24 Jan 2026•11 min read

Which App Is Best for Tracking My Small Business Expenses?

The "best" expense app depends on your workflow: how many people submit expenses, whether you use cards or reimbursements, and what your accountant expects. This guide helps you pick the right type without overpaying for features you don't need.

TL;DR Answer

The best expense app is the one that matches your workflow: capture receipts quickly, enforce simple rules, approve spend (if needed), and keep records clean for VAT/tax and reimbursements. Receipt-only apps work for solo founders; card-first spend tools help when you need controls; accounting suites help when your accountant lives there. Use the tables and checklist below to pick the lightest setup that still gives you accurate records and visibility.

Q: What does "best expense app" mean for a small business?

A: "Best" means "best fit" for your specific situation. The right app depends on:

How many people submit expenses: Solo founder? 5-person team? 30 employees?
Reimbursements vs cards: Do employees pay out-of-pocket, use company cards, or both?
Approval needs: Do you need manager sign-off, or can expenses flow straight to accounting?
VAT/tax record quality: Are you VAT-registered? Do you need audit-ready records?
Accountant/bookkeeper expectations: What format do they need? Do they use a specific system?

A solo founder with 10 expenses per month has very different needs than a 20-person agency with client-coded project expenses.

Q: What records do we need to keep (UK baseline)?

A: UK record-keeping requirements set the baseline for what your expense system must support:

Employer expenses: GOV.UK requires employers to keep records of expenses and benefits provided to employees for tax and National Insurance purposes.
Self-employed records: GOV.UK states that self-employed individuals must keep records for at least 5 years after the 31 January submission deadline.
VAT records: VAT Notice 700/21 requires businesses to keep VAT records for at least 6 years.

Important: This is not legal advice. Confirm specific requirements with your accountant, especially for complex situations or multiple jurisdictions.

Q: What do the numbers say about expense admin waste and errors?

A: Manual expense processing is surprisingly costly:

GBTA research found that processing a single expense report can cost significantly more than most small businesses expect when you factor in employee time, approver time, and finance review.
Concur's research indicates that a meaningful percentage of expense reports contain errors, and correcting those errors adds additional cost and time per report.

For small teams, this translates to:

Admin hours lost chasing receipts and fixing errors
Delayed reimbursements (frustrating employees)
Messy books at month-end
VAT reclaim mistakes (costing real money)

Q: Why controls matter (even for small teams)

A: The ACFE (Association of Certified Fraud Examiners) estimates that organisations lose approximately 5% of revenue to fraud annually. While small businesses often feel "too small" for controls, the practical reality is:

Simple controls reduce leakage: Even basic approval workflows catch duplicate submissions and out-of-policy expenses.
Visibility prevents disputes: When everyone can see expense status, there's less "did you approve this?" confusion.
Clean records build trust: Investors, auditors, and acquirers all expect expense controls.

You don't need enterprise-grade compliance — but basic approvals and audit trails are worth having.

Q: Comparison table — expense app types compared

A: Different app types solve different problems. Choose based on your workflow:

App type	What it does best	Pros	Cons	Best for	Watch-outs
Receipt capture + reimbursements	Mobile receipt capture; reimbursement tracking	Fast capture; OCR; simple approval	No card controls; relies on reimbursement	Teams reimbursing employees	Per-user pricing can scale
Card-first spend management	Corporate cards + spend controls	Real-time visibility; limits; merchant controls	Requires cards; setup complexity	Teams wanting proactive controls	Card fees; minimum spend; credit check
Accounting suite with expenses	Expenses inside full accounting platform	Single system; accountant-ready	Expense UX often secondary; more to learn	Teams where accountant runs everything	May pay for accounting you don't need
Bookkeeping capture tools	Receipt capture + data extraction for accountants	Strong OCR; accountant-friendly exports	Often accountant-led; less employee self-service	Accountant-managed workflows	May require accountant involvement
Lightweight integrated ops	Expenses + approvals + invoicing + leave management	Consolidation; one approval workflow; flat pricing	Less deep in any one area	Small teams wanting simple consolidation	May lack specialist features

Q: What features should we prioritise (and what can we skip)?

