How to Use Hubdoc in Xero

Automating data entry is one of the most significant improvements an accountant can make, and combining Xero with its native data capture tool, Hubdoc, is a fantastic way to do it. Instead of drowning in piles of paper receipts and painstakingly keying in invoice details, this integration allows you to extract key data automatically and publish it directly to your general ledger. This guide provides a step-by-step walkthrough for effectively using Hubdoc with Xero to efficiently manage documents and streamline your bookkeeping.

What is Hubdoc and How Does it Work with Xero?

Hubdoc is a document management and data capture tool that Xero acquired and now includes for free with any of its Business Edition subscription plans (Starter, Standard, and Premium). Think of it as an intelligent digital filing cabinet. You send it bills, receipts, and statements, and it uses Optical Character Recognition (OCR) technology to read them, extract the key information—like the supplier, date, amount, and invoice number—and organize it for you.

The real power comes from its direct integration with Xero. Once Hubdoc processes a document, you can "publish" it to Xero with just a few clicks. This action doesn't just send over the data; it creates a corresponding transaction (a draft bill, spend money transaction, etc.) in Xero with a copy of the original document attached. This creates a clear, audit-proof trail from your financial statements right back to the source document, eliminating the need to search through folders or email archives later.

Getting Started: Your Initial Hubdoc Setup

Before you can start processing documents, you need to connect Hubdoc to your Xero organization and adjust a few basic settings. If you already have a Xero account, this process is very straightforward.

Accessing Your Hubdoc Organization

First, log into your Xero account. To access Hubdoc, click on your organization's name in the top-left corner. In the dropdown menu, you should see an option for Hubdoc. Clicking this will open your Hubdoc organization in a new tab.

If you've never used it before, Xero will guide you through a quick setup process. This typically involves confirming that you want to create a Hubdoc organization and automatically link it to your Xero account. This direct link is what allows Hubdoc to access your Chart of Accounts, contacts, and tax rates to make coding documents simple.

A Quick Tour of the Dashboard

When you first land in Hubdoc, you'll see a simple main dashboard with a few key areas:

• Tabs (All, Processing, Review, Failed, Archived): This is where your documents are sorted. Newly uploaded items go into "Processing," data-extracted documents ready for your attention go to "Review," and published documents move to "Archived."
• Upload Document: The green button for manually adding files from your computer.
• Accounts: This is where you connect Hubdoc directly to online portals for banks, utilities, and other suppliers to automatically fetch statements.
• Settings Cog: Located in the top-right corner, this takes you to your organization's settings.

Configuring Basic Settings

Click the settings cog icon in the top-right corner and navigate to the "Organization" tab. It's smart to review these settings before you do anything else. At a minimum, confirm that:

• Your organization's name is correct.
• The base currency is set to the correct currency (e.g., USD, CAD, GBP).
• You have set up your unique Hubdoc email address. It will look something like yourcompany_randomchars@app.hubdoc.com. You can customize the beginning of this email to make it more memorable.

Next, click the "Integration" tab. You should see that Hubdoc is already connected to your Xero organization. This is a good place to double-check that you want to publish documents as "Draft" bills or purchases. You can also allow Hubdoc to create new contacts in Xero if one doesn't already exist.

The Three Main Ways to Get Documents into Hubdoc

The first step in any workflow is getting your source documents into the system. Hubdoc provides three flexible methods to match how you and your clients work.

1. Auto-Fetching from Supplier Accounts

This is by far the most powerful feature. Hubdoc can log in to your online accounts with major suppliers—like utilities, phone companies, SAAS providers, and banks—and automatically download new bills and statements as they become available.

To set this up, go to the "Accounts" tab and click the "Add Account" button. Search for a supplier, such as AT&T, American Express, or your local power company. Hubdoc will prompt you to enter the same username and password you use to log into that supplier's online portal. Once connected, Hubdoc will securely pull all historical and future documents it can find. This "set it and forget it" approach ensures you never miss a bill and is perfect for recurring expenses.

2. Emailing Your Documents

Every Hubdoc organization has a unique email address. You can send documents to this address, and they will automatically appear in your Hubdoc dashboard for processing. This method is incredibly useful for:

• Forwarding emailed invoices: When a supplier emails you a PDF invoice, you can simply forward it to your Hubdoc address.
• Setting up auto-forwarding rules: For suppliers who email you regularly, you can create a rule in your email client (like Gmail or Outlook) to automatically forward their emails to Hubdoc.
• Client collaboration: Your clients don’t need a Hubdoc login. They can just forward their invoices or receipts to your organization's dedicated email address.

