Cloud accounting solutions have been recognized as a vital technology for businesses to adopt. Not only do they improve on nearly all aspects of manual accounting systems, but their ability to integrate third-party solutions accentuates their flexibility, and suitability for small businesses. Unfortunately for many, the amount of choices available can be overwhelming, especially when deciding which apps are best suited to handling core internal tasks such as employee expense management. In this article, we look to compare Xero Expenses and Expensify, two of the best expense management systems for cloud accounting purposes, to help you decide which system is most suited for you.
Content Outline
Key Summary
Tailored Expense Tools for Different Business Sizes
Xero Expenses is ideal for freelancers and small businesses using Xero, while Expensify suits growing teams with more complex workflows.
Expensify Offers Greater Integration Flexibility
Expensify integrates with multiple accounting systems including Xero, QuickBooks, and ADP—Xero Expenses only works within the Xero ecosystem.
Feature Comparison Shows Expensify Has More Depth
Expensify supports advanced features like chat-based approvals, corporate card automation, and real-time syncing, while Xero Expenses focuses on simplicity and direct Xero integration.
Expensify + Xero Integration Enables Best-of-Both-Worlds
Combining both platforms offers seamless automation, accurate coding, and fast reimbursements—ideal for scaling businesses.
Xero Offers Better Support; Expensify Excels in Automation
Xero provides 24/7 support and onboarding guides, while Expensify focuses on automated workflows and global scalability.
Overview of Xero Expenses and Expensify
Xero Expenses and Expensify are leading expense management tools designed to automate and simplify how businesses handle employee expense claims. Both platforms aim to eliminate manual processes by offering features like automated receipt capture, streamlined approval workflows, and seamless accounting integrations. However, each tool is tailored to different business needs and user profiles.
What Is Xero Expenses?
Xero Expenses is part of the broader Xero accounting software ecosystem. It is best suited for freelancers, startups, and small to mid-sized businesses that are already using Xero. With Xero Expenses, users can easily snap receipts, track mileage, submit claims, and approve reimbursements—all from a mobile device. It integrates directly with Xero’s ledger, ensuring real-time cash flow visibility and financial accuracy.
What Is Expensify?
Expensify is a standalone, scalable expense management solution ideal for growing startups, distributed teams, and large enterprises. It offers robust features like SmartScan for receipt capture, chat-based approval workflows, global reimbursements, and the Expensify Visa® Commercial Card. Expensify also integrates with various accounting systems, including Xero, making it a versatile choice for companies managing complex or high-volume expense workflows.
What Are The Features of Both Platforms?
This is a head-to-head feature comparison of Xero Expenses and Expensify based on key functionality areas:
| Feature | Xero Expenses | Expensify |
| Expense Capture & SmartScan | OCR receipt scanning via Xero Me app. Data is extracted and logged into Xero automatically. | SmartScan extracts details from receipts using OCR. Supports real-time expense submission. |
| Corporate Card Integration | Manual tracking and matching of business card transactions. | Offers Expensify Visa® Commercial Card with automated tracking and cash-back rewards. |
| Reimbursements & Approvals | In-app approval workflows with real-time notifications. Syncs with Xero ledger for fast payouts. | Fast reimbursements, multi-level approvals, and chat-based expense discussion. |
| Mobile App & Usability | Simple, intuitive mobile interface with expense capture, mileage tracking, and claim approvals. | Feature-rich app with built-in chat, travel bookings, receipt capture, and real-time syncing. |
| Invoicing & Payments | Create and manage invoices via Xero’s broader platform. Payments handled through Xero’s tools. | Invoice chat for sending, discussing, and paying invoices all within the Expensify platform. |
Supported Integrations
When choosing an expense management tool, integration capabilities play a key role in ensuring seamless data flow across platforms.
Xero Expenses is built exclusively within the Xero ecosystem. It offers deep integration only with Xero’s accounting software. This integration ensures accurate financial reporting, streamlined cash flow tracking, and real-time updates across your ledger. For businesses using other accounting platforms or HR/payroll tools, this lack of flexibility may be limiting.
As an independent solution, Expensify supports a broad range of third-party integrations for growing companies with diverse tech stacks. Expensify integrates with
Xero, QuickBooks, ADP and various kinds of third-party tools.
Customer Support and Resources
Reliable customer support and accessible resources are crucial for businesses managing expense processes without in-house accounting teams.
Xero Expenses users benefit from Xero’s renowned 24/7 online support, which includes:
- A robust knowledge base with searchable help articles
- On-demand tutorials and step-by-step onboarding guides
- Direct access to support agents via web tickets
- A large and active Xero Community Forum
This comprehensive support system makes Xero an ideal choice for small businesses that may need extra guidance when setting up or troubleshooting their expense workflows.
