The way we’re making this work for general business spending is using Xero Expenses in conjunction with our Revolut business account. For each user that is given access (any employee or director who would typically spend money for the business) you can tailor their account to select which bank accounts they spend money from. However, things have changed recently because the Xero Expenses app can now also be used when company money is being spent. Using Xero Expenses for business spending The paperless aspect was very attractive, but use of the app was limited. Which was a shame, because the Xero Expenses app is very good and people can simply snap a photo of their receipt and then throw it away, knowing that the information has been safely transferred into Xero. So that whole area of Xero was largely unused – certainly by most of the companies we work with, anyway. Most staff don’t use their own money to buy things for the business. However, that scenario is becoming quite rare now. So, if your staff are spending their own personal money on business costs and need to be reimbursed for them, Xero is set up for that. In Xero, the functionality for managing expenses has only really catered for that first type of transaction – a reimbursable purchase. The other two are simply paperwork for business purchases (where the payment was either immediate or on credit). Only the first example above is technically an expense in that it needs to be reimbursed to an individual. A bill/invoice for something that was purchased by the business.A receipt for something purchased using the company credit or debit card.A receipt for something purchased by the business owner with her own money.A drawerful of receipts may contain the following types of expenditure:
The very first obstacle to making expenses tracking easier is to clearly understand what expenses are. Even though we’ve been using Xero for nearly a decade, this part of the bookkeeping has never run as smoothly as I felt it should. Managing expenses has always been difficult.
0 kommentar(er)
