Configure Xero

Best Practices Using Xero

A connection to Xero lets you combine Expensify’s expense management features with Xero’s accounting capabilities. Follow these best practices to ensure your finances are correctly categorized and accounted for:

• Configure your setup immediately after connecting and review each settings tab thoroughly.
• Keep Auto Sync enabled to:
  • Update Expensify daily with changes to your chart of accounts, customers/projects, or bank accounts in Xero.
  • Automatically export finalized reports to Xero, saving your admin team time.
• Set the Preferred Exporter to a user who is both a Workspace and Domain Admin.
• Configure coding settings and enforce them by requiring categories and tags on expenses.

Accessing the Xero Configuration Settings

Xero is connected at the workspace level, and each workspace has a unique configuration. To access the settings:

1. Click Settings near the bottom of the left-hand menu.
2. Navigate to Workspaces > Groups > [Workspace Name] > Connections.
3. Scroll to the Xero connection and click Configure.

Step 1: Configure Export Settings

Define how data will be exported from Expensify to Xero:

1. Click Configure under the Xero connection.
2. Under the Export tab, review and set up:
   • Preferred Exporter: Assign a Workspace Admin.
     • Concierge exports reports automatically for the preferred exporter.
     • Other Workspace Admins can export manually.
     • If you set different export bank accounts for company cards, the Preferred Exporter must also be a Domain Admin.
   • Export reimbursable expenses and bills as: Always exported as a Purchase Bill.
   • Purchase Bill Date: Choose last expense date, export date, or submitted date.
   • Export invoices as: Always exported as Sales Invoices.
   • Export non-reimbursable expenses as: Posted as bank transactions to a Xero bank account.
   • Xero Bank Account: Select the bank account for posting non-reimbursable expenses.

Step 1B: Configure Company Card Exports (If Applicable)

1. Click Settings.
2. Navigate to Domains > [Domain Name] > Company Cards.
3. If multiple company card connections exist, select the relevant one.
4. Locate the cardholder and click Edit Exports.
5. Assign the correct Xero account for the card expenses.

Step 2: Configure Coding Settings

Define how data is imported from Xero to Expensify:

1. Click Configure under the Xero connection.
2. Under the Coding tab, configure:
   • Chart of Accounts: Imported as expense categories (enabled by default).
   • Tax Rates: Enabled to import Xero tax rates, visible under Tax Settings.
   • Tracking Categories: Choose import method:
     • Xero contact default (applies during export)
     • Tag (line-item level)
     • Report Field (header level)
   • Billable Expenses: Enables importing Xero customer contacts as tags. All billable expenses require a customer tag for export.

Step 3: Configure Advanced Settings

1. Click Configure under the Xero connection.
2. Under the Advanced tab, configure:
   • Auto Sync: Ensures daily synchronization.
     • Reimbursable expenses export after reimbursement.
     • Non-reimbursable expenses export after final approval.
   • Newly Imported Categories Should Be: Controls default visibility of new Xero accounts in Expensify.
   • Set Purchase Bill Status (optional):
     • Awaiting Payment (default)
     • Draft
     • Awaiting Approval
   • Sync Reimbursed Reports: Ensures paid reports and invoices sync across Expensify and Xero.
   • Xero Bill Payment Account: Specifies where reimbursements appear in Xero.
   • Xero Invoice Collections Account: Defines the invoice collection account for exported invoices.