24 Jan 2026•10 min read

Can You Recommend an Expense Report App for Small Businesses?

The right expense report app depends on how your team handles spend: reimbursements vs cards, simple capture vs full workflows, and what your accountant expects. This guide helps you pick the lightest option that still works.

TL;DR Answer

The best expense report app depends on how your team spends money: reimbursements vs company cards, whether you need approvals, and how strict your VAT/tax record-keeping must be. Reimbursements-first apps work well for small teams submitting monthly claims; card-first spend tools help when you need controls at purchase time. Use the tables and checklist below to pick the lightest option that still gives you clean records and fast month-end.

Q: What counts as an "expense report app" (and what it's not)?

A: An expense report app handles the full workflow of business expenses:

Capture: Photograph or upload receipt
Categorise: Assign expense type, project/client (if needed)
Policy check: Flag out-of-policy or unusual expenses
Approval: Route to manager or finance for sign-off
Reimbursement: Track what's owed and what's paid
Export/accounting: Package for your accountant or sync to accounting software

Different from:

Receipt storage app: Just stores photos — no workflow, no approval, no reimbursement tracking.
Card-spend control tool: Focuses on controls at purchase (limits, categories) rather than post-purchase reports.
Full accounting software: Includes expenses but designed for bookkeeping, not expense workflows.

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

A: UK record-keeping requirements set the baseline for what your expense app 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 involves meaningful cost when you factor in employee submission time, approver time, and finance review.
Concur's research indicates that a significant percentage of expense reports contain errors, and correcting those errors adds additional cost and time per report.

For small teams, this translates to:

Hours lost chasing receipts at month-end
Delayed reimbursements frustrating employees
Coding errors creating reconciliation headaches
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 approvals catch mistakes: Duplicates, wrong categories, out-of-policy claims get flagged before they hit the books.
Visibility reduces disputes: When everyone sees expense status, there's less "did you approve this?" confusion.
Audit trails build trust: Timestamped records show who submitted, approved, and paid what.

You don't need enterprise-grade compliance — but a basic approval flow makes a difference. This also ties into broader team visibility across leave management and approvals.

Q: Comparison table — expense report app types compared

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

App type	What it does best	Pros	Cons	Best for	Watch-outs
Reimbursements-first	Expense report workflow: capture → approve → reimburse	Clear reimbursement status; approval chain; mobile capture	No card controls; focused on post-purchase	Teams reimbursing employees	Per-user pricing can scale
Receipt capture + bookkeeping pack	OCR + accountant-ready exports	Strong OCR; accountant-friendly formats	Often accountant-led; less employee self-service	Accountant-managed workflows	May require accountant involvement
Card-first spend management	Corporate cards + controls + visibility	Real-time visibility; limits; merchant controls	Requires cards; setup complexity	Teams wanting proactive controls	Card fees; minimum spend; credit check
Accounting suite expenses	Expenses inside full accounting platform	Single system; accountant-ready	Expense UX often secondary; learning curve	Accountant-led teams	May pay for accounting you don't need
Lightweight integrated ops	Expenses + approvals + invoicing + leave	Consolidation; one approval workflow; flat pricing	Less deep in any single area	Small teams wanting simplicity	May lack specialist features

Q: Feature checklist — what to prioritise vs what to 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	VAT evidence; reduces lost receipts	Mobile camera capture	Demo the mobile app	OCR quality varies
Mileage tracking	Accurate travel reimbursements	Distance entry; rate calculation	Mileage entry demo	Nice-to-have for desk-based teams
Per diem	Simplifies travel expense claims	Daily rate by location	Per diem setup demo	Nice-to-have unless frequent travel
Policy rules	Auto-flag out-of-policy claims	Spending limits; category rules	Policy setup demo	Nice-to-have for small teams
Approvals	Control; accountability; audit trail	Single-step approval	Approval workflow demo	Essential for 2+ submitters
Reimbursement tracking	Clear status; no "did I get paid?" questions	Status field (pending/approved/paid)	Workflow demo	Essential if you reimburse
Audit trail	Compliance; dispute resolution	Edit history; timestamps	Audit log screenshot	Critical for VAT
Export formats	Month-end; accountant handoff	CSV/Excel export	Sample export file	Check format with accountant
VAT fields	VAT reclaim accuracy	VAT amount field on expenses	Sample export with VAT	Critical if VAT-registered
Integrations	Reduce double-entry	Export; basic API or Zapier	Integration docs	Nice-to-have initially
Mobile UX	Adoption; capture at purchase	Native app; fast capture	App store reviews	Test with actual users
Duplicate detection	Prevents double-claims	Flag same receipt submitted twice	Feature demo	Nice-to-have

Must-have for most small teams:

