Automating Expense Tracking in Xero for Malaysian SMEs

Ready to revamp the way you are tracking your expenses and managing expenses wherever? As a small to medium enterprise in Malaysia, you probably know how complicated managing expenses can get. The good news is that Xero embodies the solution to this. You can use Xero Expense, an expense management software to automate and improve the tracking of your expenses like never before.

Say goodbye to the drudgery of manual entries, embrace improved efficiency and real-time visibility instead! This means you can now focus on what truly matters—business expansion. Let’s see how Xero can change the face of your bills and expense management today!

What are the pain points of traditional claim expense submission?

The traditional expense claim submission process has several issues confronting Malaysian SMEs. The principal pain points are:

1. Poor Visibility

Firms lack proper visibility into their spending. Standard practice is to wait until the end of a month or quarter to see the complete picture. It is difficult to make timely decisions and maximize spending because of the lag.

2. Human Mistakes

Manual data entry is prone to errors. Missing receipts, incorrect categorization, and data entry mistakes are popular issues. These are time-consuming to rectify and cost the business unnecessary money.

3. Thinking Outside the Box Onboarding Workflows

Most Xero users know the problems associated with the approval process: it takes a long time and is frustrating. The approval itself is complex so there is a never-ending list of obstacles that makes reimbursement processes a major bottleneck, to the point that many frustrated employees feel they will never get paid on time.

4. Risk of Fraud and Poor Budget Control

Legacy systems increase the risk of cost fraud and disrupt budget control. Without checks, employees can submit duplicate invoices or alter receipts. The risk is greater when companies lack real-time insight into costs, making budget management harder. Overall, legacy systems cause financial loss and bad budgeting.

These issues can be solved by automating the reporting of Xero expenses with regard to Integrated Expense Reporting. Xero gets rid of manual data entry, improves approval workflows, and offers visibility over the company expenditure online in real time. This also ensures accuracy and time efficiency. In addition, it automates compliance with the expense filing and approval system for SMEs in Malaysia.

How does automated expense management work?

Automated expense trackers use technologies like artificial intelligence (AI) and machine learning integrated with user-friendly designs to work effectively. Let’s explore how automated expense management works:

1. Receipt Scanning

Most of the platforms allow users to capture receipts and expenses using their mobile devices’ cameras. The receipt scanner captures the receipt images, which are then converted to machine-readable format via Optical Character Recognition (OCR) wherein critical details such as the vendor name, transaction date, total amount, and merchant category are extracted.

2. AI-Powered Categorization

Machine learning software is used to categorize expenses automatically. The software analyzes merchant names, transaction descriptions, and spending patterns. This is performed to categorize business expenses in an effective way.

3. Rule-Based Matching and Customizable Categories

Users can set custom categories such as “Food” and “Take Out” to have better expense management. The app will automatically set rules to match transactions using keywords or merchant names. This keeps expense tracking up to date and well-organized.

4. Data Connection

Individuals link their credit cards, bank accounts, and other related financial expense accounts with the expense management system. The connection allows the system to directly import transaction details. Hence, the users can get real-time insight into expenses.

5. Data Visualization

The site lays out spending details in simple readable formats, such as charts and graphs. The users can visually view trends from these formats as well as the areas where they can cut expenses.

What are the benefits of digitized submission of claim expenses?

Digitized submission of track and manage expense claims is highly beneficial for small businesses. The benefits offer enhanced financial management and better efficiency. The following are six of the primary benefits:

1. Automation and Efficiency

Digitized expense management automates the recording and categorization of expenses. This is a time-saving step that minimizes human error, making the submission process more efficient.

2. Accurate Financial Tracking

Digital solutions give you a clear view of your financial standing. Tracking and managing expenses is simple, which helps in making fully informed budgetary choices.

3. Real-time Access

Online expense tracking programs that are cloud-hosted offer real-time access to financial data stored online from any location and at any time. This helps keep you ahead by having the data you need when you need it.

4. Budget Management

Most spend management solutions incorporate budgeting features. You can set spending limits on different categories and receive alerts when you hit or exceed them.

