Integrate Directly With Xero
Companies with Team or Corporate policies can integrate with Xero. The integration enables seamless import of expense accounts directly from Xero, and additionally, expense reports are sent to Xero as bills awaiting payment.
Connect Expensify and Xero
In order to connect Expensify and Xero, you will need to create an expense policy.
Step 1: Navigate to the policy settings
Navigate to the Connections section of the policy settings. To get there go to Admin > Policies > [Policy Name] > Connections. From there, choose to create a new Xero connection.
Step 2: Log into Xero and choose your organization
Enter your Xero login information and choose which organization within Xero you want to connect with Expensify. If you wish to connect multiple Xero organizations to Expensify, you can do so by creating multiple expense policies. You can attach a separate organization to each policy (a popular option for accounting firms).
Step 3: Map options for import
Upon connecting Expensify with Xero, the first step is to choose how to configure the information brought over from your Xero organization. Expense accounts and accounts that have “Show In Expense Claims” enabled will come over by default as “Categories” in Expensify. Next you will need to decide whether to enable tracking categories from Xero. The options for each set of tracking categories are as follows:
- Tag - Selecting this option will pull the tracking category list into Expensify at the line item level. This gives the end user the ability to select a tracking category per expense.
- Report Field - Selecting this option adds the tracking category options at the report level. This means that you would select the tracking category once per report.
- Xero contact default - Selecting this option will use the defaults set for the Xero contact record of the person submitting the report. If no contact already exists or there are no defaults set, the field will be left blank.
Our billable expense feature is great for cases where you know a particular customer (contact) will pay some expense, but not yet which Xero sales invoice it will appear on. Once enabled, billable expenses import Xero customer contacts as Expensify tags (line-item detail) that employees or approvers can use to classify expenses. After being exported to Xero, these billable expenses can then be placed on a sales invoice to that customer once you decide to create the invoice.
Note that in order for an expense to be available to place on a sales invoice, you'll need the following:
- Billable expenses must be enabled in the sync options dialogue for Xero (pictured above and accessed by going to Admin > [select policy] > Connections > Configure)
- The expense must have a customer tag selected (pictured below)
- The expense must be marked as billable (pictured below)
Step 4: Set options for export
Reimbursable expenses export to Xero as bills awaiting payment, with the date you set: either the report's submitted date, the report's exported date, or the date of the last expense on the report. For any non-reimbursable expenses (company card transactions), you will need to decide which bank account to use in Xero. Every non-reimbursable expense on a report will create one line item with the appropriate expense details in the bank account you choose.
Step 5: Set Advanced options
You also have the ability to set the state of purchase bills on export to Xero. The default is awaiting payment, with the additional options being draft and awaiting approval. You can also sync the report status between Expensify and Xero, whereby if you reimburse a report via ACH direct deposit in Expensify, the purchase bill will be marked as paid in Xero (and vice-versa). You'll also want to select an account in Xero to post that bill payment.
Step 6: Choose your categories
Once the connection has been created, navigate to the Categories section of the policy. Admin > Policies > [Policy Name] > Categories. You will notice that your chart of accounts from Xero has been pulled in as Categories in Expensify. You can use the “enabled” check-box to choose which categories will be available for your employees to use.
Its important to note that only expense accounts and any account that has “Show In Expense Claims” enabled will be imported from Xero.
That’s it! The Xero integration is now ready to use.
Export from Expensify to Xero
To export from Expensify to Xero, navigate to the Reports page and select the reports you wish to export. Then click “export to” and choose “Xero”. It is important to note that only the admin that connected to Xero in Expensify will be able to export expense reports from Expensify.
Once the reports have been exported, you will see the Xero icon next to the exported reports on the Reports page.
After exporting to Xero, we'll post a link to the item in Xero as a report comment in the report itself.
You can also get straight from the item in Xero (like this purchase bill) to the report in Expensify via the 'Go to Expensify' button.
Sync Xero in Expensify
Any time you update your chart of accounts in Xero, you will also need to be sure to update in Expensify. In order to do this, go to Admin > Policies > [Policy Name] > Sync. It is important to note that only the admin that connected to Xero will be able to view and Sync the Xero connection in Expensify. Other admins will just be able to see that that policy has been connected to Xero.