Don’t buy apps for managing bills until you max the free ones - default to Hubdoc

If you’re on Xero, you already have two free intake options for accounts payable. Both reduce admin. One automates more.

• Option 1: Email → Xero Bills (always creates a Draft bill)

• Option 2: Hubdoc (smarter extraction, supplier rules, status control, and autosync)

Below is a practical guide you can hand to your team: setup steps, and when to use which.

Key takeways

• Light volume / simple PDFs? Use Email → Xero Bills.

• Anything beyond that? Use Hubdoc for better data capture, rules, autosync, and the ability to drop bills into Draft / Awaiting Approval / Awaiting Payment.

Option 1 — Email → Xero Bills (Drafts)

What it does
Every Xero org has a unique “Email to Bills” address. When a supplier emails a PDF attachment to that address (or you forward it), Xero creates a Draft bill with the PDF attached.

How to set it up (2 minutes)

1. In Xero: Business → Bills to pay → Automate bill entry → Copy your unique bills email.

2. Share that address with suppliers (or forward invoices there yourself).

3. Review the draft → code → approve → pay.

Strengths

• Easiest possible intake for clean, consistent supplier PDFs.

• Zero extra app to learn.

Limitations

• Always lands as Draft (no status choice).

• Basic data capture; you’ll still tidy coding, tax, tracking, and approvals.

Best for

• Low bill volume.

• A handful of predictable suppliers (utilities, insurance, software).

Option 2 — Hubdoc (goes one better)

What it does
Hubdoc ingests documents via mobile photo, drag & drop, or by forwarding to your Hubdoc email. It extracts the details, applies your supplier rules, and publishes to Xero with the source document attached.

Key advantages

• Smarter data capture: better at pulling the right specifics (supplier, dates, amounts).

• Supplier rules: set default account codes, tax rates, tracking categories.

• Status control: choose how bills arrive in Xero — Draft, Awaiting Approval, or Awaiting Payment (per document or as a supplier default).

• Autosync: for recurring bills, publish automatically using your chosen status.

• Mobile-first: perfect for photographed/handwritten invoices and teams on the move.

• Clean audit trail: the source doc stays linked to the transaction.

Best for

• Anything photographed or messy.

• Teams who want rules + status control + autosync doing the heavy lifting.

• Medium-to-high bill volume.

Quick Decision Guide

• Your suppliers already send neat PDFs? Try Email → Bills first.

• You want bills to land pre-coded and ready for approval? Use Hubdoc with supplier rules.

• You need bills to skip straight to approvers or payment queue? Use Hubdoc status options.

• You have recurring bills you never want to touch? Hubdoc autosync.

10-Minute Setup

A) Email → Xero Bills

1. Copy your unique bills email and add it to your contacts as “Xero Bills”.

2. Send this to suppliers:

sql

CopyEdit

Subject: New invoice email address Hi [Supplier], Please email future invoices as PDF attachments to: [your-unique-bills-email@xero.com] This routes them straight into our accounts system and speeds up approvals. Thanks, [Your Name]

1. Internally: forward any stray supplier invoices to Xero Bills (not to your bookkeeper’s inbox).

B) Hubdoc

1. Turn on Hubdoc and connect it to your Xero org.

2. For each frequent supplier, set:

   • Default account code, tax, tracking (supplier rules)

   • Default publish status: Draft / Awaiting Approval / Awaiting Payment

   • Autosync: on for recurring bills; off where you want a review step

3. Train the team to capture via:

   • Mobile app (snap paper/handwritten invoices)

   • Drag & drop PDFs

   • Forward to your Hubdoc email

4. Test with two suppliers (one simple, one messy). Confirm coding and statuses are right.

Common Gotchas (and Fixes)

• Bills embedded in the email body aren’t processed → Ask suppliers to send PDF attachments.

• Duplicate documents → In Hubdoc, use autosync + consistent supplier naming to keep one source-of-truth.

• Random receipt photos in chat apps → Re-train: “If it’s not in Email→Bills or Hubdoc, it doesn’t exist.”

• Rules drift (wrong coding over time) → Review top 10 suppliers’ rules quarterly.

FAQs

Is Hubdoc included with Xero?
Hubdoc is included with Xero for most business subscriptions. (Exact inclusions can vary by region/plan; check your Xero subscription page.)

Can I mix both methods?
Yes—many teams use Email→Bills for “easy” suppliers and Hubdoc for everything else.
For simplicity though it’s best to pick one method.

Will Hubdoc post straight to payment?
You can choose Draft, Awaiting Approval, or Awaiting Payment per document or per supplier.

Bottom Line

• Keep it super simple and low-touch? Use Xero’s Email → Bills.

• Want automation, rules, statuses, and autosync? Default to Hubdoc.