Dext is a powerful digital tool designed to simplify bookkeeping and automate the way financial documents are managed. By using advanced data extraction technology, it captures key information from receipts, invoices, and other documents before publishing it directly to your accounting software, such as Xero.
This automation removes the need for manual data entry, improves accuracy, and ensures that every transaction is recorded efficiently. For accountants and business owners alike, Dext provides real-time visibility and control over financial data, making it an essential part of a modern, technology-driven accounting process.
What is Dext?
Dext is a service used to help automate accountancy tasks such as managing financial documents like receipts and invoices. It does this using Optical Character Recognition (OCR), this allows Dext to capture important information such as dates & amounts from invoices and other documents sent to it.
Once processed, this information is reviewed and published to your accounting software, like Xero, allowing you to maintain accurate financial records without the need for manual data entry. Dext was formerly known as Receipt Bank and is now one of the leading automation tools used by accountants and businesses worldwide.
Why use Dext?
Dext simplifies your financial workflow with a combination of user-friendly design and powerful automation. Here’s how it helps your business:
Highly Accurate Data Extraction: Dext uses advanced technology to extract invoice data with exceptional accuracy, minimizing human error. This is particularly beneficial for businesses that process a large volume of documents from multiple suppliers, ensuring high-quality data for reconciliation.
Essential Accounting Integration: Dext seamlessly connects with popular accounting platforms such as Xero and QuickBooks. This integration is crucial for identifying and flagging missing invoices or receipts, streamlining your reconciliation practices.
Mobile Accessibility: The Dext app allows you to upload receipts and invoices directly from your phone. This on-the-go functionality ensures that your and your employees expenses are captured and published to your accounting system in real-time, no matter your location.
Submitting Documents & Files: There are three main ways to submit documents to Dext:
- Mobile App: Take a photo of your receipt or invoice and upload it instantly.
- Email-In: Forward supplier invoices to your unique Dext email address for automatic processing.
- Desktop Upload: Drag and drop files from your computer or use Dext’s folder sync feature for batch uploads.
Dext can handle different file types including : JPG, PNG, GIF, BMP, TIFF, HTML, PDF, DOC, DOCX, ODT, RTF. This allows for many documents from online sources such as invoices / bank statements to be analysed.
Currencies & Tax Rates: Dext can handle Multiple Tax Rates as well as being able to convert foreign currency into your base currency using conversion rates from the day that item is dated. Great for global operations and businesses that go further afield.
How Dext fits into your accounting process
Dext sits between your day-to-day bookkeeping and your accounting software. The process typically looks like this:
Upload → Extract → Review → Publish → Reconcile.
This ensures all your financial documents are captured, reviewed for accuracy, and published to the correct accounts within your accounting platform.
Reviewing and publishing items
Before items are published to your accounting system, Dext allows you to review each entry. You can check that the supplier, description, category, and VAT rate are correct, and add notes or allocate costs to specific projects. Over time, Dext learns from your behaviour and begins to suggest the correct category or tax rate automatically.
Using Dext for VAT and compliance
Dext plays an important role in maintaining VAT compliance. It captures valid VAT invoices and flags those that may be missing required details such as a VAT registration number or tax breakdown. All documents uploaded are securely stored in the cloud for at least six years, meeting HMRC’s record-keeping requirements.
Multi-user and approval workflows
For businesses with multiple employees submitting expenses, Dext can be configured so that each person uploads receipts via the mobile app or email-in address. Managers or finance staff can then review and approve these before publishing them to the accounts. This creates a simple and reliable internal control process for expenses.
Integrations and ecosystem
Beyond Xero and QuickBooks, Dext also integrates with accounting platforms such as FreeAgent and Sage. It can connect to cloud storage tools like Dropbox and Google Drive for backup and document management. This ecosystem of integrations ensures that data flows smoothly between systems, reducing admin and errors.
How Ascentis Accountants use Dext
At Ascentis Accountants, Dext forms an integral part of our technology-driven approach to accounting. We use it to provide clients with real-time visibility over their financial position, improve accuracy, and save valuable time across their bookkeeping processes.
In our Providing Transparency with Dext case study, we helped a client move from manual paperwork to a digital receipt and invoice capture system. By introducing Dext, they gained greater control over expenditure and a clear audit trail that allowed us to produce more accurate management accounts each month.
In another example, detailed in Financial Clarity for Decision Making, Dext was key to improving data accuracy and streamlining the reconciliation process. With Dext feeding directly into Xero, the client gained faster access to key performance data, allowing for more confident decision-making and a stronger understanding of cash flow.
Finally, in Transitioning from Paper to Xero Online Accounting, we worked with a business that was heavily reliant on paper-based processes. By implementing Dext alongside Xero, we created a seamless digital accounting ecosystem where invoices, receipts, and statements were captured automatically, reducing manual errors and freeing up time for strategic planning.
When integrated and monitored properly, Dext can be a foundation for better financial clarity and collaboration between client and accountant.
If you need help with this, or with other advice, then please get in touch with our accounting team.