Best expense management software for startups and small businesses

Startups run on tight budgets and fast decisions. Expense management often starts as an afterthought. But this can lead to reimbursements piling up and receipts going missing. The best expense management software for small businesses doesn’t just track spend; it also provides real-time visibility and scales, without added complexity. 

This guide breaks down the best expense management software options for startups and small businesses based on team size, workflows, and growth stage.

Before comparing vendors, it helps to define what “good” actually means for a startup or small business. Most teams don’t need enterprise-level complexity, but they do need structure.

Here are the core features that matter the most.

Spend visibility in real-time

Real-time spend visibility means knowing where your money is going the moment it’s spent, not weeks later during reconciliation. 

Modern expense management tools automatically log transactions, categorize spend, and update reports as purchases occur. This minimizes human error and gives teams an accurate picture of cash usage at any moment.

Corporate cards and controls

Expense management works best when spending is proactive, not reactive. Having built-in corporate cards lets teams set limits, restrict where cards can be used, and issue new cards instantly. The outcome? Less time and effort spent on chasing details and reimbursements after the fact.

Receipt capture and policy enforcement

Effective expense management practices should prevent problems, not leave them to be cleaned up later. The best tools automatically capture receipts and apply expense policies in the background, so employees know what’s allowed at the time of purchase. That means fewer follow-ups, cleaner records, and less manual work for finance as your team grows.

If you’re just getting started, try Mercury’s free, customizable expense policy template.

Accounting and payroll integrations

Expense data should move seamlessly into your accounting and payroll systems as your business grows. Native integrations with tools like QuickBooks and Xero reduce reconciliation work, eliminate double entry, and keep financial records accurate as your team size and transaction volume increase.

As your company’s needs evolve, integrations become even more important. The best expense management software connects cleanly with the rest of your financial stack, or offers APIs and third-party connectors to avoid data silos and manual work as your operations scale.

Team-based approvals

As your team grows, approvals need to add structure, without slowing people down. The best expense management software automates approval workflows based on roles, spend thresholds, or categories, reducing back-and-forth and minimizing human error. Expenses are routed to the right reviewers automatically, keeping records up-to-date and freeing founders and finance leads to focus on scaling.

Reporting and analytics

Even early-stage teams benefit from basic reporting. Founders need clear visibility into where the money is going, and investors and auditors expect clean, consistent records. 

The most effective expense management software automatically categorizes spend, generates standardized reports, and keeps data audit-ready, which reduces the risk of errors as transaction volume increases.

For many startups and small- and medium-sized businesses (SMBs), the best software for expense management combines corporate cards, spend controls, and real-time reporting, all in one system.

When evaluating which company offers the best expense management software solutions for your business, focus on how well their tools manage spend at the point of purchase, not just after expenses are submitted.

Below are some of the most common expense management software options that startups evaluate, grouped by use case.

Best overall: Mercury

Mercury is particularly well suited for tech startups that want modern expense management, without adding multiple tools or financial overhead.

Teams can issue virtual and physical cards, set controls by role or vendor, and see transactions in real-time — all from the same place they manage their cash.

Why it works for startups:

• Spend is managed directly through your account
• Simple approvals and card controls
• Clean accounting integrations
• No separate expense platform to maintain

This setup is especially useful for founders and operators who want fewer, better tools.

Learn more about Mercury’s expense management features.

Best for remote or distributed teams: Ramp

Ramp is often used by distributed teams that want clear visibility and automation. It offers corporate cards, receipt capture, and spend insights designed to reduce costs.

It’s best suited for:

• Remote-first teams
• Companies with high card spend
• Finance-led organizations that want optimization tools

The trade-off is complexity. Ramp tends to work best once teams have clear finance processes in place, which can make it feel like a lot to navigate for very early-stage startups.

Best for teams needing strong controls: Brex

Brex can be a good match for startups that need granular controls, multi-entity support, or international spend capabilities.

It’s best suited for:

• Venture-backed startups
• Teams with complex approval needs
• Companies operating across regions

Brex is powerful, but some early-stage teams may find it heavy. Teams might find Brex most valuable once finance ownership and approval structures are clearly defined.

Best free or low-cost option: Zoho Expense

Zoho Expense offers a free tier and affordable plans, making it attractive for very small teams or bootstrapped businesses.

It’s best suited for:

• Solo founders or small teams
• Businesses already using Zoho products
• Companies managing mostly reimbursements

Zoho Expense works well early on, with the option to eventually add more advanced spend controls as your team scales.

Best for scaling startups: Expensify

Expensify is a long-standing expense management tool focused on reimbursements and receipt automation.

It’s best suited for:

• Larger SMBs
• Teams with established finance processes
• Companies managing high reimbursement volume

Expensify is feature-rich, but less card-centric than newer platforms. It’s well suited to reimbursement-heavy workflows. Some startups may start with this tool, but later decide to shift to card-centric tools as they scale.

Many startups start with spreadsheets, shared inboxes, or reimbursement forms. This approach works well until it really doesn’t.

Wondering if your business is starting to outgrow manual expense tracking systems? Here are signs that you’ll usually see first:

• Spreadsheet sprawl: Different teams track expenses differently. Versions drift and errors creep in. Finance spends more time cleaning data than analyzing it.
• Late reimbursements: Manual processes delay reimbursements, which frustrates employees and damages trust, especially in cash-conscious environments.
• Audit and compliance headaches: Missing receipts and unclear approvals create risk. Even small teams need clean records for taxes, investors, and audits.
• Hidden costs of poor visibility: Without real-time data, overspending goes unnoticed. Budget conversations become reactive instead of strategic.

These issues compound quickly for contractors and freelancers. For more detail on setting up smarter financial workflows, read our guide to expense management tracking for freelancers and contractors.

Mercury treats expense management as part of banking.* Cards, controls, and transactions are managed where your money lives, eliminating the need for separate expense software. Here’s how that plays out in practice.

Cards with built-in controls

Issue virtual and physical cards, and set spending limits, merchant restrictions, or expiration dates in seconds. Controls are applied before money is spent, so teams stay within budget, without constant oversight.

Real-time spend tracking

Every transaction is visible as it happens. You can track spend by employee, team, or vendor without waiting for reports. This makes it easier to catch issues early and understand cash usage day to day.

Policy enforcement without friction

Spend policies are applied automatically at the card level, reducing the need for manual approvals or retroactive enforcement. Employees know what’s allowed up front, and finance doesn’t have to chase exceptions later.

If you’re formalizing policies, Mercury’s employee spending policy guide and expense reimbursement template are useful starting points.

Accounting sync that actually works

Transactions flow directly into your accounting software, reducing month-end close time and reconciliation errors. Clean data means fewer surprises and less cleanup at the end of the month. The result is fewer tools, fewer handoffs, and a clearer picture of your finances.

So, what is the best expense management software for small businesses? The more effective option will be the one that matches your business stage. 

As you review the options, keep in mind:

• Early-stage teams benefit from simplicity and native controls.
• Growing teams need approvals and reporting.
• Scaling startups require flexibility, without operational drag.

You don’t need bloated systems or brittle spreadsheets. The best expense management software for small businesses works at your pace today and will grow with your business tomorrow. 

Explore Mercury’s built-in expense controls and smart cards to see how native spend management can simplify your financial stack.