The problem
A plumber picks up parts from merchants most days, and the paper receipts end up in the door pocket. If 3 receipts a month at $160£120€143A$230C$226 go missing, a VAT-registered business can't reclaim the VAT on them: $27£20€24A$38C$38 each, $80£60€71A$115C$113 a month. Typing up the other 60 or so receipts takes about 3 minutes each, 3 hours a month.
What the AI does
Dext captures receipts and supplier invoices from a phone photo, email or WhatsApp, reads the details and sends them to accounting software such as Xero for you to approve. Merchants that email invoices can send them straight to Dext. The receipt is filed the moment you take the picture, so nothing depends on finding it in the van in January.
A worked example
A VAT-registered plumber in Southampton, already on Xero, buys from merchants about 60 times a month. They sign up for Dext ($40£30€36A$58C$56 a month excluding VAT on monthly billing, for 250 documents and 5 users) and photograph every receipt before leaving the counter.
Before
About 3 receipts a month lost, and 3 hours a month typing up the rest
After
Receipts filed at the counter, with about 1 hour a month checking and approving
What it's worth
About $173£130€155A$250C$244 a month saved: $80£60€71A$115C$113 of VAT no longer lost on 3 missing receipts, plus 2 hours of typing at $47£35€42A$67C$66 an hour ($93£70€83A$134C$132). That is against $40£30€36A$58C$56 a month for Dext on monthly billing, or $32.15£24.17€28.76A$46.41C$45.44 a month billed yearly.
How to set it up
- Check your accounting software connects to Dext; Xero does.
- Start Dext's 14-day free trial and set it to publish to your accounting software.
- Photograph every receipt at the counter, before it goes in the van.
- Give your regular merchants the email address Dext provides for invoices.
- Once a week, check and approve what Dext has read, especially the VAT amount.
What goes wrong
- Dext needs accounting software, priced separately. It reads and files documents; it doesn't replace your books.
- Monthly billing is $40£30€36A$58C$56. The yearly plan works out at $32.15£24.17€28.76A$46.41C$45.44 a month but is paid upfront ($386£290€345A$557C$545).
- Splitting one receipt into several cost codes needs line item extraction, an extra from $21.95£16.50€19.63A$31.68C$31.02 a month; the basic plan reads the totals.
- Ask your accountant how long to keep paper originals before you start throwing them away.