How SpendStream automatically assigns billable expenses in Xero

1. Open the transaction
2. Edit it
3. Click assign expenses
4. Select the right lines
5. Search for the client
6. Click assign
7. Accept the changes
8. Save

Even with bank rules reconciling your transactions to the right accounts, Xero still doesn’t assign billable expenses to customers automatically. That part falls on you. SpendStream closes that gap. It connects to your Xero organisation and assigns billable expenses to the right clients — based on rules you set once and forget.

Cut the busywork from every transaction

If you’re managing dozens — or hundreds — of transactions each month, the time spent assigning expenses adds up quickly. SpendStream removes that burden by:

• Automatically assigning billable expenses to the right clients
• Eliminating repetitive clicks and manual data entry
• Keeping your reports accurate and invoice-ready
• Ensuring no recoverable expense slips through the cracks

On average, SpendStream removes at least eight clicks per transaction — and saves hours every week. That’s hours you get back. Hours your team can spend on work that actually grows the business.

How it works

1. Connect your Xero organisation

Start by connecting your Xero organisation to SpendStream. The connection uses Xero’s standard OAuth flow — the same one you’ve used with other tools. Once connected, SpendStream can read your reconciled transactions, tracking categories, and contact data.

Nothing changes in Xero until you create rules and choose to apply them. Your bank feeds, reconciliation process, and existing setup stay exactly as they are.

2. Create your assignment rules

Define rules that match how your business already works. SpendStream supports two rule types, and you can use either — or both — depending on your setup.

Tracking categories. Use the divisions or custom tracking options you’ve already set up in Xero. If you tag transactions by project, department, or client, SpendStream matches those tags and assigns the expense automatically. Learn how tracking categories work in SpendStream.

Reference tags. Pair SpendStream with your existing Xero bank rules. Add a reference code to transactions as they reconcile, and SpendStream uses that code to assign the expense to the right client. See how reference tags work with your bank rules.

You can create as many rules as you need. A single rule might assign all transactions with a “Project Alpha” tracking category to one client. Another might handle reference codes from a specific bank feed. There’s no limit on the number of rules. Read more about creating assignment rules.

3. Let automation take over

Once your rules are active, SpendStream checks your Xero organisation for newly reconciled transactions and applies your rules automatically. Each matched transaction is assigned to the correct client — no clicks, no searching, no manual intervention.

How SpendStream syncs with Xero

SpendStream syncs with your Xero organisation every hour. Each sync picks up newly reconciled transactions and processes them through your active rules.

Because SpendStream works with reconciled transactions, it never interferes with your bank feeds or reconciliation process. Your existing workflow stays exactly as it is — SpendStream handles the assignment step that comes after.

You can also run a historical sync. Select a date range and SpendStream will apply your current rules to past transactions. It’s useful for catching assignments you missed, or re-processing expenses with updated rules.

Review mode — test before you commit

Want to see how your rules perform before going fully automated? SpendStream includes a review mode.

When review mode is on, matched transactions are flagged for your approval before any changes are created in Xero. You see exactly which expenses would be assigned to which clients. Nothing touches your live data until you say so.

Once you’re confident your rules are working as expected, switch off review mode. From that point, assignments happen automatically in the background.

Review mode is the safest way to get started — and it’s available on every plan, including the free tier.

A clear record of every assignment

SpendStream keeps a complete record of every assignment it makes. You can see exactly which transactions were matched, which rules triggered the assignment, and when it happened.

If something doesn’t look right, you can review and adjust. There’s no guessing — every assignment is traceable back to the rule that created it.

Who is SpendStream for?

SpendStream is built for anyone who manages billable expenses in Xero and is tired of the manual assignment process.

Bookkeepers and accountants juggling multiple client accounts. Each client has different projects, different cost allocations, and different reporting needs. SpendStream lets you set up rules per client and let automation handle the repetition.

Small business owners who want to pass costs through to clients accurately. If you’re tracking project expenses and billing them back, SpendStream makes sure nothing gets missed — without adding hours to your month-end.

Teams that have outgrown manual processes. When your transaction volume grows beyond what one person can handle by clicking through Xero, SpendStream scales with you. Create unlimited rules, sync unlimited transactions, and keep your reports clean.

The result

SpendStream transforms your expense workflow from a manual, error-prone process into a streamlined system that runs in the background.

• No more scrolling through transactions
• No more typing client names repeatedly
• No more backlog at month end
• No more missed billable expenses

Just accurate, automated expense allocation — ready for invoicing. Clean books. Faster month-end. Less manual work.