In contrast, Expensify offers a Concierge support system, which allows users to connect via email or chat with product specialists. While helpful, it lacks guaranteed response times and does not match the breadth of self-service resources that Xero provides. Expensify also has a community message board, but it relies more on peer support than company-curated content.
For users who prioritize consistent, high-quality support and onboarding help, Xero Expenses offers a stronger support experience.
Security and Compliance
Data security is non-negotiable when managing sensitive financial and employee information.
Expensify meets high industry standards with certifications including:
- SOC 1 & SOC 2
- PCI DSS compliance for secure handling of card data
These certifications demonstrate Expensify’s commitment to secure data storage, transmission, and processing especially important for enterprises and finance teams handling large volumes of data.
Xero, on the other hand, adheres to strict data protection protocols aligned with international standards. This includes data encryption, multi-factor authentication (MFA), and secure data centers that ensure uptime and reliability. While it does not advertise the same range of third-party security certifications as Expensify, Xero’s reputation as a trusted cloud accounting provider reinforces its reliability.
Both platforms ensure safe data handling, but if compliance certifications are a top priority especially for regulated industries.
Pricing Comparison: Xero Expenses vs Expensify
When it comes to choosing the right expense management software, pricing plays a major role especially for small businesses looking to control costs while accessing essential features.
Xero Expenses is best suited for businesses already using Xero’s accounting platform and looking for seamless internal integration without the need for additional software tools. Xero Expenses is an optional paid add-on to your main Xero accounting subscription. Pricing starts at:
- USD $4/month for one active user
- Additional USD $4/month per extra active user
Xero Expenses is best suited for businesses already using Xero’s accounting platform and looking for seamless internal integration without the need for additional software tools.
See Xero Pricing
Expensify offers flexible pricing for individuals, small teams, and enterprises, with or without integration into accounting platforms like Xero or QuickBooks.
Hidden or Additional Costs to Consider
- Xero Expenses: Requires an active Xero accounting subscription.
- Expensify: Base functionality is free, but business-level tools require paid plans.
- Both may incur costs based on user volume, approval layers, or integration complexity.
| Category | Xero Expenses | Expensify |
| Best for | Xero users & small businesses | Teams that need flexible integrations |
| Base cost (1 user) | $4 + Xero plan | $5 (Collect) or free (basic) |
| Ease of use | Seamless for Xero users | Wider feature set |
| Integration flexibility | Xero only | Xero + many others |
Pros and Cons Comparison
Here’s a quick visual comparison of Xero Expenses vs Expensify to help you choose the right fit for your business:
| Feature | Xero Expenses | Expensify | Best Use Case |
| Xero Integration | ✔ | ✔ | Businesses already using Xero |
| QuickBooks Integration | ✖ | ✔ | Businesses using QuickBooks |
| Other Accounting/ERP Integrations | ✖ | ✔ | Companies with diverse tech stacks |
| Receipt Scanning | ✔ | ✔ | Both platforms |
| Custom Approval Workflows | ✖ (Basic only) | ✔ | Enterprises with layered approvals |
| Corporate Card Support | ✖ | ✔ | Companies issuing employee cards |
| Real-Time Chat | ✖ | ✔ | Remote teams needing quick communication |
| 24/7 Support | ✔ | ✖ | Businesses needing round-the-clock help |
| Knowledge Base & Onboarding Guides | ✔ | ✖ (Limited) | Small teams without internal IT |
| SOC 1 & 2 / PCI DSS Security | ✖ | ✔ | Regulated industries with compliance needs |
| Expense Management for Teams | ✔ | ✔ | Both platforms |
| Starting Price | $4/user/month | $5/user/month | Cost-sensitive vs. feature-flexible buyers |
How Does Expensify Xero Integration Work?
The Expensify integration with Xero is a seamless, two-way sync designed to simplify expense management, eliminate manual data entry, and keep your finances accurate and up to date in real time.
How to Sync Expensify with Xero
Setting up the Expensify and Xero integration is straightforward. Once connected, Expensify automatically pulls data from your Xero account, including:
- Chart of accounts
- Tax rates
- Tracking categories
- Customer contacts
When expense reports are submitted and approved in Expensify, they are automatically pushed back into Xero with no extra clicks or uploads required. This ensures that all expense data is coded accurately and synced in real time.
