Want a Clearer Picture of Your Business Finances? Start Here.

If you're a small business owner still learning the ropes in Xero, let me introduce you to one of the best features you might not be using yet: Bills to Pay.

What Is Xero Bills to Pay?

Xero’s Bills to Pay feature helps you track, manage, and pay your supplier bills more efficiently. Instead of reacting to bills when they come in—or worse, forgetting them altogether—you enter them into Xero ahead of time, giving you a proactive handle on your upcoming expenses.

Why Use Bills to Pay in Xero?

If you’re currently paying bills the moment they land in your inbox, you’re not alone. But that approach can make it hard to know how much money is really available in your business bank account. Late fees, cash flow crunches, and stress often follow.

Using Bills to Pay in Xero means:

• No more surprise bills you forgot about

• Fewer last-minute scrambles to free up funds

• A clearer picture of your upcoming expenses

• Better budgeting and financial planning

  
  

How to Set Up and Use Bills to Pay in Xero

This doesn’t have to be complicated. Here’s a quick, easy routine you can adopt—even if you’re new to Xero.

Step 1: Forward Bills to Xero

As soon as you receive a bill, forward it to your unique Xero email-in address. This is found under your business settings in Xero. Or, if you use Hubdoc, simply snap a photo of the bill and it uploads automatically.

Step 2: Let Xero Create a Draft Bill

Once the email is received, Xero automatically creates a draft bill with key details filled in—supplier name, date, amount, and more. This saves you time and reduces the risk of data entry errors.

Step 3: Set the Due Date and Approve

Review the draft, make sure everything looks good (especially the due date and the account it’s coded to), and then approve the bill. If you’re not sure about coding, your bookkeeper can help get this right.

Step 4: Review Weekly

Make it a habit to check your Bills to Pay list in Xero once a week. This gives you a quick snapshot of:

• What’s due soon

• What’s already paid

• What’s coming up in the next few weeks

You’ll make better decisions when you know exactly what financial commitments are on the horizon.

The Big Benefit: Less Stress, More Control

Taking a few minutes each week to manage bills in Xero can seriously reduce financial stress. You’ll always know what’s coming up, and your cash flow will feel more predictable and manageable.

Final Thoughts: Don’t Go It Alone

If you’re new to Xero or bookkeeping in general, this might all feel like a lot. But once you get the hang of it, it becomes second nature. And remember: you don’t have to do this alone. A good bookkeeper can help set everything up, show you how to use Xero effectively, and make sure your bills (and your books) stay in good shape.

Bills to Pay - Xero