What is one of the first steps to set up Xero Expenses?

Enabling Xero Expenses and adding expense accounts is a foundational step in the setup process for Xero Expenses. This action ensures that the system is properly configured to manage employee expense claims and allows for accurate tracking and categorization of expenses. By enabling these features, you are establishing the infrastructure needed to process expenses, making it easier to manage financial reporting and control.

When you add expense accounts, you're also setting the stage for how expenses will be recorded in your accounting system, which is crucial for maintaining organized financial records. This step directly impacts how expenses are categorized and reported, making it vital for effective expense management.

Although options such as training employees, setting up bank transactions, and creating a company policy for expenses are important, they typically follow the initial technical steps of enabling the system and setting up accounts, which is why focusing on enabling Xero Expenses is essential for a successful implementation.