Guide
How to Manage Employee Expenses in 7 Steps
Seven steps to get employee expenses under control, when a spreadsheet is still enough, and five apps that take the admin off you, by situation.
Some links here are referral links, and where a provider gives our readers a better price than its own site, that is the price you get by using one. It costs you nothing extra, and every option here is judged on the same test either way.
You don't need software to get employee expenses under control. You need written rules first, because what you collect, who approves it and when people get paid all come from those rules.
Most guides on this come from companies that sell expense software, so they start with the software. We start with what a small business can set up this week for free, whether you have 2 people or 30. Later we'll show you the sums for when a tool saves you money, and when it doesn't.
Put the rules on one page
Cover what you'll pay for, the limits, receipts, deadlines, who approves and when people get paid. You're done when everyone who spends has a copy.
Pick the way people spend
Their own card, a company card or a prepaid card. You're done when each person knows which one they use.
Capture each receipt
A phone photo on the day of the purchase, saved in one place. You're done when every cost in your list has a picture behind it.
Name your approver
One person says yes or no within 3 working days. You're done when nobody approves their own spending.
Set your payback day
Approved claims go out on the same day each month or fortnight. You're done when people stop asking when they'll get their money.
File it for tax
Keep what your tax office asks for, for as long as it asks. You're done when you could find any receipt in a couple of minutes.
Review the month
Spend 30 minutes looking for doubles and odd claims. You're done when each odd claim has an answer.
Write down your expense rules
Start with one page. It only has to answer what people already ask you. What can they claim, and how much can they spend? Who approves it, how soon must they send the receipt, and when do they get their money back? Add one line on what happens if someone uses a company card by mistake, because that makes it easy for honest people to own up.
You don't have to write this from scratch or police it by hand, because expense apps hold these rules for you. Zoho Expense's Standard plan can hold several expense policies, so different teams can have different rules. Odoo automates approvals. So your rules live in the app, instead of in a document nobody opens.
What should the limits be? Look at the last three months of claims, then set each limit a little above what people normally spend. You can change them later.
Choose how your people spend
For most small teams, we'd let people use their own card and claim the money back, then give a company or prepaid card to whoever spends the most. The three options differ in who carries the cost until payday and how much control you get, so compare them before you hand out any cards.
Three ways people can spend
| Suits | Why it helps | Watch for | |
|---|---|---|---|
| Their own card, claimed back | A few small costs a month | Free to start | They lend you money until payday |
| Company card | Regular travel or online spending | You see costs as they happen | Full balance can fall due each cycle |
| Prepaid card | Set amounts for people out on jobs | Spending stops at the amount loaded | Your money sits on the card |
All three still need a receipt for every cost. A company card needs approval first, and prepaid fees differ by provider.← scroll sideways on a narrow screen →
What if someone can't afford to wait? Someone on a small salary shouldn't have to lend you money for a work trip. Give them an advance or a prepaid card for that trip, and ask for the receipts and any money left over when they get back.
What should you know before applying for a company card? Some card companies ask the owner for a personal guarantee, a promise to pay from your own money if the business can't. Our list of expense tools and company cards for startups shows who can get which card and what each one asks for.
Get a photo of every receipt on the day
Ask for a phone photo on the day of the purchase, because that's when the receipt is still in someone's hand. Printed slips fade, and a month-old cost is hard to explain. Save the photos in one shared folder, with the date, the person and the amount in each file name.
How do you track employee expenses without software? A shared spreadsheet with one row per cost does the job. Use these columns: date, person, shop, what it was for, amount, tax, link to the receipt, approved by, and paid on. Anyone can then see where their claim stands without having to ask you.
Can a photo replace the original receipt? Not automatically. In the US, the IRS says an electronic system has to store records in a readable form and meet the same rules as paper. Until you know what your tax office accepts, keep the originals of anything large.
Give one person the job of approving
Name one person to say yes or no to each claim, because a job that belongs to everyone tends not to get done. They only need to ask three things. Was it for work? Is it within the limit? Is the receipt there? If so, approve it. If not, send it back with one line saying why.
Who approves the owner's claims? Someone else should, even in a very small business, because the owner also wrote the rules. A co-owner can do it. If you don't have one, ask your bookkeeper to read through your claims once a month.
Pay people back on a fixed day
Pick one payday for expenses and keep to it, because people mind waiting less when they know the date. Once a month suits a team with small costs. Go to every two weeks if people put large amounts on their own cards, so nobody carries a big bill for long.