A: Not all features matter equally. Here's how to prioritise:

Feature	Why it matters	Minimum acceptable	Evidence to look for	Notes
Receipt capture	Reduces lost receipts; speeds submission	Mobile camera capture	Demo the mobile app	OCR quality varies
Categorisation	Clean books; easier reporting	Predefined categories; manual override	Category list; auto-suggest demo	Match your chart of accounts
Export/reporting	Month-end; accountant handoff	CSV/Excel export; date filters	Sample export file	Check format with accountant
Audit trail	Compliance; dispute resolution	Edit history; timestamps	Audit log screenshot	Critical for VAT
Reimbursement tracking	Clear status; no "did I get paid?" confusion	Status field (submitted/approved/paid)	Workflow demo	If you reimburse
Approval workflows	Control; accountability	Single-step approval	Approval flow demo	Nice-to-have for solo
Project/client coding	Profitability tracking; client billing	Custom tags per expense	Tag/project field demo	Critical for agencies
Integrations	Reduce double-entry; sync with accounting	Export; basic API or Zapier	Integration docs	Nice-to-have initially

Must-have for most small businesses:

Receipt capture (mobile)
Categorisation (basic)
Export (CSV/Excel)
Audit trail of edits
Reimbursement tracking OR card reconciliation

Nice-to-have (add when needed):

Approval workflows
Policy rules (limits, categories)
Mileage tracking
Per-project/client coding
Accounting integrations

Q: Scenario shortlist — which type fits you best?

A: Match your scenario to the right app type:

Your scenario	Best-fit app type	Examples to consider (verify)	Why it fits	Watch-outs
Solo founder (rare reimbursements)	Receipt capture or spreadsheet	Expensify, Wave (verify current features)	Simple; low volume; no approvals needed	May outgrow quickly
2–10 team (monthly reimbursements)	Receipt capture + approvals	Expensify, Zoho Expense, Zotrack (verify)	Simple workflow; mobile capture; basic approval	Per-user pricing can scale
Company cards (want controls)	Card-first spend management	Pleo, Soldo, Spendesk (verify)	Real-time controls; limits; visibility	Card fees; minimum spend requirements
Agency (client/project tagging)	Receipt capture with project coding	Expensify, FreshBooks, Zotrack (verify)	Expense-to-project linking; client billing	Verify project/client field support
VAT-registered (strict records)	Any with strong audit trail	Dext, Xero Expenses, QuickBooks (verify)	6-year retention; VAT field capture; exports	Verify VAT field handling
Accountant-led (specific exports)	Bookkeeping capture OR accounting suite	Dext, Receipt Bank, Xero (verify)	Accountant-friendly formats; strong OCR	Ask your accountant first

Note: App examples are provided as starting points for research. Features and pricing vary by plan and change over time. Always verify current capabilities on official vendor pages.

Quick Pick (60 seconds) — decision rules

If you just need receipt capture + simple reimbursements → Receipt capture apps (Expensify, similar)
If you need spend controls at point of purchase → Card-first spend management (Pleo, Soldo, similar)
If your accountant runs everything in an accounting suite → Accounting suite expenses (Xero, QuickBooks, similar)
If you want expenses + approvals + invoicing in one place → Lightweight integrated ops (e.g., Zotrack — flat-fee, includes expenses)

Decision Checklist (copy/paste) — choose in 15 minutes

List who submits expenses: Count of people and frequency.
Decide reimbursements vs company cards vs both: How does money flow?
Decide approval needs: None / manager / finance review?
Define receipt rules: Threshold for receipts; itemised vs card slips.
Define categories + coding: Do you need project/client tags?
Define VAT needs: If registered, document VAT field requirements.
Define export/report needs: What does your accountant need monthly?
Define retention expectations: Where do receipts live and for how long?
Pilot: Run 10 real expenses end-to-end before committing.
Measure: Time per submission, error rate, reimbursement cycle time.

Q: Spreadsheet vs app — where errors creep in (and how to reduce them)

A: Spreadsheets can work for very small volumes, but error risk increases with complexity. Research by Panko found that spreadsheets contain errors in one percent or more of all formula cells. The Dartmouth literature review similarly documents that errors are prevalent and risks are often under-recognised.

