Skip to content

Which software is best for processing purchase invoices?​

Which software is best for processing purchase invoices?

Processing purchase invoices online is important nowadays otherwise you will be finding yourself drowning in paperwork.

To process purchase invoices fast and efficiently there are three main options:

  • Hubdoc
  • Dext
  • AutoEntry

But which one is best? Well read on to find out…

To process purchase invoices and receipts you can either use the Hubdoc App on your phone or email your purchase invoice, using a unique email address, into Hubdoc.

Once in Hubdoc, the software uses Optical Character Recognition (OCR) to read the key data on the invoice (e.g. date, amount, supplier name).

This allows Hubdoc to complete some fields automatically. This reduces manual data input – saving time and reducing the risk of errors.

Once a purchase invoice has been processed in XERO the data, along with a PDF copy of the purchase invoice, is also automatically transferred into XERO.

Pros

✅ COST Free to use with XERO software

✅ DIRECT XERO INTEGRATION So data transfer between XERO and Hubdoc is seamless

✅ UNLIMITED USERS No limit on number of users

Cons

❌ ONLY XERO Hubdoc can’t be integrated if the accounting software is not XERO.

❌ DATA ACCURACY OCR isn’t as accurate as Dext / AutoEntry

❌ LESS AUTOMATION No advanced rules available which probably means more manual input when processing complex purchase invoices and high volumes

Our advice...

Hubdoc is typically best suited to XERO software-using businesses with a turnover of up to £1m who don’t have high volumes of purchase invoices.

Dext is similar to Hubdoc in how purchase invoices and receipts are uploaded. You can either use the Dext App on your phone or email your purchase invoice, using a unique email address, into Dext. As with Hubdoc a PDF copy of the purchase invoice is transferred into your accounting software.

Dext has a high accuracy data capture which allows it to scan invoices and receipts with impressive accuracy. It can even identify debit or credit card numbers.

Where a debit or credit card has been used, Dext can mark the purchase invoice as paid and record the transaction in the relevant bank or credit card account in the accounting software. For businesses which have a high volume of credit card transactions spread over multiple credit cards this advanced functionality is a big time saver.

Dext can be integrated with multiple accounting software (including XERO, Sage or QuickBooks).

Dext is more expensive than Hubdoc and AutoEntry – which reflects the extra functionality.

Pros

✅ DATA ACCURACY Does better job of processing complex invoices (including splitting multi-line invoices, different VAT rates) saving time due as less manual input is needed

✅ ADVANCED RULES Can create bank rules so Dext can process a paid purchase invoice to the correct bank or credit card account in the accounting software – saving time

✅ OTHER SOFTWARE Integrates with other software including XERO, Quickbooks and Sage

Cons

❌ COST Unlike Hubdoc there’s a monthly cost

❌ COMPLEXITY More features means there’s more to learn and set up

❌ VERSION LIMITATIONS Lower versions of the software may restrict user numbers and don’t give access to some of the best features

Our advice...

Dext is best suited to businesses where there is complexity and volume. By that we mean businesses who have large volume of invoices (more than 250 per month) and/or have complex purchase invoices and/or have many bank or credit cards being used for payments each month.

AutoEntry is again similar to Hubdoc and Dext in how purchase invoices and receipts are uploaded. You can either use the AutoEntry App on your phone or email your purchase invoice, using a unique email address, into AutoEntry. And as with Hubdoc and Dext a PDF copy of the purchase invoice is transferred into your accounting software.

AutoEntry is cost effective as pricing is pay for what you use which makes it affordable for businesses with fluctuating invoice volumes. This means that it’s often cheaper than Dext for the same job.

It also has good integration with accounting software (including XERO, QuickBooks and Sage).

However, AutoEntry isn’t as user friendly as Dext as the interface is a bit more clunky and less intuitive meaning it can feel a little dated in places. Unlike Dext it will not auto publish so you will still need to manually review and approve most transactions.

Pros

✅ COST Uses a credit-based system, often making it cheaper for businesses with high transaction volumes

✅ OTHER SOFTWARE Integrates with multiple software including XERO, Quickbooks, Sage & FreeAgent

✅ BANK STATEMENT EXTRACTION Is known for its superior bank statement extraction, especially from PDF scans – saves time importing the data for bank accounts that don’t integrate directly with the accounting software

Cons

❌ USER INTERFACE Not as modern and easy to use as Hubdoc or Dext

❌ PROCESSING TIME Often slower than Dext – will be an issue where speed is important

❌ AUTOMATION RULES Dext has more rules meaning there’s more manual oversight needed with AutoEntry

Our advice...

AutoEntry is ideal for clients who aren't using XERO, and don't have the complexity or volume that requires Dext.

Overall Summary

Running a business is hard enough without drowning in paperwork. 

Choosing the right tool isn’t about features – it’s about freeing up time and getting control over your numbers. 

Having read this article you should now have clarity as to which of the three (Hubdoc, Dext or AutoEntry) is likely to be the best fit for your business.  But if not, don’t fear, get in touch!

Because when your finances are clear, decisions are easier, growth is faster, and life gets a whole lot better. 

Still unsure which is right for you?

We are happy to talk you through the options and advise! Get in touch by dropping us an email to [email protected] or call one of the team on 0161 410 0020. You can also click here to contact us.

Disclaimer

You must take professional advice before making any decisions based on the information that you have learnt here. While every effort has been made, to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information.  Professional advice should be taken based on specific circumstances in each individual case.  Whilst we endeavor to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.

Related Articles

In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.  

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software. 

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software. 

Saving time bookkeeping isn’t the only benefit for the business…. 

 

 

What are the main benefits to a business using bank feeds?

  • Saves Time & Money Bookkeeping

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software. 

 This saves the business a HUGE amount of time (& money) spent on bookkeeping.  

  • Improves Cash Flow Visibility

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date. 

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.  

This makes it easier for you to plan your cashflow, and take action to improve it. 

  • Enhanced Accuracy

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading. 

 Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate. 

How to Link Your Bank to Xero

  • 1. Setup Online Banking:

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks. 

  • 2. Add Bank Account in Xero:

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank. 

  • 3. Enable Bank Feeds:

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection. 

 

Are Bank Feeds Safe & Secure?

Yes. 

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account. 

 Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure: 

 

  • Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties. 

 

  • Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations. 

 

  • Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected. 

 

people are connected
KIm Marlor the MD of Krystal Clear Accounting
krystal clear accounting

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.  

 They automate and eliminate what is otherwise a time consuming and error prone manual process.  

 Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

Request a Call Back: