Hubdoc comes with most Xero plans, and Xero now has its own built-in document capture as well. Dext costs extra. So the free option wins, right? Not always. The real cost of a receipt app isn't only the subscription. It's also the time spent fixing what it gets wrong. Boring Barry uses none of them. He keeps receipts in a shoebox labelled "Q3 (probably)" and types them in by hand, while billing for it.

Published: October 2026

Prices checked: 11 October 2026

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What Do These Tools Do?

All three capture receipts and bills, read the details off them and get them into Xero, so each bank transaction has a document to match.

• Hubdoc is a document capture tool owned by Xero. Xero bought it in 2018. It collects documents, extracts the key fields and publishes them to your accounting software.
• Xero Smart Document Capture is Xero's own built-in capture, found in the Files inbox in Xero. Xero says it's available on all small business plans at no extra cost. In Australia it is rolling out as a beta. Xero's July 2026 blog post lists tax extraction (including GST), bank statement extraction and contact rules as features it is delivering next, so check the Xero blog or Xero Central for what is live before relying on them.
• Dext (formerly Receipt Bank) is a standalone bookkeeping automation platform. Beyond capture, it adds supplier rules, line-item extraction, approvals and integrations with many accounting packages.

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Cost

• Hubdoc: Australian price (checked 11 Oct 2026): Included in Xero Ignite, Grow, Comprehensive and Ultimate plans when connected to the subscription. Not included on Xero Cashbook or Ledger. Standalone: $15 AUD a month after a free trial.; Notes: Standalone plans sync to Xero and QuickBooks Online
• Xero Smart Document Capture: Australian price (checked 11 Oct 2026): No extra cost on all Xero small business plans (per Xero); Notes: Beta in Australia
• Dext (business): Australian price (checked 11 Oct 2026): $33.58 AUD a month excl. GST, billed annually ($403), for 250 documents a month and 5 users (the plan shown on Dext's AU pricing page); Notes: Line-item extraction add-on from $28.50 a month or $0.70 a document. 14-day free trial, no card needed.

Sources: Xero AU plan overview; Xero AU Smart Document Capture page; Hubdoc pricing; Dext AU business pricing.

Xero hasn't said publicly how long Hubdoc will stay bundled now that its AU Hubdoc page redirects to Smart Document Capture. If you rely on Hubdoc, check with Xero before planning around it.

Hypothetical example: the "free" trap

Assumptions: a business processes 150 documents a month, and each correction takes 2 minutes. The error rates below are illustrative only. They are not measured accuracy rates for any product.

• If 15% need fixing: 150 × 15% × 2 minutes = 45 minutes a month
• If 5% need fixing: 150 × 5% × 2 minutes = 15 minutes a month

At low volume the difference is small, and a no-extra-cost tool wins. At several hundred documents a month across several users, the time difference starts to matter more than the subscription.

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Xero Integration

Hubdoc and Xero's own capture

Both work directly with Xero. Hubdoc also publishes to QuickBooks Online. Smart Document Capture works inside one Xero organisation.

Dext

Dext says it connects to more than 36 accounting platforms, including Xero, QuickBooks, Sage and FreeAgent. With Xero, it pulls in tracking categories, purchase orders and your full chart of accounts. It sends richer extracted data back, including flags for invoices missing attachments.

If you use Xero tracking categories by job, location or department, Dext's handling of tracking is a practical advantage.

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Line Items and Complex Documents

All three extract supplier, date, total and tax to some degree. The differences show on:

• Multi-line supplier invoices, where different lines go to different accounts or jobs
• Crumpled or handwritten receipts
• Foreign currency invoices

Dext is built for line-item coding and supplier rules that apply the right account and tax code. Hubdoc is simpler and works best on simple documents. Xero's own capture can extract line items, but some automation features are still on its roadmap in Australia.

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Workflow and Team Use

• Hubdoc / Xero capture: suits a business owner or one admin person uploading receipts and bills.
• Dext: suits teams, with multiple users submitting expenses, approval steps and a bookkeeper reviewing before anything reaches Xero.

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Which One Should You Use?

Hubdoc or Xero's own capture may suit you if:

• You use Xero (on a plan that includes it)
• You process a modest number of simple documents each month
• One or two people handle all the paperwork
• You don't need line-item coding or tracking categories

Dext may suit you if:

• You process hundreds of documents a month
• Several staff submit receipts and expenses
• You code bills by job, location or department
• Your supplier invoices have many lines going to different accounts
• You use accounting software other than Xero, or several packages

Neither, if:

Your current bookkeeper still asks you to post them a shoebox. In that case, the app is not your problem.