3. Using the Mobile App and Manual Upload

For paper receipts and one-off documents, the Hubdoc mobile app and manual upload feature are your best friends.

• Mobile App: Download the Hubdoc app on your smartphone. When you are on the road, pay for a business lunch, or purchase office supplies, just snap a photo of the receipt with the app. It will upload directly to your Hubdoc organization for processing.
• Manual Upload: If you have a document saved on your computer, you can easily drag-and-drop it into the Hubdoc browser window or use the "Upload Document" button. This is ideal for uploading scanned documents or existing digital files.

The Daily Workflow: From Document Review to Automatic Publishing

Once documents are in Hubdoc, your job is to review the extracted data, assign the proper accounting codes, and publish them to Xero. Your goal should be to automate this process as much as possible.

Reviewing the Extracted Data

After a document finishes processing, it moves to the "Review" tab. Click on a document to open the detail view. On the right-hand side, you will see the data extraction pane, where Hubdoc presents the information it identified:

• Supplier: The name of the vendor.
• Contact: The Xero Contact this will be posted to.
• Date: The date on the invoice or receipt.
• Due Date: If applicable.
• Total Amount: The full purchase amount.
• Tax: The detected sales tax.

Your job is to quickly verify these fields are correct. Below this, you will see the destination fields for Xero. This is where you'll do your coding. You can select the correct account from your Chart of Accounts, add a description, and assign customers if needed.

Creating Supplier Rules for Automation

Here is where you unlock massive time savings. Constantly coding invoices from the same supplier to the same account is tedious. With Hubdoc, you only need to do it once.

After you have coded a document for a supplier for the first time, click "Save & Close." Now find that document in Hubdoc again and in the data extraction window go to the publishing options and there you should see a blue check that confirms it has been saved as what is known in Xero as a Supplier Rule.

Once this rule is configured, the next time an invoice comes in from that same supplier, Hubdoc will automatically apply all the fields, including the Xero account and tax treatment. The document might even skip the "Review" tab and publish to Xero automatically, depending on how confident Hubdoc is in the data extraction. Spending ten minutes setting up these rules for your top twenty vendors will save you hours every month.

Publishing to Xero

Once you are happy with the coding, simply click the "Publish" button. Hubdoc sends the data and the source document image directly to Xero. The transaction is created in Xero as a draft bill, which you (or your clients) can then approve and pay. More importantly, a "View in Hubdoc" link now appears on the Xero transaction, and a file icon indicates that a source document is attached. This creates a rock-solid audit trail and puts critical information exactly where you need it.

Best Practices for a Smooth Workflow

To get the most out of the Xero and Hubdoc integration, keep these practical tips in mind:

• Connect to Xero First: Always make sure Hubdoc is fully integrated with your Xero file before you start uploading and publishing documents. This ensures your Chart of Accounts, contacts, and tax rates are correctly synced.
• Clear the Review Tab Regularly: Make it a daily or weekly habit to log in and process all items in the "Review" queue. Letting documents pile up can create a bottleneck and defeat the purpose of real-time data entry.
• Invest in Supplier Rules: The initial time spent creating rules for your high-volume vendors pays huge returns. Proactively configure rules to maximize automation.
• Close the Loop with Bank Reconciliation: The final step of this workflow happens in Xero's reconciliation screen. The bills and spend money transactions created via Hubdoc will now be waiting to be matched against the outgoing payments from your bank feed. This makes reconciliation fast, accurate, and verifiable.

Final Thoughts

Using Hubdoc effectively with Xero can transform your bookkeeping from a reactive, manual task into a proactive, automated workflow. By setting up auto-fetch connections, utilizing the dedicated email address, and configuring supplier rules, you can eliminate hours of data entry and create highly accurate financial records with searchable, audit-ready documentation for every transaction.

Just as tools like Hubdoc and Xero handle the tedious parts of data entry, professionals need efficient ways to handle complex issues that arise from those transactions. When a coded expense raises a tough question about multi-state tax implications or potential deductibility, our AI tax research assistant, Feather AI, provides citation-backed answers in seconds. This allows you to move from streamlined bookkeeping directly to high-value strategic advice, without losing momentum on manual research.