Two-Way Sync Functionality
Here’s what you can expect from the two-way sync between Expensify and Xero:
| Functionality | How It Works |
| Chart of Accounts | Expensify pulls your general ledger (GL) accounts from Xero for accurate coding |
| Tax Rates | Syncs Xero’s default and custom tax rates to ensure compliance |
| Tracking Categories | Imports categories (e.g., departments, regions) to tag and track expenses |
| Customer Contacts | Makes it easy to assign and recharge billable expenses to clients |
| Auto-Sync Reports | Approved reports are automatically exported back into Xero |
Real-Time Data Sync Benefits
With real-time syncing, Expensify and Xero offer a number of workflow and productivity benefits:
- Accurate Expense Coding: Ensures expenses are categorized correctly using Xero’s GL structure.
- Faster Reimbursements: Approved reports can trigger next-business-day employee reimbursements.
- Eliminates Manual Entry: Say goodbye to spreadsheets and copy-pasting between tools.
- Always Up-to-Date: Get instant visibility into your financial data and corporate spending.
Step-by-Step Guide to Set Up Expensify Xero Integration
Setting up the Expensify Xero integration is quick and straightforward. Whether you’re new to expense automation or migrating from manual processes, this step-by-step guide will help you connect your accounts seamlessly and ensure a smooth transition.
Before you begin, make sure the following requirements are met:
- You’re logged into Xero as an administrator
- Your Expensify Workspace is on a Collect or Control plan
- Two-factor authentication (2FA) is enabled in Expensify
Then, follow these steps to sync Expensify with Xero:
- Log in to Expensify
- From the left-hand menu, go to Settings
- Select Workspaces, then choose your Workspace
- In the Workspace menu, click More Features
- Under the Integrate section, toggle on Accounting
- Click on Accounting in the menu
- Click Set up next to Xero
- Log into your Xero account when prompted
- Approve access to complete the integration
Once connected, Expensify will automatically import your Xero chart of accounts, tax rates, tracking categories, and customer contacts.
Read the official Expensify setup guide
Tips for First-Time Users
If you’re connecting Expensify and Xero for the first time, keep these tips in mind:
- Review your chart of accounts in Xero beforehand to ensure clean, organized syncing.
- Enable categories and tracking in Xero for better expense segmentation.
- Assign a finance team member as the Workspace owner for smoother approval workflows.
- Use tags and tracking categories in Expensify that match Xero structures to simplify reporting.
- Test the integration with a sample report before going live across your team.
Disconnecting Xero from Expensify
If you ever need to disconnect the integration:
- Go to Settings > Workspaces
- Select your Workspace
- Click Accounting
- Click the three-dot menu next to Xero
- Select Disconnect, then confirm
Conclusion: Which Tool Is Right for You?
Choosing between Xero Expenses and Expensify depends on your business size, workflow complexity, and the features you need most.
For Solo User and Small Business
If you’re a freelancer or solo entrepreneur using Xero already, Xero Expenses is likely the simpler, more affordable choice. It’s deeply integrated within the Xero ecosystem and offers the essential features for basic expense tracking.
For Growing Teams or Complex Expense Policies
For small to medium-sized businesses with multiple team members, corporate cards, approval flows, or ERP integration needs, Expensify stands out. Its advanced automation, real-time syncing, and support for custom workflows make it ideal for scaling finance teams.
Best of Both Worlds: Use Expensify + Xero Together
When you integrate Expensify with Xero, you unlock the best of both tools which is powerful expense automation combined with Xero’s intuitive accounting platform. This synergy helps businesses manage reimbursements, track budgets, and stay audit-ready with minimal effort.
How FastLane Can Help You
Need help choosing the right setup or integrating Expensify with your Xero account?
Our team of experts at FastLane can help you in cloud accounting solutions and Xero implementation. From set up, integration to continuous support, let our experts streamline your expense management process so you can focus on growing your business. Contact us today for a consultation!
Frequently Asked Questions (FAQ)
1. Can you use Expensify without Xero?
Yes. Expensify is a standalone expense management tool that works independently. However, integrating it with Xero adds significant value by automating your accounting and eliminating manual data entry.
2. How do I import expenses from Expensify to Xero?
When you connect Expensify to Xero:
- Expenses are automatically coded based on your Xero chart of accounts.
- Approved reports are pushed directly into Xero as expense claims or bills.
- Corporate card transactions can also be auto-matched and synced.
3. Is Expensify better than Xero Expenses?
It depends on your needs. Xero Expenses is best for simple, in-house tracking with tight Xero integration. Expensify offers corporate card management, and approval automation which is especially useful for larger teams.
4. What happens if I use both tools together?
You get the best of both:
- Real-time data sync between platforms
- Accurate expense categorization
- Faster reimbursements
- Seamless reconciliation in Xero
This combined approach is highly recommended for businesses looking to scale their finance operations efficiently.
