How can you assign billable expenses to a customer in Xero?

To assign billable expenses to a customer in Xero, the correct method is through the bills section. When you enter a bill in Xero, there is an option to mark certain expenses as billable. This allows you to track costs associated with specific clients or projects accurately. By marking these expenses as billable, you can subsequently create invoices that automatically include these costs, ensuring that your customers are charged for the expenses incurred on their behalf.

This process enables better expense management and improves cash flow by ensuring that all relevant costs are appropriately billed to clients. Other sections like quotes, the dashboard, or reports are not designed for this specific task, which limits their ability to directly assign and manage billable expenses effectively. Therefore, utilizing the bills section is integral for correctly assigning expenses to customers in the Xero framework.