1. Enter the Expense Claim
- Add the expense amount (£25 for Google Ads).
- Upload a receipt (optional).
- Choose how the expense was paid:
- Personal money → Select Reimbursement.
- Company paid for the client → Use Business Account.
2. Select Supplier & Category
- Choose an existing supplier or create a new one.
- Select Expense Category (e.g., Advertising & Marketing).
- Adjust VAT settings:
- Exclude VAT (VAT is added separately).
- Include VAT (VAT is part of the total).
- No VAT (if not applicable).
3. Assign to a Customer
- Choose the Customer Name.
- (Optional) Apply Labels for tracking.
4. Submit & Approve the Claim
- Click Submit for approval.
- Once approved, it will appear under All Expense Claims.
5. Invoice the Customer
- Go to Invoices and create a new one.
- Xero will prompt you to add the billable expense.
- Click Add Item, select the expense, and save the invoice.
I hope you found this tutorial helpful! You can watch a video tutorial below.
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