Expensify is a receipt and expense management software and was designed to replace hard to use expense reports that were commonplace during its inception.
With various functionalities such as ‘one-click’ receipt scanning, company card reconciliation, automatic approval workflows and automatic accounting syncs, keeping track of expenses is easier than ever.
For more information on Expensify if this is your first time hearing of it or if you need to refresh your knowledge of the software, please visit the Expensify website at https://use.expensify.com/
Now, if you are reading this document, we’ll assume that you already have an Expensify account and are looking to sync it with your Xero Accounting software.
How to integrate Expensify with Xero
Log into your Expensify account.
Make sure your pricing plan is a ‘Collect’ or ‘Control’ Pricing plan.
Once selected, you will then be able to enter the Settings/Policies tab and then select your company name under the group Section.
This will open more settings on the left from which you will need to choose the connections option. From here, you will need to select the app you wish to integrate with from the list. In this case, Xero.
Clicking the ‘Create a New Xero Connection’ link will open the Xero Login Page where you will need to log in. Once logged in, Expensify will automatically connect to Xero and will then open the sync options.
Clicking save, will finish off the connection process.
You now need to check if the connection is showing in Xero. Log back into your account and go to the settings menu, under which you can find the ‘Connected Apps’ option. Clicking this will open a page showing all of the apps connected to Xero. You can also disconnect the app from here if you wish. Congratulations, you have now integrated Expensify into Xero.
How Xero is affected by the integration and the double entries involved
Expensify lists the changes it will make in Xero as the following adjustments.
1. Export Reimbursable expense as – Purchase Bill
This will create a purchase bill in Xero that is awaiting payment. The double entry is;
- DR Expense
- DR VAT
- CR Liability Account
2. Export non-reimbursable expense as – Bank Transactions
- DR Expense
- DR VAT
- CR Bank Account
When you have the outgoing money transaction to reconcile, you can just match it against this transaction in Xero’s ‘Accounts Transactions’ tab.
If you need help in setting up your Xero with Expensify, or looking for a Specialist Xero Accountant, then give us a call to speak to one of our advisors on 0208 577 0200.