On your payday, pay everything approved so far, and fill in the "paid on" column the same day. That one column settles most arguments about whether someone has been paid.
Keep the records your tax office asks for
Keep each receipt and claim for as long as your tax office asks, so you can prove the cost was for work. The rules differ by country. This table shows how long to keep records, when you need a proper receipt, and the mileage rate each tax office sets for business driving.
Tax records in four countries
| Keep records | Receipts | Mileage rate | |
|---|---|---|---|
| US (IRS) | 3 years from filing | Needed from $75, always for hotels | 76 cents a mile |
| UK (HMRC) | 3 years, or 6 for company accounts | Simplified VAT invoice up to £250 | 55p a mile, 25p after 10,000 |
| Australia (ATO) | 5 years | Tax invoice above A$82.50 | 91 cents a km, up to 5,000 km |
| South Africa (SARS) | 5 years | Full tax invoice above R5 000 | 495 cents a km |
Mileage rates are the current ones for each country. How a rate is taxed when you pay it differs, so read your country's note below the table.← scroll sideways on a narrow screen →
Two rules catch people out. In the US, what you pay back stays out of wages under what the IRS calls an accountable plan. The cost must be for work, the employee must show what they spent, and any extra money goes back. In South Africa, you can't claim back VAT on business lunches or staff refreshments, even with a perfect invoice.
Where these come from: IRS Publication 463 and mileage rates. GOV.UK on expense records, company records and VAT invoices. The ATO on records, tax invoices and kilometres. SARS on tax invoices and kilometres.
These are the basics, and tax rules change. Your accountant should confirm what applies to your business.
Look over the month's claims for mistakes
Set aside 30 minutes each month and read your spreadsheet from top to bottom, while people still remember what each cost was for. These six things are worth stopping at, and each one has a simple next move.
The same amount and date twice
Usually a receipt sent twice, so pay it once.
Round amounts with no receipt
Ask for the receipt, or a note saying what it was for.
Claims just under the limit, again and again
The limit may be too low, or someone may be working around it.
Mileage that doesn't match the diary
Compare it with the person's calendar or job list.
A card subscription for someone who has left
Cancel it, and add subscriptions to your leaving checklist.
Anyone approving their own claim
Send it to your second approver.
Found something odd? Ask the person first, and give them room to explain. If the same thing keeps coming up with one person, read their last few months of claims before you raise it. That way you're talking about a pattern and not a single receipt.
When software starts to pay for itself
On our sums, software starts to pay for itself once people claim about twice a month each. Below that, a spreadsheet costs you less. This is our own working example and not a survey, so swap in your own numbers.
We assumed each claim takes 12 minutes by hand: 5 for the employee, 2 for the approver and 5 to enter it in your accounting software. We added an hour a month for chasing people, priced all that time at $25 an hour, and assumed a tool cuts it in half. The bill is Zoho Expense's Standard plan.
What doing it by hand costs a month
| Hours by hand | Cost by hand | A tool saves | Tool's bill | |
|---|---|---|---|---|
| 3 people, 4 claims each | 3.4 | $85 | $42.50 | $0 on the free plan |
| 10 people, 1 claim each | 3 | $75 | $37.50 | $40 |
| 10 people, 4 claims each | 9 | $225 | $112.50 | $40 |
| 30 people, 4 claims each | 25 | $625 | $312.50 | $120 |
Our working example, by our own sums. Each claim saves about $2.50 of time, so at $4 a user, the bill is covered at about two claims a person a month.← scroll sideways on a narrow screen →
When isn't it worth it? Look at the row with 10 people claiming once a month: $37.50 of time saved against a $40 bill. If your team rarely claims, stay with the spreadsheet. A tool also can't choose your limits for you, so write the policy first either way.
Past that point, we'd look at these five, each for a different situation. We recommend them because each takes a different job off your desk, and most let you try before you pay. For more options, see our lists of receipt scanner apps, Expensify alternatives and tools for startups.
If people claim often on their own cards
Zoho Expense is the closest match to the routine you've just set up, and you can try it without paying. Up to 3 people can use its free plan, and its paid plans come with a 14-day trial that needs no card. So run one month of real claims through it before you decide.
Zoho Expense
Zoho Expense reads receipts from a phone photo, sends each claim to an approver and passes approved costs to your accounting software.
