Xero vs Expensify: Which Accounting Software Wins in 2025?

Are you tired of messy receipts and struggling to keep track of your business spending?

It can feel like a real headache, right?

Choosing the right software to help can be tough.

Two big names you might have heard of are Xero vs Expensify.

Both promise to make managing your money easier, but which one is actually better for you? 

Overview

We’ve tested both Xero and Expensify, exploring their features and how they handle everyday business tasks.

This hands-on testing allows us to bring you a clear comparison of their strengths and weaknesses.

Ready to simplify your finances?

What is Xero?

So, what’s the deal with Xero?

It’s basically online accounting software.

Think of it as a way to manage all your business money stuff in one place. Pretty handy.

Also, explore our favorite Xero alternatives…

Key Benefits

• Automatically imports daily bank transactions.
• Send professional invoices and get paid faster.
• Run over 50 types of financial reports.
• Connect with over 1000 other business apps.

Pricing

• Starter: $2.90
• Standard: $4.60
• Premium: $6.90

What is Expensify?

Okay, so what about Expensify?

This tool is really focused on expenses. Think snapping photos of receipts and making expense reports super simple.

It’s all about saving you time and headaches with those pesky costs.

Also, explore our favorite Expensify alternatives…

Key Benefits

• SmartScan accurately captures 95% of receipts.
• Automate corporate card reconciliation, saving 10+ hours monthly.
• Streamline approval workflows for faster reimbursements.
• Integrate with over 7,000 accounting software options.

Pricing

• Free: $0
• Collect: $5
• Control: $9

Feature Comparison

Let’s compare Xero and Expensify.

We’ll compare key features to help you decide which software is a better fit for your business needs.

Especially for small businesses.

1. Core Accounting vs Expense Management

This is where Xero and Expensify have their biggest difference.

• Xero: is full-blown accounting software that handles everything from invoicing to bank reconciliation. It’s designed to give you a complete view of your business’s financial health, and many accountant professionals recommend it.
• Expensify: This expense management software focuses on tracking and reporting expenses, especially with features like receipt scanning and automated reports. While it integrates with accounting software like Xero, it’s not a replacement.

2. Receipt Scanning and Data Entry

How each handles data entry, especially from receipts, is crucial.

• Expensify: Excels here. Its SmartScan feature automatically extracts data from receipts with high accuracy. This significantly reduces manual data entry.
• Xero: Offers receipt capture, but it’s not as advanced as Expensify. You can upload receipts, but the automatic data extraction might require more manual checking.

3. Invoicing and Billing

Both handle invoicing but with different scopes.

• Xero: Provides robust invoicing features as part of its accounting functionality. You can create custom invoices, set up recurring invoices, and track payments.
• Expensify: While it can create invoices, it’s primarily for billing clients for expenses. It’s not designed for comprehensive sales invoicing like Xero.

4. Reporting and Dashboard

A clear financial overview is essential.

• Xero: Offers a huge range of financial reports, including profit & loss statements, balance sheets, and cash flow statements. The interface gives a good overview of key financial metrics.
• Expensify: This service provides reports related to expenses, such as expense summaries and spending trends. Its dashboard focuses on expense tracking and approvals.

5. Integration with Other Software

How well do they play with others?

• Xero: Integrates with many third-party apps, including payroll systems, e-commerce platforms, and, importantly, Expensify. This allows for a more connected workflow.
• Expensify Integrates with accounting software like Xero and QuickBooks, which is crucial for syncing expense data. It also connects with travel and HR systems. The Expensify and Xero connection is popular.

6. Expense Approval and Reimbursement

This is key for companies with employees.

• Expensify: Streamlines the approval process for expense reports. It allows for customizable approval workflows and automates reimbursement to employees.
• Xero: Handles expense claims, but its approval process is not as detailed or automated as Expensify’s.

7. Scalability

Can they grow with your business?

• Xero is designed to scale with your business. It offers different plans with increasing features to accommodate growth, making it suitable for both startups and larger enterprises.
• Expensify: It scales well for expense management, but its core focus remains limited to that. As your accounting needs grow, you’ll likely need separate accounting software, even with Expensify vs. Xero integrations.

What to Look For When Choosing Accounting Software?

Here are some quick things to consider:

• Ease of Use: Is it straightforward for you and your team?
• Specific Needs: Does it handle your industry’s unique requirements?
• Scalability: Could it grow as your business expands?
• Budget: Does the pricing fit your current financial situation?
• Customer Support: Is help readily available if you run into issues?
• Integrations: Does it connect with other tools you already use?
• Security: How secure is your financial data with this software?

Final Verdict 

Okay, so which one?

If you need all-around accounting with invoices and bank help, Xero wins.

But if messy expenses are your problem.

Expensify is super handy for scanning receipts and reports.

We’ve tried both, so trust us on this.

We’ve spent time testing these, and we hope our experience helps you choose what’s best for your business.

More of Xero

• Xero vs Puzzle IO: Puzzle IO excels in project accounting, offering detailed job costing.
• Xero vs Dext: Dext specializes in automated data capture from receipts and invoices.
• Xero vs Synder: Synder focuses on e-commerce integrations syncing sales data.
• Xero vs Easy Month End: Easy Month End simplifies the month-end closing process.
• Xero vs Docyt: Docyt automates financial data collection and categorization.
• Xero vs RefreshMe: RefreshMe provides automated bank reconciliation.
• Xero vs Sage: Sage offers robust enterprise-level accounting solutions.
• Xero vs Zoho Books: Zoho Books provides a user-friendly interface with strong CRM integration.
• Xero vs Wave: Wave is known for its free accounting and invoicing for very small businesses.
• Xero vs Quicken: Quicken focuses on personal finance and basic business accounting.
• Xero vs Hubdoc: Hubdoc automates document collection and data entry.
• Xero vs QuickBooks: QuickBooks is popular for its user-friendly interface and extensive features.
• Xero vs AutoEntry: AutoEntry automates data entry from invoices, receipts, and bank statements.
• Xero vs FreshBooks: FreshBooks is tailored for service-based businesses with strong invoicing.
• Xero vs NetSuite: NetSuite offers comprehensive ERP solutions for larger enterprises.

More of Expensify

• Expensify vs Puzzle IO: Puzzle IO offers project expense tracking with detailed cost analysis.
• Expensify vs Dext: Dext specializes in automated receipt and invoice data extraction.
• Expensify vs Synder: Synder automates expense tracking for e-commerce transactions.
• Expensify vs Easy Month End: Easy Month End does not directly compete; it focuses on month-end closing.
• Expensify vs Docyt: Docyt automates the collection and organization of financial documents.
• Expensify vs RefreshMe: RefreshMe does not directly compete; it focuses on bank reconciliation.
• Expensify vs Sage: Sage offers comprehensive accounting with expense management features.
• Expensify vs Zoho Books: Zoho Books provides accounting with integrated expense tracking.
• Expensify vs Wave: Wave offers free accounting with basic expense tracking for small businesses.
• Expensify vs Quicken: Quicken focuses on personal finance with some basic expense tracking.
• Expensify vs Hubdoc: Hubdoc automates document collection, aiding expense tracking.
• Expensify vs QuickBooks: QuickBooks offers accounting with expense management capabilities.
• Expensify vs AutoEntry: AutoEntry automates data entry from expense-related documents.
• Expensify vs FreshBooks: FreshBooks focuses on invoicing and expense tracking for service-based businesses.
• Expensify vs NetSuite: NetSuite provides enterprise-level ERP with comprehensive expense management.

Frequently Asked Questions