC-recognised and ready for Making Tax Digital (MTD), covering MTD for VAT and the upcoming MTD for Income Tax. Every receipt is stored digitally with its claim, so your records stay complete and ready for a return.

Certainly. Xero is HMRC-recognised and ready for Making Tax Digital (MTD), covering MTD for VAT and the upcoming MTD for Income Tax. Every receipt is stored digitally with its claim, so your records stay complete and ready for a return.