Expense apps are a timesaver, both for the day to day user, as well as the accountant receiving the expenses.
As a user, all you have to do is take a photo of the receipt from your mobile app, file or add any comments (all other data is pulled in via OCR “Smart-scan”), then all of these expenses get batched together and sent on a weekly basis to the accountant, who can then manage them in bulk.
Best of all… for light users… it’s free!
- Figure: Good Example – Hubdoc is free with Xero
For better results claiming your receipts, please read Do you know how to enter a Hubdoc receipt?
Which app to assist with reimbursements?
We have specifically looked at utilising the Xero Expense app or Hubdoc app for reimbursement purposes.
Xero Expense app:
The Xero Expense app was originally designed to streamline the reimbursement process for employees however, it does have an added cost of $5 per active user per month. This amount is not massive when only one employee or the business owner is making numerous reimbursements per month. However, when multiple employees can request a reimbursement at any month, the cost will go up.
Example 1 - 50 employees can all make one single reimbursement in a month and it will cost an additional $250 that month to make it.
Example 2 - an employee can make a once-off claim for a $10 coffee with a client, however, it will cost the business $15 to make the reimbursement and losing value in the cost.
The best feature of Xero Expense reimbursement is that the employee's bank details are automatically assigned when they submit a claim. The approver (Accountant or Business Owner), approves of the expense, it will be generated as a payable invoice in the 'Bills' section of Xero and dealt with like any other bill.
An alternative which is slightly less convenient, however free at all times, is to use Hubdoc. Users will simply have to follow the usual steps of submitting expenses with the app, and save the expense to an 'Expense Reimbursement folder' to be approved.
The Accountant can review this folder weekly to approve the expense, which takes the same amount of time as Xero Expense app. The added inconvenience is that the employee's bank details are not automatically assigned the very first time. The Accountant will have to create the Employee as a separate contact on Xero with the bank details completed.
Once the Employee is created as a contact on Xero for the first time, it will not be required again. All approved expenses from Hubdoc will come through to the 'Bills' section, the same as the Xero Expense app.
So which app? Neither app is inferior to the other app for reimbursement purposes. The value of each app is increased depending on the number of employees, standards and frequency of expenses for the business. We do add that, if you are using Hubdoc app already and your business won't lose any value using Hubdoc for reimbursements, you may want to use it for reimbursements so there are fewer apps to remember and download.
What are the most popular expenses apps?
- Figure: Google Trends (September 2020) show that Hubdoc and Receipt Bank are the most popular apps. More at
- Figure: Google Trends (September 2020) show
Receipt Bank as the most popular. More at