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Financial Reporting with Expensify and Xero

How Expensify can link with Xero

learn xero online training learning videos
Are you deducting everything you could be? Perhaps you need an app to help you.

WE’VE TALKED IN THE past about what a life saver daily reconciliations can be, and why some businesses could benefit from reconciling their account daily, twice weekly, or at least, on a more regular basis than once a month.

The expenses your business incurs form deductions that reduce your taxable income, so making sure you’re recording them accurately — and then storing them securely too — is an important part of your business remaining compliant.

An online software program like Xero will enable you to enter your expenses and transactions; and you can also use an app to automate the process for you, like Expensify.

Expensify for accurate record keeping

The way Expensify works is pretty simple. You connect it to your bank or credit card accounts, and it will import transactions into its app, which you then approve as business expense and it send the data through to your connected accounting software — in this case, Xero.

If all your expenses were electronic, Expensify wouldn’t provide much more value than the bank feeds feature in Xero. But Expensify does more than just that.

It can, with impressive accuracy, import expense data from any hardcopy receipt — even handwritten ones — by taking a picture on your smartphone, sending them to a dedicated email address for upload, or importing them straight from Dropbox or Evernote.

Once a receipt has been uploaded to Expensify, it stores it in the cloud, so you don’t have to keep the physical copy.

Accurate vehicle mileage

The best feature, which anyone who uses their vehicle for business purposes will appreciate, is how it tracks mileage. You have two options: input the distance you travelled by typing it into the app, or using the app’s built-in GPS.

You simply tell Expensify to start tracking your mileage and it will, using its own motion sensors and GPS. This is different (and better) than other apps that work out the distance you travelled using routes in Google Maps after the fact.

Expensify would be better if it automatically detected car motion without having to open the app at the start of your journey, like the QuickBooks Self Employed app does. Of course, that also results in many unnecessary travel trips — taxi, Uber and bus rides, lifts from friends, as well as your own personal trips — showing up in the QuickBooks app.

Create expense reports

Expensify also lets you create expense reports to collate expenses together. This is extremely useful for businesses that want to see expenses associated with their projects, bill their clients for expenses, or for businesses with employees who need to be reimbursed for their expenses.

Rather than manually collating expenses together and matching them to employee trips, work trips, customers or projects, Expensify does it for you, and then imports it straight into Xero as either a bill or invoice.

An expense app like Expensify will help your business reconcile its accounts regularly and more accurately, and will also ensure you’re compliant by storing your receipts securely in the cloud.

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Our Xero training courses will show you how to track expenses in Xero and how to connect third party apps to your Xero account. We provide training in ALL SKILLS LEVELS for ONE LOW COST.


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Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

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How and What Kind of Receipts Do You Need to Keep?

Xero course online receipt keeping

Online Receipt Keeping is the Way to Go

A HUGE PART of reconciling your bank account involves coding business expenses or purchases. You then need to keep a record of those expenses in the event you’re ever audited.

Our Xero Bank Reconciliations and Journal Entries Course covers how to code an expense or purchase in Xero, and it’s important to also store your receipts and get them to your bookkeeper if they’re working remotely.

Many people have used Dropbox to capture images of receipts but there are even better ways. Continue reading How and What Kind of Receipts Do You Need to Keep?

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Video: Receipts in a Shoebox?

Receipts in a shoebox

Receipts in a shoebox? Shoeboxed Australian websiteI WAS LOOKING in my top draw and noticed some receipts, bundled by the month, with a bull clip holding them together. Do you know someone who also stores their receipts in a shoebox?

I have, of course, now entered them into our MYOB accounting software. However, it begs the question: How many business people do you know who still store their receipts and other paperwork with way?

 

The legal requirement to file receipts

Every business owner has the legal requirement to keep their accounting records on file even if your receipts are printed on thermal paper and fade after a couple years.

That’s where Shoeboxed could be a very handy service. It doesn’t matter whether you are a bookkeeper making a recommendation to your client, or whether you’re doing it for your own convenience. A service like Shoeboxed provides you with a cheap form of data entry; they do it all for you and provide the information to you online.

 

Easy and cheap

When you sign up to Shoeboxed, you can send your receipts to them using reply paid envelopes or by taking a photo using their smartphone application.

If you are a bookkeeper you could recommend this service because the cost of data entry is much cheaper than you could do by yourself, plus you could be doing smarter things for the rate you charge.

If you are a small business owner and you store your receipts in a shoebox you should definitely take advantage of their Start Free offer and see just how well it works.

 

The cost?

Their lite plan costs $19.95 per month for up to 50 receipts, that’s 40c to enter a receipt. How many receipts could you enter per hour and how much do you charge per hour. I’m only presenting the information this way because it makes very good economical sense as well as provide you with a system to store and retrieve your receipts.

 

Bookkeepers could use it

If you have completed our MYOB Training Courses you’ll learn all about the Day-to-Day transactions in Course 2 (of our 5 courses you receive for one low price) and realise the benefit of letting your bookkeeping clients know about this service.

Learn more about Shoeboxed by watching their video below: