Best Expense Management Software for Small Business in 2024

Expense management software for small businesses are used for automating payments, auditing employee-initiated expenses, and reporting on different business operations. Expenses are set in compliance with internal/external policies and governance laws, encompassing all online technologies used to process and review data on corporate degrees. Its programs can command authorizations or handle expense claims, audit, and repayment. The system typically comprises purchasing a license and imposing a program importing data from outside sources. In this guide, you will learn how to carry out knowledgeable comparisons to select the best expense management tools for your small business.

There is no other way to find out which expense management software for small business best suits your organization than to sign up for free trials, demos, or basic unpaid subscriptions from leading expense management software providers. In this way, you will be provided with the opportunity to assess crucial features. You will also identify what each tool is capable of. Check out our expense management software reviews and have a look at the ones that presently enjoy the highest rankings in our SmartScore and Customer Satisfaction Rating. We have reviewed FreshBooks, QuickBooks Online, Gusto, Sage Business Cloud Accounting, and Sage HR. 

If you wish to save time and focus on more pressing matters of your small business, try controlling your expenses online. Listed below are some situations where a reliable expense management software for small business would be of great help.

• Small-sized businesses aiming to provide accurate reporting. Regardless of size, small businesses are still expected to provide accurate reporting; hence, they must take note software that have strong report systems and mobile features.
• Freelance workers who must automate their expense management. Outsourcing the administrative tasks of freelancers to digital tools is the best and only way for them to perform their jobs well. Expense management is one major function that they can outsource.

• FreshBooks: One of the best cloud solutions for small business that streamlines tracking and invoicing. It allows you to collect payment online, and is packed with advanced analytics features.
• QuickBooks Online: Simple and very popular software for small businesses that are just beginning to manage accounts receivable. It checks invoices and purchase orders and eases business transactions.
• Gusto. An online HR services software that simplifies the intricate processes of payroll, benefits, and human resource management for small businesses.
• Sage Business Cloud Accounting: A cloud-based expense management tool, which also includes accounting and invoice management and compliance management solutions.
• Sage HR: A cloud-operated human resource software for small business that provides HR-related features, like recruitment, performance evaluation, expenses, and more.

Picking the best business expenses management software for your small business is not an easy task, and one of the reasons why is because of the variety of programs to consider. The scope is from the basic tools to extremely expensive and advanced programs. There are also programs aimed at only monitoring expenses, while others let users report and predict future expenses or perform tailored branding. The norm is distribution, hinging on which you can pick among:

• Cloud-hosted expense management systems. Most of these systems deliver free basic plans. They are recognized as the most inexpensive ones because of their universal access and updating them or maintenance fees are not required.
• Software-as-a-service (SaaS) expense management systems. These software are commonly paid monthly and are hosted on the vendor’s server. Its installation, updating, and maintenance are not your responsibility.
• On-premise expense management systems. These systems come with a license and are hosted on the client’s local server. They are deemed the most costly ones because of their sophisticated setup and occasional hardware installation.

Below are the major functionalities and capabilities of an expense management tool.

• Invoice Management. This setting helps you build strong relationships between customers and other partners. It also helps you use your resources more suitably.
• Receipt Management. The system saves all critical information and manual data importation is no longer needed when receipts are automatically uploaded to the system. This functionality apparently enables heavy customizations to match every brand.
• Expense Records. This functionality monitors and follows expenses, and places them in powerful databases that come with built-in search boxes. It helps you handle your resources well, even when retrieving them from your smartphone.
• Consolidating Expenses. Expense management software can consolidate expenses, tag them to any report, and classify them.
• Approval Feature Control. While the majority of expense management software enables multiple users, their access is strictly controlled and only the administrator can approve new data being entered into it.

Here are the benefits your small business can experience from using a high-quality expense management software:

• Using current savings for sound business decisions. Business decisions are only regarded as smart if they are backed by data. Expense management software helps centralize information, particularly managers when it comes to reporting on all necessary performance measures. The methodology is essential to establishing expense policies, calculating costs for projects, determining business opportunities, or meeting compliance requirements.
• Abiding by internal/external policies. Unwanted fees or damage to your business’s image is one huge consequence of ignoring regulations. Another important function of an expense management software is monitoring legislative changes instantly and updating the system information. At the same time, all parties are notified of the changes and informed on how such changes will impact performance figures.
• Fair and dependable expense tracking and handling. Humans always tend to lose track of fairness, especially once we become preoccupied with so many things at the same time. In expense management software, rules cannot be neglected and there are no exceptions. This kind of system allows automated approval and payoff, motivating both parties to act fast.
• Tax risk reduction. Expense management solutions do not leave room for errors in terms of data accuracy. Data is imported from corporate cards and service suppliers, which is an effective way of rationalizing expenses. Thus, these software know the difference between legitimate and illegitimate expenses, categorize them, and report on each expense claim correctly.
• Promoting cost-effectiveness. You will purchase the license and expand internal resources to impose it. You will be importing data automatically, and the system will be merged with credit cards and payment mediums. These are enough reasons to trust the correctness of your reports. Although reporting can be expensive and time-consuming, this system provides you with in-depth perspectives on expenditure. Based on such perspectives, you can talk about discounts, cut or reallocate funds, or change policies if needed.
• Adaptable risk responses and fraud mitigation. Expense management systems are the closest thing you can get to achieve a successful risk response. They can quickly redeem savings on a minimal implementation fee, meaning you won’t have to install new infrastructure but you will use what you presently have, with all the upgrades and maintenance alterations.

Watch out for the following trends in expense management and accounting:

• Outsourcing. Expense management is now being outsourced by companies to other firms and individuals. Others with huge operations are outsourcing them to experts and even freelance professionals.
• Data Analytics. Analytics give feedback on how the industry can enhance processes. As more companies will require this, more software providers will also innovate their analytics.
• Artificial Intelligence. More robust and more effective AI will be integrated into future products. These products will feature smart databases that link bank details, connect duplicate entries, and more. AI will also provide useful insights backed by analytics.

Using an expense management software does not just provide convenience to your small business, it also streamlines your operations and generates more revenue. Therefore, you should see this software as an investment instead of another expense. Take care of this investment and grow it.

When choosing the best one, keep in mind that there will more to it than just tracking your expenses. There will also be pain points to account for upon their integration with your business. But you will see that all of these will be worth it when you see how your business evolves along the way.