Expense tracking for small teams is knowing what was spent, by whom, for what, with proof, and that someone approved it before it reached the books. Three habits make it work: a short written policy, receipts captured the moment they exist, and approval within days, not months. This guide shows how to set that up with a sheet, then how to choose a tool when the sheet starts to hurt.
Start with a one page policy
People spend carefully when they know the rules, and are annoyed when rules appear after the fact. Write a page that answers:
- What can be claimed. Travel, meals with clients, software, supplies, training. Say what cannot, such as fines or personal items.
- Limits. A daily meal limit, a hotel limit, and the amount above which you want approval before the purchase.
- Proof. A receipt for everything above a small amount. The tax invoice, not only the card slip, where that is what your tax office wants.
- Timing. Claims within 30 days, say, so the books can close.
- Who approves. Normally the person's manager. Nobody approves their own claim.
- How you pay back. Which day, to which account.
Our expense policy template is a starting point, and the expense report template gives people one format to fill in.
Capture receipts at once
Lost receipts are the biggest practical problem. Paper fades and gets left in jackets. Fix it with one rule: photograph the receipt the same day. A phone photo, in a shared folder or an expense tool, is enough in many countries. Ask your accountant to confirm for yours.
For each expense, record the date, the amount and currency, the supplier, what it was for, and the project or customer if you charge it on. Foreign currency expenses need the rate you used. Write the purpose in plain words, because "lunch" tells an auditor nothing, while "lunch with the customer to discuss the renewal" does.
The claim flow
A good flow has five stops, and a status at each:
- Not sent. The person is still filling it in.
- Waiting for approval. Sent to the approver.
- Approved or sent back with a reason so the person can fix it.
- Paid back, with the date.
- Posted to the books, under the right account.
Put a time limit on each stop. A claim that sits waiting for two weeks teaches people not to claim.
Sheet or tool
A sheet is fine for a team of three to five with a few claims a month. Use one tab per month, one row per expense, and a folder of receipts named by date. It stops working when:
- Receipts and rows no longer match.
- Approvals happen in chat messages nobody can find.
- You spend a day each month typing amounts into the books.
- Mileage and per diems are calculated by hand.
- You need to show an auditor who approved what.
At that point a tool pays off. Here is what some cost, checked on the vendors' own pages on 1 November 2026:
| Tool | Free plan | Paid plans |
|---|---|---|
| Zoho Expense | Up to 3 users, 5 GB receipt storage, 20 receipt scans per user a month | Standard $4 per user a month, $3 billed yearly. Premium $6, or $5 billed yearly |
| Expensify | Check its pricing page | Plans differ by team size and features |
Prices change and differ by currency, so look at the page before you decide. Ask any vendor: Can I export all claims and receipts? Can approvers work from a phone? Does it handle mileage rates and foreign currency? Does it connect to my accounting tool? What does a person cost when they only submit one claim a quarter?