If you're moving on from a spreadsheet: Zoho Expense
Zoho Expense is the easiest next step from a spreadsheet for a small team. People photograph a receipt and the app fills in the claim. It then goes to your approver and on to your accounting software. The free plan stops at 3 users and 20 scans each a month, so a fourth person moves you to Standard.
Where it stands out
- A free plan with mileage and accounting links
- Standard pays people back directly by bank
- No company card to apply for
Buy it if
- People claim at least twice a month each
- You want approvals out of your inbox
Skip it if
- People hardly ever claim
- Your bookkeeper wants supplier bills in the same place
Does a bookkeeper run your accounts?
Dext also takes supplier bills, and it costs more at a small size: $31.50 a month for up to 5 users.
If a bookkeeper runs your accounts
Dext suits you if most of the work falls on your bookkeeper, because it handles supplier bills as well as staff receipts and sends them to Xero or QuickBooks. It costs more than Zoho Expense at a small size. Even 3 people start on its smallest step, $31.50 a month for 5 users and 250 documents. Its 14-day trial needs no card, so let your bookkeeper try it first.
Dext
Dext reads receipts and supplier bills from a photo, sorts them into categories and sends them to Xero or QuickBooks with the receipt attached.
If your bookkeeper does the entering: Dext
Dext is built for the person who keeps your accounts. Staff send in a photo of a receipt, and supplier bills go through the same place. Your bookkeeper then checks the details and sends them to Xero or QuickBooks. It also has approvals, paying people back and GPS mileage.
Where it stands out
- One place for supplier bills and staff claims
- Sends each cost to Xero or QuickBooks with its receipt
- Each extra user adds 50 documents a month
Buy it if
- A bookkeeper enters your costs each month
- Supplier bills take up as much time as staff claims
Skip it if
- You only have staff claims to deal with
- You have 3 people or fewer and want to pay nothing
Only dealing with staff claims?
Zoho Expense is free for up to 3 users and $4 a user a month after that, which is $40 at 10 people against $60.25 on Dext.
If you have more than 3 people and no budget
Odoo's Expenses app is free with unlimited users, as long as it's the only Odoo app you use. That gets you past the 3-person limit on Zoho Expense's free plan.
You should know three things first. Reading receipts uses credits, with 200 free and then 100 documents for €15. Approved expenses go into Odoo's own accounting, so it suits you best if you'd use Odoo for that too. And a second Odoo app moves you to a paid plan, $16.90 a user a month for the first year.
Odoo
Who it's for
Odoo is for a business that wants accounting, sales, HR and expenses in one system, or that wants a free expenses app and doesn't need it to reach other software.
- Free planOne app, unlimited users
- Reading receipts200 free credits, then bought separately
- After 12 months$21.10 a user on Standard
- Light users$5.90 a user, arranged with an advisor
What Odoo gives everyone
- One app free for unlimited users, with no credit card to start
- Instant access to an Odoo database in the cloud
Verified on 4 November 2026
Odoo's offer today$16.90 a user instead of $21.10 on Standard, for your first 12 monthsShown on odoo.com on 4 Nov 2026.
Our recommendations on Odoo's plans
Starting out? Start with only Expenses installed. Everyone on your team can claim and nobody pays, as long as you don't add a second app.
Growing or switching? Move to Standard when you want Odoo's accounting too. Everyone who claims then counts as a paying user, so 10 people cost $169 a month for the first 12 months and $211 after that.
Against Zoho Expense? Zoho Expense's Standard plan is $40 a month for 10 people and sends expenses to QuickBooks or Xero. Odoo's Standard plan is $129 more, and it also replaces your accounting and sales software.
Every plan includes unlimited support, hosting and maintenance. Reading receipts automatically uses Odoo's in-app credits, which are bought separately.
View all 3 Odoo plansPriced per user a month in US dollars; one app is free
Mirrored from odoo.com These are Odoo's own plans, prices and limits, as its pricing page showed them on 4 Nov 2026. The “Pick it if” lines are ours. Choose a plan to see it on Odoo.
- One app, such as Expenses
- Unlimited users
- Apps that app depends on come free too
- Hosting and support
- Installing a second app moves you to Standard
- All apps, Accounting included
- Hosting and maintenance
- Unlimited support by email
- $21.10 a user after the first 12 months
- An employee who reports expenses counts as a paying user
- Everything in Standard
- Odoo Studio and agentic AI
- Multi-company and the external API
- Odoo Online, Odoo.sh or on-premise
- $40 a user after the first 12 months
Checked 4 Nov 2026
Start on Odoo's One App Free plan
No credit card to start, and instant access.
you'll go to www.odoo.com
If you want company cards as well
Airwallex suits a team that's tired of paying people back and would rather give them a card with a limit. Up to 10 people pay nothing on its Explore plan. The cards are paid from your own balance, and it lists 69 places where a business can register, so check yours first.
