The Big Comparison: Dext vs AutoEntry vs Xero Document Capture
Last week we promised a full breakdown of the three document capture tools fighting for your practice's attention. Here it is.
With IRIS completing its acquisition of Dext in December, Xero launching native AI-powered document capture across UK accounts this month, and AutoEntry quietly offering the best value in the market — the landscape has shifted. If you haven't reviewed your document capture setup recently, now's the time.
We've compared all three on what actually matters to UK accountants: price, accuracy, integrations, and how much manual work they genuinely eliminate.
Dext (formerly Receipt Bank)
Best for: Medium to large practices with high-volume clients
Dext remains the market leader in accuracy, claiming 99.9% on line item extraction. If your clients regularly send batches of 100+ receipts and invoices, Dext's automation features — supplier rules, statement reconciliation, multi-currency OCR — justify the higher price tag.
The big news is the IRIS acquisition. Dext is now part of the same family as IRIS Elements (practice management, compliance, accounts production, tax returns). The promise is an integrated end-to-end platform, and early signs suggest they're delivering on it. A new AI Agent feature is in beta, learning from your workflows and suggesting automation opportunities.
Pricing: Practice plans from roughly £39/month (200 items, 5 users). Custom quotes for larger firms. Minimum 10-client commitment.
Integrations: Xero, Sage, QuickBooks, Zoho — 30+ in total.
Watch out for: Per-client pricing gets expensive for practices with many low-volume clients. The mobile app still can't publish non-expense transactions. Some users report inconsistent customer support.
Our take: If you process thousands of documents monthly across 10+ clients, Dext is hard to beat. The IRIS integration story is compelling for firms wanting fewer tools, not more.
AutoEntry (by Sage)
Best for: Small to medium practices wanting flexibility and value
AutoEntry is the quiet achiever. Its pay-per-document model means you only pay for what you process — no minimum client commitments, no long-term contracts, unlimited user accounts included.
A single credit covers one invoice or receipt. Line item extraction costs 2 credits. Bank statements cost 3 credits per page. Sage claims it's up to 60% cheaper than alternatives, and the maths checks out for most mid-size practices.
The supplier rules feature is genuinely useful: AutoEntry learns how you categorise documents and suggests accounts, nominal codes, and tax codes automatically. Over time, it essentially trains itself on your practice's preferences.
Pricing: Credit-based, pay-per-document. Included with Sage for Accountants (25 credits on signup). Rolling monthly subscription — cancel anytime.
Integrations: Xero, Sage, QuickBooks Online.
Watch out for: If you have a few clients with very high document volumes, the per-document costs can accumulate. Fewer advanced automation features than Dext. The integration list is shorter.
Our take: For practices with a mixed client base — some busy, some quiet — AutoEntry's flexibility is unmatched. No other tool lets you scale costs up and down this smoothly.
Xero's Built-In Capture (Hubdoc + New AI Features)
Best for: Sole practitioners and very small firms already on Xero
This is the one generating the most buzz right now. Xero announced native AI-powered document capture on 17 February, and it's rolling out to UK customers through March.
The pitch is simple: snap a photo of a receipt, upload it, and Xero's AI extracts the supplier name, date, amount, invoice number, and due date. No separate app, no extra cost — it's included with all Business Edition plans.
Here's the catch: it only extracts header-level information. No line items, no product descriptions, no per-line tax treatments. For a straightforward expense receipt, that's fine. For a multi-page supplier invoice with 40 line items? You're still doing manual work.
Hubdoc (Xero's existing capture tool) carries a 3.5-star rating in the Xero App Store — the lowest of any major capture tool. The new AI features improve things, but they're not yet a full replacement for dedicated tools.
Pricing: Included free with Xero Standard and Premium. The new Xero Simple plan (£7/month) includes Hubdoc for sole traders.
Integrations: Native to Xero only. If you also use Sage or QuickBooks for other clients, you'll need a separate tool anyway.
Watch out for: No line item extraction (yet). Doesn't handle handwritten receipts or manually completed invoices. Bank statements not supported. Bills integration coming April 2026 — receipts only for now.
Our take: Good enough for sole traders with simple expenses. Not ready to replace Dext or AutoEntry for practices with complex multi-line invoices. But free is free, and Xero's investment signals this will improve rapidly.
The Verdict: Which Should You Choose?
There's no single winner — it depends on your practice:
You're a sole practitioner on Xero? Start with Xero's native capture. It's free and handles simple receipts well. Upgrade to AutoEntry if you outgrow it.
You run a 2-10 person practice with mixed clients? AutoEntry gives you the best balance of price and capability. The pay-per-document model means quiet months are cheap months.
You manage a larger practice with high-volume clients? Dext's automation and accuracy justify the premium. The IRIS integration makes it even more compelling if you're already in their ecosystem.
Hybrid approach? Some firms use Dext for their top 10 busiest clients and AutoEntry or Xero's native tool for the rest. Nothing stops you mixing and matching.
MTD Update: 27 Days Until Go-Live
Making Tax Digital for Income Tax launches on 6 April for sole traders and landlords earning over £50,000. If you have clients in this bracket, here's your checklist:
- Ensure they're on MTD-compliant software (Xero, Sage, QuickBooks all qualify)
- Set up quarterly submission workflows — HMRC expects digital records and quarterly updates from day one
- Brief clients on what changes: no more annual self-assessment as their sole reporting mechanism
- Document capture becomes critical — quarterly submissions need complete, accurate transaction records
The £30,000 threshold follows in 2027, and £20,000 in 2028. This isn't going away.
Tool Review: Senta
Senta is a UK-built practice management platform that's been quietly gaining ground. At a fraction of the cost of Karbon or Ignition, it handles client management, task workflows, automated reminders, and document requests.
What sets Senta apart is its automation engine. You can build custom workflows that trigger emails, tasks, and follow-ups based on client events — think automatic MTD reminders 30 days before each quarterly deadline, or onboarding sequences that chase missing documents without you lifting a finger.
It won't win any design awards, but it's built by UK accountants for UK accountants, and it shows in the workflow templates and compliance features.
Starting price: From £32/month for the first user (£25.60/month on annual billing).
Best for: Small to medium UK practices wanting automation without the price tag of premium tools.
Practical Tip of the Week
Create a document capture comparison spreadsheet for your practice. Pick your 5 busiest clients and your 5 quietest. Calculate the monthly document volume for each. Then price out Dext, AutoEntry, and Xero's native tool for that exact mix. The "cheapest" option changes dramatically depending on your client profile — and you might find a hybrid approach saves you 30-40% over a single-tool commitment.
One Number
170,000 — The number of new clients Dext added globally in 2025. The document capture market is growing fast, and if your practice isn't automating receipt processing yet, your competitors almost certainly are.
What's Coming Next Week
- MTD countdown: your last-minute preparation guide for sole trader clients
- Tool review: Karbon — is the premium price worth it for workflow management?
- How to use AI to draft client communications in half the time
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