Improving petty cash claims and expense claims processes

Few bookkeepers or accountants will suggest changes to their client’s internal processes, but our role has been evolving and the current advances in cloud accounting software is enabling us, as Xero bookkeepers or accountants to play a more active role in helping our clients streamline their internal processes.

Usual process of expense claims

The staff is asked to keep all of their receipts and fill in a claim form once a month. Sometimes the receipts are lost or misplaced before it can be submitted. Unfortunately, once that happens, its not possible for reimbursement to take place as a business has to keep all its supporting documents in case of a tax audit. Its a tedious process as each receipt has to be detailed in the claim form. As the receipts paper will often fade away within a couple of months due to use of thermal printing. Receipts are often pasted on a single sheet and photocopied so that the receipts can still be referenced back in the future in situations of audit. The claim form has to then be passed to the approver to approve the claims. The staff has to manually add up all the receipts amount with taxes and the voluminous of it coupled with high workload often results in calculation errors. The approver has to be physically available at the location as well to sign off on the expense claims forms.

How cloud accounting improves the expense claims process

The use of a cloud accounting platform that has an expense claims modules improves significantly on the usual claims processes. A Xero bookkeeper will be able to assist the client in implementing the new expenses claims process. Each staff that needs to submit claims will be provided a unique login, when the staff incurs claims, instead of keeping the physical receipts, the staff can just take a photo of the receipt. The Xero system will then prompt the approver that he has pending claims for review and at his own preferred time and location, the approver can review and approve the claims. This reduces the risks of loss of receipts and improves the turn-around time of approving the claims. The staff also saves on the time required to fill in claims forms.

Recharging expenses to customers

Using the expenses claims module of the cloud accounting software, the staff is also able to specify which customer their expense claims are related to and reduce the risk that recharging of expenses is not done to the end customer.


There’s a myriad of advantages in using a cloud accounting software so start on the process of improving the business processes by engaging us as your Xero accountant or Xero bookkeeper today. Drop us a note. We will love to get to know more about you.

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