Airwallex
Airwallex is a business account with multi-currency cards, expenses, pay-backs and a sync to Xero or QuickBooks built on top.
For a small team outside the US: Airwallex
Airwallex gives up to 10 people cards for nothing, with no personal guarantee and no credit check. The count includes anyone who holds a card, or who submits, approves or pays an expense.
Where it stands out
- Unlimited multi-currency cards, no international card fees
- Up to 2% cash rebates on local US dollar spending
- Currency exchange at 0.5% above the market rate for major currencies
Buy it if
- Your team is 10 people or fewer
- You pay people or suppliers in more than one currency
Skip it if
- You need to borrow on the card from day one
- You'll pass 10 people soon and want no platform fee
Past 10 people, with no need for its cards?
Zoho Expense costs $4 a user with the cards you already have, so 30 people pay $120 a month against Airwallex's $360 plus a fee.
If you're choosing HR or payroll anyway
Rippling runs expenses from your employee records, so card rules can change when someone is promoted, and cards can be reassigned when they leave. You'll need its sales team for a price, so it only makes sense if you're picking HR or payroll software at the same time.
Rippling
Who it's for
Rippling is for a growing team that wants one system for employee records, payroll, expenses and company cards, so approvals follow each person's role and department.
- Paying people backThrough Rippling Payroll, in 100+ countries
- ApprovalsRules by role, department, vendor or amount
- Company cardNo personal guarantee or personal credit check
- Startup offer6 months free for eligible US VC-backed startups
What Rippling gives everyone
- A personalised demo, booked from a short form: name, work email, company and country
- Rippling quotes each company, so the price comes from that conversation
Verified on 4 November 2026
you'll go to try.rippling.com
So where do you start?
Start today with the rules. Write them on one page or put them straight into a free app, then send them round. This week, name your approver and pick your payday. For many small businesses, that's all employee expense management needs, and it costs nothing but an afternoon.
After a month, count your claims. If people are claiming at least twice a month each, try Zoho Expense, or Dext if a bookkeeper does most of the work. If they aren't, keep the spreadsheet, because it's doing its job.
Questions owners ask about employee expenses
Is a card statement enough instead of a receipt?
Usually not. A statement shows you paid a shop on a date, but not what you bought.The IRS says a canceled check by itself doesn't prove a business expense without other evidence of the business purpose, and a VAT claim in South Africa needs a tax invoice or a till slip showing the VAT. Ask for the receipt every time.
Do we legally have to pay employees back?
It depends where you are.California's Labor Code section 2802 says an employer must repay an employee's necessary work costs, so don't use a policy deadline to refuse a real cost there. Other places have different rules. Wherever you are, say plainly in your policy what you will and won't repay.
What if someone loses a receipt?
Ask for a short note with the date, shop, amount and reason, and match it to their card or bank record.That's fine now and then for small costs. In the US, the IRS generally doesn't need a receipt for a cost under $75 other than a hotel, though you still need the record of what it was for. If one person keeps losing receipts, talk to them.
1 more question
What is a per diem, and should we use one?
A per diem is a fixed daily amount for meals, or for meals and a hotel, paid instead of repaying each receipt.It saves paperwork if people travel often. In the US, the IRS accepts it as proof of the amount only if it's no more than the federal rate, and the employee still shows the dates, place and business reason. If trips are rare, just repay the actual costs.
Mentioned in this guide
Ranked9 Best Expense Management Software for Startups (2026)Nine expense tools priced at 3, 10 and 30 people: who can get each one, what it costs as you hire, and when to move on.Last checked on 4 Nov 2026
Ranked9 Best Receipt Scanner Apps for Small Business (2026)Nine receipt scanner apps grouped by where receipts need to go: a tax folder, QuickBooks or Xero, a bookkeeper or…Last checked on 30 Oct 2026
Ranked7 Best Expensify Alternatives (2026), Priced for 15 PeopleSeven Expensify alternatives priced for a team of 15 against Expensify's $75 a month, and which one fits each reason to…Last checked on 30 Oct 2026