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Setting It Up Properly

Whichever tool you choose, the setup decides whether it saves time:

1. Connect it to Xero and sync the chart of accounts and tax rates.
2. Set supplier rules for regular suppliers, so the account and GST code are applied consistently.
3. Set up email forwarding, so supplier bills go straight to the app rather than your inbox.
4. Decide who reviews documents before they're published to Xero.
5. Close duplicate entry paths, such as staff also entering bills directly in Xero.

Our monthly bookkeeping includes setting up and running the right capture tool for your volume, and payables and cashflow handles the bills once they're in. If the receipts backlog is already out of control, start with a Sydney bookkeeper catch-up.

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What the ATO Needs, Whichever App You Use

A capture app is only useful if what it stores meets the ATO's record-keeping rules:

• Tax invoices: to claim a GST credit on a purchase over $82.50 including GST, you need a valid tax invoice. A photo of an EFTPOS slip that doesn't show the supplier's details isn't a tax invoice.
• Digital copies are fine: digital invoices and copies are acceptable if they contain the required information and stay readable and accessible.
• Keep them for 5 years: GST records generally need to be kept for 5 years.
• Plan for leaving the app: if you cancel a subscription, make sure you can export the documents and keep them for the full period.

Sources: ATO, When you can claim a GST credit; ATO, GST records.

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Switching Between Tools

1. Pick a start date, ideally the first day of a BAS period.
2. Export or download everything from the old tool before the subscription ends.
3. Set up the new tool's supplier rules before switching email forwarding.
4. Change supplier billing emails to the new forwarding address.
5. Run both for one month and check nothing is missed or duplicated.
6. Turn off the old tool's connection to Xero.

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The Verdict

For most small Sydney businesses on Xero with a manageable number of simple receipts, Hubdoc or Xero's own capture can do the job at no extra cost. As volume, team size or coding complexity grows, Dext's extra control may save more time than its subscription costs. Test each on a month of your own documents. The worst option is Barry's: none of them, plus a shoebox.

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FAQ

Is Hubdoc free?

It's included in Xero Ignite, Grow, Comprehensive and Ultimate plans when connected to the subscription. On its own, it's $15 AUD a month.

Does Xero have its own receipt capture now?

Yes. Xero Smart Document Capture is available on Xero small business plans at no extra cost. In Australia it's rolling out as a beta.

How much does Dext cost in Australia?

Dext's AU business pricing page shows $33.58 a month excl. GST, billed annually at $403, for 250 documents a month and 5 users. Check the page for other volumes.

Does Dext work with Xero?

Yes. Dext syncs tracking categories, purchase orders and the chart of accounts with Xero.

Can I use Hubdoc without Xero?

Yes. Hubdoc's standalone plan syncs to QuickBooks Online as well as Xero.

Is a photo of a receipt good enough for the ATO?

A clear digital copy is acceptable if it shows the information a tax invoice needs. For purchases over $82.50 including GST, you need a valid tax invoice to claim the GST credit.

Do I still need a bookkeeper if I use one of these apps?

The apps capture and extract documents. Someone still needs to set up rules, review coding, reconcile the bank and lodge the BAS.

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About Sydney Bookkeeper

Sydney Bookkeeper is a fixed-price Sydney bookkeeper for businesses with staff: monthly bookkeeping, BAS lodgement, payroll and Xero clean-ups, with no lock-in.

Monthly bookkeeping | Books catch-up | Free Xero Roast

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Legal

The team uses a registered BAS Agent for all BAS and IAS lodgement services. Registration details are available on request. This content is general information only. It is not tax, financial product or legal advice. Information was current at publication and may change. Sydney Bookkeeper has no commercial relationship with Dext, Hubdoc or Xero beyond using their products.

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Sources

• ATO, When you can claim a GST credit: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit
• ATO, GST records: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/detailed-business-record-keeping-requirements/running-your-business-records/business-activity-statement-records/gst-records
• Dext, AU business pricing: https://dext.com/au/business/pricing
• Dext, Dext vs Hubdoc: https://dext.com/au/resources/compare/dext-vs-hubdoc
• Hubdoc, Pricing: https://www.hubdoc.com/pricing
• Xero, Partner and business plans for Australia (Hubdoc inclusion): https://brandfolder.xero.com/8HSCTPAX/as/bmq67j2h9x7j7hn3mgwcvbk/New_AB_partner_and_business_pricing_plans_overview
• Xero AU, Smart Document Capture: https://www.xero.com/au/accounting-software/store-files/
• Xero Blog, Smart document capture (AU/NZ beta): https://blog.xero.com/product-updates/smart-document-capture/
• Xero ASX announcement, Xero acquires Hubdoc (1 August 2018): https://announcements.asx.com.au/asxpdf/20180801/pdf/43wzn9dc6s54rv.pdf

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