5. Faster Reimbursements

Computerized systems enable quick reimbursement of employees who incur expenses. This keeps employees delighted and your workforce content.

6. Better Financial Forecasting

Electronic tracking makes it easier to calculate profitability. You get a clear picture of revenue versus expenditure, allowing accurate views of financial forecasts to be made more accurately for stakeholders.

As a conclusion, digitized submission of claim expenditures can lead to greater efficiency, accuracy, and overall financial control for Malaysian SMEs, especially Xero online accounting software.

Check on the blog -> 7 Powerful Financial Reporting Available in Xero

7 Steps to Submit Claim Expenses in Xero

It is convenient to enter claim expenses on Xero. Follow these steps to prepare and lodge your expense claim:

Step 1: Go to the Business Menu

From the Business menu, select “Expense claims.”

Step 2: Begin a New Claim

Select “New expense,” and then select “Expense claim.”

Step 3: Upload Receipts (Optional)

To monitor expenses, press the “upload” button and take a picture of your receipt. Drag any screenshots or photos of the receipt directly into the box.

Step 4: Enter Purchase Details

Under “Purchase amount,” choose the currency of the purchase and enter the amount paid, including tax. If you select another currency, the exchange rate will be shown at the bottom.

Step 5: Fill in the Required Fields

Put all the details that are required in the required fields.

Step 6: Add Optional Details (Optional)

You can add tracking categories, apply the expense to a project or customer, or categorize the expense under the optional section.

Step 7: Save or Submit the Claim

Choose one of the following:

• • Click “Save draft” to finish and submit the expenses later.
  • Click “Submit” to submit the claim for expense to your approver for review and approval.
  • If you are the approver, click “Approve” to approve the claim.

Xero Mobile App

Single business owners and freelancers can stay on top of their finances through the Xero Mobile App. Work is made easier with the ability to manage invoicing, expenses, and help manage cash flow via a mobile device.

The app’s key features are easy monitoring and management of cash flow, effortless bank reconciliation, and customizable financial reports. It is also favorable for international business transactions as it supports different currencies.

Xero accounting software for small businesses is dedicated when it comes to the customer’s security, always making sure that your financial data is safe and protected while still allowing convenient access to your business information.

Subscribers of the Xero plan benefit as well; all of them have access to the mobile app of Xero for FREE. This bundling option is especially favorable for Malaysian SMEs that are keen on improving their business accounting systems.

Check on the blog-> 7 Powerful Xero’s Mobile App features for On-the-Go Accounting

Subscribe Xero Expenses

Subscription Fee

The cost of a subscription to Xero, a cloud accounting software is between RM130 to RM330 (Excluding discounts), depending on the plan you choose. Therefore, you may have a look at each plan’s different features here. The claim expense feature starts from RM17 per month with one user. For additional users, the cost is around RM17 per user per month. 

Before you decide on the plan, start a free trial first. Explore the next Xero from now!

What do you need to implement Xero Expense?

To get started with Xero Expense for Malaysian SMEs, remember the following requirements:

• Xero Subscription: Begin with a Xero Standard or Premium subscription. This is the necessary subscription for utilizing features of Xero Expense.
• Connect Business Bank Accounts: Integrate your business bank accounts with Xero. This allows you to monitor and control employee expenses effectively.
• Getting Started: Begin by going to expenses.xero.com/get-started (Required log in to Xero account). This website offers the step-by-step procedure to install Xero Expense.
• User Roles Management: Once installation is complete, invite your employees and allocate user roles (Submitter / Approver / Admin).

By meeting these criteria, Malaysian SMEs are able to automate the expense management process of tracking expenses and handle expenses more efficiently. It is a more streamlined process when it comes to employee spend management, ensuring quality and suitability in their financial practices.

FAQs (Frequently Asked Questions)

About Xero

Xero is a global small business platform with 4.2 million subscribers. Xero’s smart tools help small businesses and their advisors to control core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments. Xero’s extensive ecosystem of connected apps and connections to banks and other financial institutions provide a range of solutions from within Xero’s open platform to help small businesses run their business and control their finances more efficiently.