{"id":5759,"date":"2026-01-29T14:09:47","date_gmt":"2026-01-29T14:09:47","guid":{"rendered":"https:\/\/www.receipt-bot.com\/blog\/xero-feature-deep-dive-introduction-to-xero-for-small-businesses"},"modified":"2026-02-04T14:21:23","modified_gmt":"2026-02-04T14:21:23","slug":"xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero","status":"publish","type":"post","link":"https:\/\/www.receipt-bot.com\/blog\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero","title":{"rendered":"Xero Feature Deep-Dive > How to Create and Manage Bills in Xero"},"content":{"rendered":"<div style=\"color: #002b60; font-family: sans-serif;\">\n<h1 style=\"color: #002b60; font-size: 2em; margin-bottom: 0px;\">How to Create and Manage Bills in your Xero Account<\/h1>\n<p><em style=\"color: #44546a; font-size: 0.95em; font-style: normal; margin-top: 0px; padding-top: 0px;\">Published: January 29, 2026<\/em><\/p>\n<hr style=\"border: 0; border-top: 3px solid #60c9fc; margin-top: 0; margin-bottom: 25px;\" \/>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Let&#8217;s say it is late afternoon, and your inbox keeps filling up. A supplier sends a PDF invoice, another forwards a scanned image, and one arrives as an Excel file. Your team still needs to code expenses correctly, apply the correct VAT treatment, and ensure nothing slips through approval before payment.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-5763 size-large\" src=\"https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-1024x576.png\" alt=\"\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-200x113.png 200w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-300x169.png 300w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-400x225.png 400w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-600x338.png 600w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-640x360.png 640w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-768x432.png 768w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-800x450.png 800w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-1024x576.png 1024w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-1200x675.png 1200w, https:\/\/www.receipt-bot.com\/blog\/wp-content\/uploads\/2026\/01\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero-cover-image-1536x864.png 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">This is the reality of accounts payable work. The quality of your billing process determines how clean your reporting looks and how well your cash flow remains under control.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Xero accounting software gives you a structured way to handle bills, but the value comes from how you use it day to day. When you enter bills correctly, approve them with intent, and pay them with visibility, you reduce errors and protect your reporting.<\/p>\n<h2 style=\"margin-top: 35px; margin-bottom: 20px; border-bottom: 2px solid #9dc3e6; padding-bottom: 8px; color: #002b60; font-size: 1.6em;\">Where To Create a New Bill in Xero Accounting Software<\/h2>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Starting a New Bill<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Xero lets you start a bill from several places and reduces friction from your workflow. First, sign in to your Xero account. You can click New Bill directly from the dashboard or use the plus icon and select Bill.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">You can also open Bills to Pay or the Purchases overview and create a bill from there. Each option opens the same New Bill screen, so the process stays consistent regardless of how you enter it.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Select the Supplier and Set the Foundation<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Once the bill appears, select the supplier. Xero account filters contacts as you type, which keeps things quick. If the supplier does not exist yet, create a contact directly from the bill screen and proceed.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">You can return later to add bank details or payment terms. What matters here is continuity. Bills stall when teams stop to perfect contact records mid-entry.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Set Bill Dates and Due Dates Correctly<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Xero defaults the bill date to today, which often has nothing to do with the invoice you&#8217;re looking at. Change it. Match the document. Then set the due date with intent, either manually or in accordance with agreed supplier terms.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">These dates drive cash flow visibility. When they drift, payment planning becomes reactive instead of controlled.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Add References and Source Documents<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Enter the invoice number in the reference field. It seems minor until someone needs to trace a payment three months later.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Keep the source document attached to the bill. If you manually attach each Xero invoice to the relevant transactions, it will waste your team&#8217;s time that could be used for advisory services and tax planning.<\/p>\n<p style=\"background-color: #f2f8fa; border-left: 5px solid #60c9fc; padding: 12px 18px; margin: 20px 0; font-size: 0.98em; line-height: 1.6;\">You can use tools like <strong>Receipt Bot<\/strong> to capture, extract and categorise receipts and bills. It even linked the transactions with the relevant invoices. So, during review, your team can open the document immediately, without searching inboxes or shared folders.