This is part of our Expenses and Data Capture series (Chapter 4 of the Xero tutorial hub):

• Lesson 1: Capturing Receipts and Bills with Hubdoc in Xero
• Lesson 2: Setting Up Supplier Rules in Hubdoc
• Lesson 3: Managing Supplier Bills and Payments in Xero
• Lesson 4: Recording Employee Expense Claims and Mileage in Xero

If your staff pay for things out of pocket, from fuel to small supplies, Xero has a simple way to track and reimburse it.

1. Submitting an expense claim

Employees can submit a claim with a photo of the receipt directly through Xero or the mobile app.

2. Reviewing and approving claims

As the business owner, you review and approve claims before they are paid, keeping a clear record of what was spent and why.

3. Recording vehicle mileage

For vehicle use, mileage can be logged and reimbursed at a set rate per kilometre, which also creates a record for tax purposes.

4. Reimbursing the employee

Once approved, claims can be included in the next pay run or paid separately, whichever suits your process.

Xero’s YouTube channel covers expense claims: watch the official Xero tutorial. Our registered BAS agents can help make sure mileage and expense records hold up at tax time.