Xero Central outlines how to use the Xero Expenses App to process business expenses that were paid for personally. Here’s the link to those directions: https://central.xero.com/s/article/Manage-funds-in-and-out-of-your-business#Introducecashorrecorddrawings
The Expenses App is designed to use for Employees who are incurring expenses that need to be reimbursed. If it’s the director spending money personally, then probably they don't need an approvals process and so can do it a quicker way. Here’s the way I do it:
The Paid From Box will show your bank accounts, and possibly other accounts as well. The options will only include accounts that have been marked in Xero as able to accept payments. So if “Funds Introduced” is not showing, you will need to edit the GL account to enable it to accept payments. Go to Accounting / Chart of Accounts (it’s in the advanced area), and search for Funds Introduced. In the Default Chart of Accounts in Xero it’s 970 – Owner A Funds Introduced.
Edit the code and you will see a tick box at the bottom “Enable Payments to this account”. This box needs to be ticked (as shown here). Once the box is ticked, you will find the Funds Introduced account will appear as an option when you mark a Bill as paid.
I am a proud Platinum Xero Partner (only 2% of Xero Partners have achieved Platinum status) and work with businesses every day to help them get more out of Xero. If you need assistance with your business software and processes, get in touch here.