Hi there, I’m Nick Roberts, I am an accountant who has been working in public practice for the last 12 years.
I was an early adopter of Xero in 2007, and have been working with this platform (as well as other accounting systems since). I would like to use my expertise to help people with their use of Xero and other accounting software solutions.
In this blog post I am going to cover a powerful feature of Xero its expenses system.
The expenses system in Xero can be used either on the web based app or mobile apps (Apple and Android)
Xero has very good instructions on how to use expenses in Xero, as below. What I want to cover here is why you should use expenses..
Xero Instructions on How to Use Expenses
About Xero Expenses
Set up Xero Expenses
Applying Payment to a Expense Claim
Why to use Expenses
The expense system is particularly suited where you don’t have a company credit card, and yourself or your employees need to make small regular business purchases for example buying coffee for a customer or stationery purchase.
The expense system has undergone a massive upgrade to its usability, so if you have tried it before and didn’t like it, I suggest giving it another chance.
Classic Expense Claims vs New Classic Claims
It is free to use till the 21st of October 2019.
Tips to Make it Work Harder for you
Separate Mobile App
Xero expenses has its own Mobile app for either Apple or Android, so your employees can have access to this system without the possibility of seeing any other financial information.
The app allows for pictures to be taken of the receipt which will automatically load the expense into Xero with the majority of details already pre entered.
This cuts down on data entry time and you no longer need to keep the receipt.
Integrated Accounting
The expense claims are located within your accounting system, and are integrated with the powerful reporting and analytical functions available in Xero.
Assign Expenses to Projects and Customers / Clients
The expense claims can be allocated to specific projects or customers / clients, which allows the tracking of the total costs of a project or customers / clients.
Projects
Tracking expense claims to projects, allows for you to allocate the total costs of projects, so as to get a comprehensive breakdown of your projects, allowing you to analyse the profit margin on each project more accurately.
Customers / Clients
Tracking expense claims to customers / clients, allows the comparison of the costs of looking after your clients. To see opportunities to increase certain customers / clients billable s, or customers / clients that have significantly higher costs than comparable customers / clients.
Thank you for your time in reading this, if you have any questions or suggestions for future posts please contact me at nick@zero-tohero.com or on 022 405 9312.
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