# How does invoice processing work with Xero accounting software?
Xero is a cloud accounting platform with robust invoice processing capabilities: (1) Invoice Receipt - receive invoices via dedicated email (bills@xero.com), manual upload, or supplier portal; (2) Data Extraction - Xero's AI extracts invoice data (supplier, date, amount, tax); (3) Review & Approval - invoices appear in "Bills to Review", assign to correct account codes and tracking categories, route for approval if workflows enabled; (4) Matching - match to purchase orders or quotes, reconcile with bank feeds when paid; (5) Payment - schedule payments individually or in batches, pay via bank transfer, Stripe, GoCardless, or direct debit, Xero updates bank reconciliation automatically; (6) Reporting - track payables, supplier balances, cash flow forecasts, and spending by category. Advanced features: multi-currency support, recurring bill templates, supplier payment terms tracking, approval workflows for large invoices, integration with 800+ apps (bill payment, procurement, inventory). Xero pricing: £12-37.50/month depending on features. Benefits over manual processing: 75% faster invoice processing, automatic bank reconciliation, real-time financial reports, supplier portal access, mobile app for approvals, and Making Tax Digital (MTD) compliance for UK businesses.
## Key Takeaways
- Xero is a cloud accounting platform with robust invoice processing capabilities: (1) Invoice Receipt - receive invoices via dedicated email (bills@xero.com), manual upload, or supplier portal; (2) Data Extraction - Xero's AI extracts invoice data (supplier, date, amount, tax); (3) Review & Approval - invoices appear in "Bills to Review", assign to correct account codes and tracking categories, route for approval if workflows enabled; (4) Matching - match to purchase orders or quotes, reconcile with bank feeds when paid; (5) Payment - schedule payments individually or in batches, pay via bank transfer, Stripe, GoCardless, or direct debit, Xero updates bank reconciliation automatically; (6) Reporting - track payables, supplier balances, cash flow forecasts, and spending by category.
- Advanced features: multi-currency support, recurring bill templates, supplier payment terms tracking, approval workflows for large invoices, integration with 800+ apps (bill payment, procurement, inventory).
- Xero pricing: £12-37.50/month depending on features.
## Related Topics
- invoice xero
- xero invoice processing
- xero bills
- xero accounts payable