If you've started researching bookkeeping software, you've probably come across both Xero and HubDoc and wondered whether you need one or the other, or both. The short answer is they solve different problems and work best together — here's how.
What is the difference between Xero and HubDoc?
Xero is a complete cloud accounting platform — it handles invoicing, bank feeds and reconciliation, payroll, GST reporting, and the financial statements your accountant relies on. HubDoc is a much narrower tool focused on one job: capturing receipts and bills and turning them into data Xero can use. Comparing them directly is a bit like comparing a filing cabinet to a scanner — they're not really competing for the same role.
Do I need both Xero and HubDoc?
For most small businesses, yes. Xero is the system of record — the ledger everything else feeds into. HubDoc removes one of the most tedious parts of bookkeeping: manually typing up every fuel receipt, supplier invoice, and utility bill. Without it, someone on your team (or your bookkeeper) is spending hours each month on data entry that software can do automatically.
How does HubDoc capture receipts and bills?
You can snap a photo of a receipt with the HubDoc mobile app, forward a supplier bill to a dedicated email address, or drag a PDF into the web dashboard. HubDoc reads the document using optical character recognition, pulls out the supplier name, date, total, and GST component, and creates a draft transaction. From there it publishes into Xero as a bill or spend transaction ready for review and reconciliation against your bank feed.
What about paper receipts that fade?
This is one of the underrated benefits — thermal till receipts fade within months, which can be a problem if the ATO asks to see substantiation for a claim years later. Capturing them in HubDoc as soon as you receive them creates a permanent digital copy alongside the extracted data, solving the fading-receipt problem for good.
Is HubDoc included with a Xero subscription?
Xero owns HubDoc, and it's bundled into most Xero business plans at no additional cost, though inclusion can vary depending on your specific plan tier. If you're already on Xero and haven't switched HubDoc on, it's worth checking your subscription — you may already have access to a tool that's currently sitting unused.
Are there alternatives worth considering?
Other receipt-capture tools exist, and some businesses use Dext or similar products instead of HubDoc. The right choice usually comes down to what's already bundled with your accounting software, how your team prefers to submit expenses, and whether you need more advanced features like multi-currency or line-item extraction that some paid alternatives offer over HubDoc's simpler feature set.
Will bookkeeping software replace the need for a bookkeeper?
No — software reduces manual entry and errors, but someone still needs to review how transactions are coded, make sure GST is being treated correctly, reconcile payroll against STP reporting, and pick up anything unusual before it becomes a bigger problem at tax time. The best setup pairs good software with a bookkeeper who knows what to look for.
The Metier Group helps Perth businesses set up Xero and HubDoc correctly from day one, so your books stay accurate with minimal manual effort. Learn more about our bookkeeping services, or contact us to get your systems sorted.