If you’re still dealing with pockets of paper receipts, mystery card transactions, and “what was this for?” messages at month-end, you’re not alone. UK small businesses regularly lose serious time to admin — Sage research has suggested as much as 2 days every month can disappear into financial admin. The good news is you can build a receipt capture workflow that’s genuinely close to zero-touch: receipts arrive automatically, the data is extracted, the right supplier and VAT rate are applied, and Xero rules do the rest.

This article walks you through a simple, real-world setup using Hubdoc, mobile capture, and a few supplier rules that stop errors before they happen.

Along the way, I’ll point you to a few helpful guides and services such as Xero bookkeeping, bookkeeping services, and VAT in Xero, so you can tighten up the whole workflow, not just receipts.

What “zero-touch” actually means (and what it doesn’t)

Zero-touch posting doesn’t mean “no checks ever”. It means:

• Receipts and bills are captured without you chasing them.
• Key fields (supplier, date, total, VAT) are extracted reliably.
• Most transactions post to the correct account and VAT rate automatically.
• You only review exceptions: odd VAT, unusual suppliers, and anything high value.

Think 80–90% automated, with a quick weekly review — not a stressful monthly clean-up.

If you’re building towards Making Tax Digital compliance and stronger digital records, this approach also keeps you in a much safer place for audits and VAT evidence. 

Step 1: Set the foundations in Xero first

Before you touch Hubdoc, get your baseline right in Xero:

1. Chart of accounts: keep it simple, and avoid 5 versions of the same expense code.
2. VAT settings: confirm your scheme (Standard, Flat Rate, Cash Accounting, etc.) and your default VAT behaviour.
3. Bank feeds: make sure feeds are connected and stable.
4. Tracking (if you use it): decide now whether you need tracking categories or project tracking.

If you want a checklist-style overview, see Xero bookkeeping basics and month-end in Xero.

Step 2: Connect Hubdoc properly (and choose the right publish behaviour)

Hubdoc works by capturing documents (email, upload, mobile photos), extracting data, and publishing transactions into Xero with the source document attached.

When you connect Hubdoc to Xero:

• Set your organisation defaults (currency, tax handling, file naming rules).
• Decide what you publish:
  • For most small service businesses, publish as Spend Money for card receipts and Bills for supplier invoices.
  • If you’ve got approval processes, you can publish drafts and approve inside Xero.

If you’re already leaning into automation, the guide Automations in Xero pairs perfectly with this setup.

Step 3: Make mobile capture idiot-proof (so it actually gets used)

Your workflow only works if people follow it. Make it easy:

• Install Hubdoc on every phone that buys anything for the business.
• Set 1 rule: photo immediately, not “later”.
• Photograph receipts flat, with the total and VAT visible.
• Use a naming habit if helpful (e.g., “Client meeting – Bristol”).

If you’ve got a team, this is where you win or lose. The common failure point isn’t software — it’s “I’ll send it later”.

Step 4: Set supplier rules so data lands cleanly every time

Zero-touch depends on consistency. You’re trying to stop the same supplier appearing as:

• “Amazon”, “AMZN MKTP”, “Amazon EU”, “Amazon Prime”
• “Shell”, “Shell UK”, “SHELL 12345”

Here’s how you tighten that up:

1) Clean supplier mapping in Hubdoc

In Hubdoc, confirm the supplier name it has detected and map it to the correct contact in Xero. Do this once properly and it saves you pain later.

2) Set default accounts + VAT codes per supplier

For regular suppliers, set sensible defaults:

• Office supplies → Office costs (20% VAT if applicable)
• Fuel → Motor/fuel (often VAT receipt dependent)
• Subscriptions → Software (often VAT depends on supplier location)

This reduces miscodes and VAT mistakes.

3) Decide what counts as “receipt” vs “invoice”

• Card receipts (train, parking, lunches) usually flow as Spend Money.
• Supplier invoices (stock, subcontractors, consultants) usually flow as Bills.

That simple split makes reconciliation and reporting cleaner.

If VAT is a recurring headache, VAT return services and VAT in Xero are worth a look.

Step 5: Build Xero bank rules that do the heavy lifting

Once your suppliers are consistent, Xero bank rules can take over. The goal is:

• When Xero sees “BT” → it auto-codes to Telephone & Internet with the right VAT
• When Xero sees “GWR” → it auto-codes to Travel
• When Xero sees “Adobe” → it auto-codes to Software subscriptions

Bank rules are the bridge between “document captured” and “transaction posted correctly”. If you want to go deeper, use Xero bank reconciliation like a pro and the “receipt capture” section in 5 quick Xero tips. 

Step 6: Put a weekly “exceptions” review in the diary

Zero-touch only stays zero-touch if you review little and often:

• Check Hubdoc inbox for items with missing VAT, odd totals, or unknown suppliers
• Confirm anything that looks like a duplicate
• Spot-check higher value items
• Publish and move on

This takes 10–20 minutes when the workflow is working. It takes hours when you leave it until month-end.

If you manage multiple sites, projects, or properties, you’ll also want tighter reporting so costs land where they should — building management reports is a useful context here.

Step 7: Lock down the “supplier rules” for teams (so you stop chasing)

If you’re serious about zero-touch, give your team clear rules:

• No receipt = reimbursement delayed (simple, fair, consistent)
• Always use the company card where possible
• Always capture immediately on the Hubdoc app
• For supplier invoices, use a dedicated accounts email address

For property-heavy businesses, clean receipts also feed into wider workflows like service charge accounting and residential property management accounting, where audit trails matter.

FAQs

1) Do you still need receipts if the bank transaction is in Xero?

Yes. A bank line tells you money moved, not what it was for or whether VAT can be claimed. For VAT-registered businesses, the receipt/invoice is often your evidence. 

2) What’s the best way to handle Amazon purchases?

Treat Amazon as a “needs review” supplier unless you’re disciplined. Some orders include VAT invoices, some don’t, and some split across shipments. A good rule is: capture the invoice/receipt in Hubdoc, then let Xero rules code the bank line — but review VAT carefully.

3) Should you publish as Bills or Spend Money?

Use Bills when you’re dealing with supplier invoices, due dates, and payables control. Use Spend Money for card receipts and ad-hoc expenses. Mixing them randomly makes your reporting messy and can hide what you owe.

4) Can you automate recurring supplier invoices?

Yes. For fixed monthly costs (rent, software, regular subcontractors), use recurring bills or repeating transactions in Xero, then attach documents if needed. This is part of the wider automation approach covered in Automations in Xero.

5) What if your VAT scheme is Flat Rate?

You still need receipts for evidence and clean records, but VAT coding behaves differently. Make sure your settings and defaults reflect the scheme properly, or you’ll end up with confusing VAT reports.

6) How does this help with Making Tax Digital?

MTD pushes you towards consistent digital records and cleaner submissions. A strong receipt capture workflow means fewer missing documents, fewer coding errors, and less stress when it’s time to file. 

Want this set up properly (and kept tidy)?

If you want a receipt workflow that runs in the background — with clean supplier rules, reliable VAT treatment, and a quick weekly exceptions check — FHP Accounting can help you build it and keep it consistent.

Start with Xero bookkeeping or bookkeeping services, and if VAT is part of the picture, pair it with VAT return services.