Melio, a Xero company, has launched Melio Expense Management for small and midsize businesses.
The launch extends the range of financial products Melio offers to SMBs and follows the company's integration into Xero's ecosystem.
According to the company, the developments in AI are changing how small businesses manage financial operations, and Melio Expense Management is designed to reduce the manual work involved in receipt collection and expense categorisation. The tool automates these processes and synchronises expense data with a business's existing accounting software, alongside bills and payments already managed through Melio's platform.
Unlike tools that require businesses to adopt a new card, Melio Expense Management is built to work with cards businesses already use. The company stated that approximately 90% of its small business users currently pay expenses with their own business cards, and the new tool allows them to continue using those cards, including any associated rewards or cashback programmes.
When a cardholder makes a purchase, they receive an SMS or email prompting them to submit a receipt. The user photographs the receipt and uploads it directly, without downloading a separate application or creating an additional account. Melio then extracts the relevant transaction details, categorises the expense, and syncs the information with the customer's accounting software.
Matan Bar, CEO of Melio, said the update responds to a recurring request from accountants for expenses and accounts payable to be managed within a single system, adding that the tool is intended to let clients retain their preferred card and ledger while giving accountants automation and oversight.
Timing and industry context
The product forms part of a broader trend among financial operations platforms to consolidate expense management, accounts payable, and accounting software into unified systems, reducing the need for SMBs to manage multiple disconnected tools during financial close processes.
At the same time, the launch reflects continued expansion of Melio's product suite following its acquisition by Xero, positioning the company to serve accountants and SMBs who require integrated tracking of both expenses and payments within a single workflow.
