Dext vs Hubdoc: Which Tool Is Right for Your Accounting Needs?

Anitra Issa

Accurate and organised bookkeeping is an essential part of operating a business. Luckily for you, modern accounting software has made the process easier and faster than ever. If you’re using Xero, MYOB, or QuickBooks already, you can enhance their functionality with plugins. Two of the big ones are Hubdoc and Dext. They are both designed to simplify the way you manage financial documents, saving you time and improving accuracy. But when it comes to choosing between Dext vs Hubdoc, how do you know which one suits your business needs better?

Both Hubdoc and Dext are popular among business professionals and offer their own unique strengths. In this guide, we’ll explore how Hubdoc and Dext compare, breaking down their features, advantages, and potential drawbacks to help you decide which one is the best choice for you.

What Are Hubdoc and Dext?

Hubdoc and Dext are software tools that integrate with most popular accounting software on the market. They allow you to digitise and organise financial documents by enabling you to scan, upload, and extract data from invoices, receipts, and bills. While both tools serve a similar purpose, they do have slightly different functionality and user experience. When choosing between Hubdoc and Dext, you should consider factors like transaction volume, data accuracy, and integration preferences.

Want to learn more about Hubdoc and Dext individually? Read our deep-dive blogs where we explore them:

This screenshot shows the Hubdoc uploads screen. You can connect Hubdoc to Xero, QuickBooks, Bill.com or ShareFile. You can upload documents via desktop or using the mobile app. Learn more on the Hubdoc website.

The Pros of Hubdoc

Hubdoc is included free with a Xero subscription, which makes it an attractive option for businesses already using Xero. This eliminates the need for additional software expenses, especially for small businesses or those with minimal document processing needs.
Hubdoc integrates seamlessly with Xero, automatically matching documents to transactions and attaching them to relevant entries in the ledger. This streamlines the process of maintaining accurate records for audits or compliance.
For businesses with only a few invoices or bills to process each month, Hubdoc provides sufficient functionality. The time saved by automating data entry offsets any minor issues with its accuracy, making it a practical choice for smaller operations.
Hubdoc is able to automatically detect when you may be trying to upload the same thing twice. It will come up with a “Potential Duplicate” warning that you can check before it will upload to Xero.

The Cons of Hubdoc

One of the most common complaints about Hubdoc is its inconsistency in data capture. When you upload scanned images (for example, a photo of a receipt in JPG format), there can be errors in extracting details like invoice numbers, dates, or amounts. This can lead to additional manual checks, which may negate the time-saving benefits. However, if you upload your documents in PDF form, then it is unlikely that you will have any errors.
If your business processes a large number of transactions, Hubdoc may not be the best tool for you.

This screenshot shows the Dext uploads screen. You can upload documents via desktop or using the Dext App. Learn more on the Dext website.

If you want personalised support with Xero, our experienced and certified Xero bookkeepers can help. Give us a call at 1300 728 875 or fill out a contact form to get started.

The Pros of Dext

Dext is widely recognised for its accuracy in capturing data. It reliably extracts key details such as invoice numbers, due dates, and tax amounts with minimal errors. This makes it a preferred choice for businesses that require really precise record-keeping.
For businesses managing a large number of invoices and bills each month, Dext offers better scalability. Its ability to process bulk transactions efficiently makes it a time-saver for larger organisations or those with complex financial needs.
Dext offers additional features like expense categorisation, customisable reporting, and multi-user access. These capabilities make it a versatile tool for accountants and bookkeepers managing multiple clients or businesses with diverse requirements.

The Cons of Dext

Unlike Hubdoc, Dext is not included in a Xero subscription. This means businesses need to budget for an additional expense. While its features justify the cost for many, small businesses with limited budgets may find it less appealing.
Dext’s extensive features can feel overwhelming for first-time users. While it offers excellent functionality, mastering its full potential may take time and training.

Hubdoc vs Dext: How to Determine Which One is Right For You

If your business already uses Xero and processes a small number of transactions each month, Hubdoc is likely the best fit. Its cost-effectiveness and integration with Xero make it a simple and practical solution.
For businesses where data accuracy is critical (such as those with tight compliance requirements) Dext is the better choice. Its reliable data extraction reduces the risk of errors and the need for manual intervention.
If your business handles a high volume of invoices, bills, or receipts, Dext’s scalability and efficiency make it the ideal tool. Its advanced features and bulk processing capabilities can save significant time.
If keeping costs low is your priority, Hubdoc’s inclusion in a Xero subscription is a compelling advantage. However, you’ll need to weigh this against the potential time spent on correcting data capture errors.

Dext vs Hubdoc: A Feature Comparison

Feature	Hubdoc	Dext
Cost	Free with Xero	Paid subscription
Data Accuracy	Moderate	High
Ease of Use	Beginner-friendly	Advanced features
Integration	Best with Xero	Xero, QuickBooks, MYOB
Transaction Volume	Low to moderate	Moderate to high
Advanced Features	Limited	Extensive

Tips for Making the Right Choice

Consider how many transactions you process each month and whether data accuracy is critical for your operations.
If cost is a deciding factor, Hubdoc’s inclusion with Xero makes it an affordable option for small businesses.
If your business is growing or handling more transactions, investing in Dext may pay off in the long run.

If you have the time to do so, you always have the option to trial both Hubdoc and Dext to determine which one aligns more effectively with your unique workflow. Testing each one gives you the chance to see how well they integrate with your existing systems and how effectively they meet your document management needs.

Final Thoughts on Dext vs Hubdoc

Both Hubdoc and Dext are great choices when you need a tool for document management and accounting. While Hubdoc’s cost-effectiveness makes it a popular choice for Xero users, Dext’s superior accuracy and scalability can make up for the cost to businesses with more demanding needs.

By understanding your transaction volume, budget, and priorities, you can choose the tool that best supports your accounting processes. Take the time to assess your needs and decide which tool aligns with your workflow. With the right choice, you’ll save time, improve accuracy, and streamline your bookkeeping process.

If you’re still unsure or need some guidance on accounting software in general, don’t hesitate to reach out to our team at Darcy Bookkeeping. Fill out a contact form or give us a call on 1300 728 875.