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Use the Total Amount Field as Control<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Enter the expected total at the top of the bill. Xero accounting software compares this figure to the sum of line items during approval.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">When line items fail to match that total, Xero blocks approval. That interruption is useful. It forces a pause, a review, and often a correction that would otherwise go unnoticed into the ledger.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Line Items: Decide the Quality of Your Reports<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Each bill line needs a clear description, quantity, unit price, and general ledger code. Choose the correct account every time. Xero applies the default VAT rate based on the account you select.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">For example, when you code a taxi expense to a travel account, Xero automatically applies VAT to the expense. You can override the tax rate when the nature of the cost requires it, such as entertainment or partially recoverable VAT.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Apply Tracking Categories for Better Insight<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Tracking categories let you analyse costs by department, region, or cost centre. Apply them at the line level where possible. This approach gives you meaningful reporting without the need for journals or spreadsheets later.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Speed Up Entry with Products and Services<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Use products and services for recurring purchases. When you select an item, Xero automatically fills in the description, cost price, account, and VAT rate.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Review these items regularly. Keep cost prices and accounts up to date so your bills stay consistent and reliable.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Choose Between Tax-Inclusive and Tax-Exclusive Bills<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Select tax-exclusive Xero invoice templates when invoices list VAT separately. Select tax inclusive when the total already includes VAT. Use the no tax option only when VAT does not apply.<\/p>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Switching tax modes after entry requires manual corrections, so confirm the setting before approval. Correct tax treatment here prevents reporting issues later.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Save, Approve, and Control Bills<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">You can save a bill as a draft, submit it for approval, or approve it immediately. Draft bills allow review and correction. Bills awaiting approval support internal controls when another team member needs to review them. Approved bills move automatically to Awaiting payment.<\/p>\n<\/div>\n<div style=\"border: 1px solid #9dc3e6; border-radius: 6px; padding: 20px 25px; margin-bottom: 30px; box-shadow: 0 2px 4px rgba(0, 43, 96, 0.1);\">\n<h3 style=\"margin-top: 0; margin-bottom: 15px; font-size: 1.4em; color: #002b60;\"><strong>Manage Bills After Approval<\/strong><\/h3>\n<p style=\"margin-bottom: 15px; line-height: 1.6;\">Approved bills sit ready for payment. Your team can see what is due, what can wait, and how upcoming payments affect cash. This clarity only exists when earlier steps received attention.<\/p>\n<\/div>\n<h2 style=\"margin-top: 35px; margin-bottom: 20px; border-bottom: 2px solid #9dc3e6; padding-bottom: 8px; color: #002b60; font-size: 1.6em;\">Wrapping Up<\/h2>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Bills payable do not fail loudly. It fails quietly through rushed entry, weak review, and unnecessary manual work.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Xero accounting software gives you a framework that works when your team respects each stage. To make your workflow smooth, integrate your Xero account with the <strong>Receipt bot<\/strong>.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Receipt bot automates data entry, flags missing or duplicate bills, and links transactions to invoices to ensure your team works with clean data. It automatically exports your data to Xero after running validation checks.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">When your process stays deliberate, your reporting stays trustworthy, and payment decisions stop feeling reactive.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Stop letting manual bills slow your team down.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Let <a class=\"text_highlight-bg\" style=\"color: #ff6d00;\" href=\"https:\/\/www.receipt-bank.com\" target=\"_blank\" rel=\"noopener\">Receipt Bot<\/a> extract invoices, attach documents, and enter them directly into Xero. Approve, pay, and report with confidence.<\/p>\n<p style=\"font-size: 1.1em; margin-bottom: 30px; line-height: 1.6;\">Start your free trial today and take full control of your bills.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s say it is late afternoon, and your inbox keeps filling up. A supplier sends a PDF invoice&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5762,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Xero Feature Deep-Dive &gt; How to Create and Manage Bills in Xero - Receipt Bot<\/title>\n<meta name=\"description\" content=\"Learn how to create and manage bills using Xero accounting software and Xero invoice templates easily and efficiently.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.receipt-bot.com\/blog\/xero-feature-deep-dive-how-to-create-and-manage-bills-in-xero\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Xero Feature Deep-Dive &gt; How to Create and Manage Bills in Xero - 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