Using Xero for expense management
How to submit expenses and mileage claims via Xero
Xero Expenses lets employees and directors submit expense claims directly through the Xero app, with receipt photographs attached. There is no need to use paper expense forms.
How to submit an expense
Open the Xero app on your phone. Select ‘Expenses’, then ‘New Expense’. Photograph the receipt. Enter the amount, date, account category, and business purpose. Submit the claim.
The claim then needs to be approved within your company by a director or nominated approver. Approving it in Xero creates the bill and records the amount due. Once approved, we pick it up in our monthly bookkeeping and post it correctly, with the amount added to your Director Loan Account or reimbursed through payroll.
Mileage via the app
Select ‘Mileage’ as the expense type. Enter the date, start location, end location, and business purpose. Xero calculates the reimbursement at the current HMRC rate automatically. No separate mileage log is required within Xero, but keep supporting notes for any HMRC enquiry.
💡 Good to know: Submit expense claims monthly. Accumulating a year of claims and submitting them in one go at the year-end is harder to review accurately and delays your reimbursements unnecessarily.
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