Cloud accounting solutions have been recognized as a vital technology for businesses to adopt. Not only do they improve on nearly all aspects of manual accounting systems, but their ability to integrate third-party solutions accentuates their flexibility, and suitability for small businesses. Unfortunately for many, the amount of choices available can be overwhelming, especially when deciding which apps are best suited to handling core internal tasks such as employee expense management. In this article, we look to compare Xero Expenses and Expensify, two of the best employee expense management systems for cloud accounting purposes, to help readers decide which system is most suited for them!
What You Will Learn
1. What is Xero Expenses and Expensify?
Both platforms are expense management tools. Both platforms help businesses reduce the time needed to track and manage their employee’s expense claims. The intention for these platforms is to create efficiency by streamlining the entire process of employee expense claims. From recording expenses, reconciling the financial information to reimbursing your employees, these platforms eliminate the manual processes involved.
2. What are the pricing differences?
Despite acquiring a Xero subscription, Xero users will still need to pay for the use of Xero Expenses. Xero Expense subscriptions start at USD 4 per month for one person use, with an additional USD 4 charged per month for each additional active user.
Expensify by comparison, is not designed around a pre-existing cloud accounting platform and is made with the intention of integrating with other platforms. Therefore, their pricing is comparatively more expensive, although must be included onto your existing cloud-accounting expenses. Expensify subscriptions start from USD5/month for individuals and USD5-10/month for teams or businesses (depending on the features required).
3. What are the features of both platforms?
Both Xero Expenses and Expensify are well known for their variety of features. We have compiled their features and compared them to each other below.
4. What support services can you expect to receive?
As a product of Xero, Xero Expense users will be able to enjoy free online support 24/7. Whether users want to look up support topics or articles, or talk to support team members to ask specific questions, users are able to enjoy high quality support services.
Contrasting Xero Expenses, Expensify does not have as large a variety of support tools available to their users. While Expensify hosts online message boards where users can help each other with their issues, there is a lack of Expensify curated knowledge articles. In addition, while Expensify maintains a “Concierge” service where users can email or chat in real time to a dedicated team of Expensify product specialists, there is a lack of commitment to responding within a set amount of time, unlike Xero.
As many users of Xero Expenses and Expensify are small businesses who lack accounting knowledge, having knowledge based resources available can be an important deciding factor for those who are unsure.
5. How easy are these platforms to use?
Both Xero Expenses and Expensify are designed to facilitate efficiency and simplicity. Therefore, both platforms can be considered easy to use, even if one does not have prior accounting knowledge.
The key argument for their simplicity is the fact that employees can upload receipts in just one click which will automatically create an expense report in your cloud accounting system. These expenses can then automatically be approved, minimizing the need for a manager to review, and approve manually.
6. What cloud accounting platforms can they integrate with?
Both Xero Expenses and Expensify were not designed to be standalone applications. To maximize their effectiveness, they must be integrated into a cloud accounting solution. For example, only by integrating with a cloud-accounting solution can companies automate the reconciliation and reimbursement of their employees through a singular platform.
As a Xero designed application, unfortunately Xero Expenses can only integrate with Xero. There are no other cloud accounting solutions available for those who wish to user Xero Expenses.
On the contrary, because Expensify is independently designed the application has more options available for third-party integration. In addition to being able to integrate with Xero, Expensify can integrate with 8 other platforms, including Quickbooks. For users who are seeking flexibility and options, Expensify is the clear winner in this category.
How Can FastLane Help?
For businesses who want to streamline as many aspects of their internal operations as possible, cloud solutions are a must have. Given the manual processes traditionally involved in managing employee expense claims, Xero Expenses and Expensify are clearly useful tools that can strength cloud accounting platforms.
For enquiries about the benefits of each platform, or for assistance in implementing these platforms for your business, please contact the FastLane Group for support. As a recognised D-Biz IT service provider, the FastLane Group is recognised to be, and qualified to help your business implement a variety of cloud solutions. In addition, engaging us to do so will qualify you for funding under the Hong Kong government’s D-Biz program!