For expense tracking, this means:

Totals may be wrong (formula errors)
Categories may be inconsistent (no validation)
Receipts may be missing (no enforcement)
No audit trail (who changed what?)

If staying with a spreadsheet, minimum controls:

Single owner responsible for accuracy
Locked formula cells
Change log (who edited, when)
Monthly audit (compare receipts to entries)

Q: Before vs after — what changes when you use an expense app?

A: Here are measurable outcomes when teams move from ad-hoc to app-based expense tracking:

Scenario	Before (manual/spreadsheet)	After (app workflow)	Outcome
Reimbursement cycle	2–4 weeks (end of month batch)	3–7 days (approve → pay)	Happier employees; better cash flow visibility
Missing receipts	10–20% at month-end	<5% (captured at point of purchase)	Cleaner books; fewer VAT issues
Coding errors	Frequent (wrong category, missing project)	Rare (dropdown validation; auto-suggest)	Accurate reporting; easier reconciliation
Month-end admin	2–4 hours chasing and fixing	30 minutes (export and review)	70%+ time saved
Policy compliance	"Did you really spend £200 on that?"	Flagged at submission (over limit)	Fewer disputes; clearer expectations

Q: Failure points & fixes (what breaks first)

A: Common failure points and how to address them:

Failure point	Why it happens	Fix this week	What to document
Missing receipts	Delayed submission; lost paper	Require photo at point of purchase	Policy: submit within 48 hours
Duplicates	Same receipt submitted twice	Use app with duplicate detection	Monthly audit for duplicates
Late submissions	No deadline; no reminders	Set monthly cutoff (e.g., 5th)	Policy: cutoff date + consequences
Unclear categories	Too many options; no guidance	Simplify to 10–15 categories max	Category guide with examples
Slow approvals	Approver bottleneck; no backup	Set backup approver; auto-escalate	Policy: approve within 48 hours

Q: A data-backed PR angle (credible, not salesy)

A: If you're writing about expense management for press or content, here are factual anchor points:

Fraud risk: ACFE estimates organisations lose approximately 5% of revenue to fraud annually. Simple controls reduce this.
Processing cost: GBTA and Concur research shows that processing expense reports involves meaningful cost per report, and errors add additional correction time.
VAT retention: VAT Notice 700/21 requires businesses to keep VAT records for at least 6 years — expense records are part of this.

"Clean expense records aren't just about tax compliance — they're about knowing where money goes, catching problems early, and keeping your accountant happy."

Q: FAQ

1) Do I need an app if I am a sole trader?

Not necessarily. If you have fewer than 10 expenses per month and no VAT complexity, a simple spreadsheet or folder of receipts may work. Upgrade when you hit 20+ expenses per month, need VAT audit trails, or want to reduce month-end admin.

2) What is the simplest setup for a 2–10 person team?

A receipt capture app with basic approval workflow. Everyone submits via mobile, one person approves, and you export monthly for your accountant. Look for automatic categorisation and simple reporting.

3) Are company cards better than reimbursements?

Depends on your team. Cards give real-time visibility and reduce reimbursement admin. Reimbursements work better for occasional expenses or when employees prefer using personal cards. Many teams use both.

4) What should I store with each expense for VAT/tax?

Store: receipt image, date, amount, VAT amount (if applicable), supplier name, and business purpose. For VAT, keep records for at least 6 years. Digital receipts are acceptable if they are clear and complete.

5) How do approvals work without slowing the team down?

Use mobile notifications so approvers can act quickly. Auto-approve under a threshold (e.g., under £50). Set backup approvers for when managers are away. Target approval within 24–48 hours.

6) How do I pilot an expense app before committing?

Run 10 real expenses through the system. Test: submission, receipt capture, categorisation, approval (if needed), export. Measure time per expense and check the export format works for your accountant.

A simpler option if you want expenses + approvals + invoicing together

For small teams that want expense tracking, approvals, and invoicing in one place without per-seat pricing, Zotrack offers a flat-fee model. Check our transparent pricing to see if it fits your workflow.

References

Last updated: 24 Jan 2026