Receipt capture (mobile)
Approvals (if more than one submitter)
Export (CSV/Excel for accountant)
Audit trail (edit history, timestamps)
Reimbursement status tracking

Nice-to-have (add when needed):

Mileage/per diem tracking
Policy rules (auto-flagging)
Duplicate detection
Multi-currency
Accounting integrations

Q: Scenario recommendations (best-fit shortlists)

A: Match your scenario to the right app type:

Your scenario	Best-fit app type	Example apps to consider (verify)	Why it fits	Watch-outs
Solo founder (rare reimbursements)	Receipt capture or spreadsheet	Expensify, Wave (verify features)	Simple; low volume; no approvals needed	May outgrow quickly with team
2–10 team (monthly claims)	Reimbursements-first	Expensify, Zoho Expense, Zotrack (verify)	Simple workflow; mobile capture; approvals	Per-user pricing can scale
Frequent travel (mileage heavy)	Reimbursements-first with mileage	Expensify, Concur (verify mileage)	Built-in mileage; per diem support	Verify mileage rate setup
Agency (project/client coding)	Reimbursements-first with project tags	Expensify, FreshBooks, Zotrack (verify)	Client/project tagging; billable flag	Verify project 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
Card-heavy spend (want controls)	Card-first spend management	Pleo, Soldo, Spendesk (verify)	Real-time controls; limits; visibility	Card fees; minimum spend

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 Picks (by scenario)

If reimbursements are your main problem → Reimbursements-first tools (Expensify, Zoho Expense, similar)
If you need accountant-ready "receipt packs" → Capture/bookkeeping pack tools (Dext, Receipt Bank, similar)
If you need controls at the point of purchase → Card-first spend tools (Pleo, Soldo, similar)
If you want expenses + approvals + invoicing together → Integrated ops (e.g., Zotrack — flat-fee, includes expense tracking)

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

Count submitters: How many people will submit expense reports?
Decide reimbursements vs cards vs both: How does team spend flow?
Decide approval flow: None / manager / finance review?
Define receipt rules: Threshold, itemised vs card slips, naming.
Define categories + coding: Do you need project/client tags?
Define VAT needs: If registered, document VAT field requirements.
Define exports: What monthly pack does your accountant need?
Define retention: Where do receipts live and for how long?
Pilot: Run 10 real expenses end-to-end before committing.
Measure: Time per report, 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?)

Minimum controls if staying with spreadsheets:

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 report app?

A: Here are measurable outcomes when teams move from manual to app-based expense reporting:

Scenario	Before (manual/spreadsheet)	After (expense app workflow)	Outcome
Reimbursement speed	2–4 weeks (end of month batch)	3–7 days (approve → pay)	Happier employees; better cash visibility
Missing receipts	10–20% at month-end	<5% (captured at purchase)	Cleaner books; fewer VAT issues
Coding errors	Frequent (wrong category, missing project)	Rare (dropdown validation; auto-suggest)	Accurate reporting; easier reconciliation
Month-end pack	2–4 hours compiling + chasing	15 minutes (export + review)	75%+ time saved
Audit readiness	Scramble to find receipts	One-click export with audit trail	Audit-ready in minutes

Q: Common failure points & fixes

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
Late submissions	No deadline; no reminders	Set monthly cutoff (e.g., 5th)	Policy: cutoff date + consequences
Duplicates	Same receipt submitted twice	Use app with duplicate detection	Monthly audit for duplicates
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
No audit trail	Edits not tracked; no timestamps	Use software with edit history	Monthly audit log review

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

A: If you're writing about expense reporting 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.

"The right expense app isn't about features — it's about matching your workflow: how many people submit, whether you reimburse or use cards, and what your accountant needs."

Q: FAQ

1) What's the simplest expense reporting setup for a small team?

A mobile receipt capture app with one approver and monthly export. Team members photograph receipts, submit claims, manager approves in batches, and you export to your accountant monthly. No complex workflows needed.

2) Do we need approvals for expense reports?

For solo founders: no. For teams of 2+: yes, at least a simple manager approval. Approvals create accountability, catch duplicates and out-of-policy claims, and provide an audit trail. Keep it simple: one approver is enough for most small teams.

3) Are company cards better than reimbursements?

Cards give real-time visibility and reduce reimbursement admin. Reimbursements work better for occasional expenses or when employees prefer personal cards. Many teams use both: cards for regular spend, reimbursements for exceptions.

4) What should we 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 we stop missing receipts and late submissions?

Require photo capture at point of purchase (not end of month). Set a firm submission deadline (e.g., 5th of the month). Use apps with reminders and flag expenses missing receipts. Make it easier to submit on the spot than to save for later.

6) How do we 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. Run in parallel with your existing process.

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 complexity, Zotrack offers a flat-fee model. Check our transparent pricing to see if it fits your workflow.

References

Last updated: 24 Jan 2026