You started a business to do work you love — not to become an accountant. But tracking expenses is non-negotiable. The IRS (or your local tax authority) expects it, your accountant needs it, and your bottom line depends on it.
The problem? Most business expense tools are built for enterprises with 500 employees. If you're a freelancer, solopreneur, or small business owner, you need something simpler. Here's our guide to the best expense trackers for small businesses in 2026.
What Small Business Owners Actually Need
Before choosing a tool, let's define the requirements. Most small business owners and freelancers need:
- Separation of personal and business expenses — the IRS wants these cleanly divided
- Category tracking — office supplies, travel, meals, equipment, etc.
- Receipt management — proof of expenses for audits and deductions
- Export capability — send data to your accountant at tax time
- Monthly reports — understand your cash flow
What most small business owners don't need: invoicing, accounts receivable, payroll, or double-entry bookkeeping. Those are accounting features, not expense tracking features.
Best Expense Trackers for Small Business
1. Pocket Clear — Best for Simple, Private Tracking
Price: Free (Pro: $0.99/month)
Best for: Freelancers and solopreneurs who want fast, simple tracking
Pocket Clear isn't marketed as a "business" app, but that's precisely why many small business owners love it. It's fast, simple, and stays out of your way. Create business-specific categories (Travel, Office, Meals, Software), log expenses as they happen, and export everything to CSV at tax time.
Why it works for small business:
- Create custom categories that match tax deduction categories
- Track expenses in seconds — no complex forms
- Export to CSV/PDF (Pro) for your accountant
- No bank linking means your business financial data stays private
- Works offline — track at client sites, events, or on the road
Limitations: No invoicing, no receipt scanning, no mileage tracking. If you need those, see Expensify or QuickBooks below.
Best for Simplicity
If you want to track business expenses without enterprise overhead, Pocket Clear does the job perfectly — and it's free.
2. Expensify — Best for Receipt Management
Price: Free (limited) / $5-9/user/month
Best for: Businesses that process lots of receipts
Expensify is the king of receipt scanning. Snap a photo of a receipt, and the app extracts the details automatically. It's overkill for a solo freelancer but valuable if you regularly submit expense reports or need audit-proof receipt storage.
Why it's good: Best-in-class receipt scanning, automatic categorization, expense report generation, integrates with accounting software.
Limitations: Complex for solo users. Free tier is limited. Enterprise-focused features you'll never use. Data stored on their servers.
3. QuickBooks Self-Employed — Best for Tax Preparation
Price: $15/month
Best for: Freelancers who want expense tracking + tax preparation in one app
QuickBooks Self-Employed connects to your bank, automatically categorizes business vs. personal expenses, tracks mileage, and estimates your quarterly taxes. It integrates directly with TurboTax.
Why it's good: Automatic tax categorization, mileage tracking, quarterly tax estimates, TurboTax integration.
Limitations: $15/month is expensive for basic tracking. Requires bank linking. Intuit (same company that shut down Mint) owns your data. Limited reports.
4. Wave — Best Free Accounting Software
Price: Free (payment processing has fees)
Best for: Small businesses that need invoicing + expense tracking
Wave is a genuinely free accounting platform that includes expense tracking, invoicing, receipt scanning, and financial reports. It's impressive for a free product, though it monetizes through payment processing fees.
Why it's good: Free accounting with invoicing, good reports, receipt scanning, bank connections.
Limitations: More complex than a simple expense tracker. Requires bank connection for best experience. Canada and US focus.
Separating Personal and Business Expenses
This is the #1 mistake freelancers and small business owners make. Mixing personal and business expenses creates a nightmare at tax time and can trigger IRS red flags.
The Simple System
- Get a separate bank account (and credit card) for business. This is step zero.
- Track business expenses separately. In Pocket Clear, create business-only categories. Log all business purchases there.
- Review weekly. Spend 15 minutes each Friday verifying that personal and business expenses are in the right place.
- Export monthly. Send your accountant a clean monthly report of business expenses.
Tax Deduction Categories to Track
Set up these categories in your expense tracker to align with common tax deductions:
- Home Office — rent portion, utilities, internet (percentage of home used for business)
- Travel — flights, hotels, ground transportation for business trips
- Meals — business meals (50% deductible in the US)
- Equipment — computers, phones, tools, furniture
- Software & Subscriptions — business tools, hosting, SaaS subscriptions
- Marketing — ads, website costs, business cards, events
- Professional Services — accountant, lawyer, consultants
- Vehicle — gas, maintenance, insurance for business use
- Education — courses, conferences, books related to your business
- Insurance — business liability, professional indemnity, health insurance (if self-employed)
Receipt Management Tips
Receipts are your proof of business expenses. Without them, deductions can be disallowed in an audit. Here's a simple system:
- Photograph immediately. Take a photo of every receipt right when you get it.
- Store digitally. Keep photos in a dedicated folder (Google Drive, iCloud, or your app's receipt feature).
- Note the business purpose. "Lunch with client — discussed Q3 project" is better than just "lunch."
- Review monthly. Match receipts to tracked expenses.
Monthly Reporting for Better Cash Flow
Most freelancers don't know their actual profit until tax time. Fix this with a monthly review:
- Export your business expenses from your tracker
- Compare total expenses to total revenue
- Identify your biggest expense categories
- Look for expenses you can reduce or eliminate
- Set aside estimated tax payments (25-30% of profit in the US)
Our Recommendation
For most freelancers and solopreneurs, Pocket Clear provides everything you need: fast expense entry, custom business categories, and export for tax time. It's free, private, and doesn't require sharing your business financial data with anyone.
If you need invoicing and full accounting, Wave is an excellent free option. If receipt management is critical, Expensify leads the pack. And if you want integrated tax prep, QuickBooks Self-Employed is worth the $15/month.
The key is picking something simple enough that you'll actually use it. A complex accounting system that sits unused is worse than a basic expense tracker that you open daily.
Try Pocket Clear Free
Simple expense tracking for small business owners. No enterprise complexity.
Frequently Asked Questions
What is the best expense tracker for freelancers and small business owners?
For simple expense tracking without enterprise overhead, Pocket Clear is the best choice. It's free, private, and lets you separate personal and business expenses with categories. For full accounting with invoicing, QuickBooks Self-Employed or Wave are better options.
How should I separate personal and business expenses?
Use separate bank accounts for personal and business, and track them in separate categories. In Pocket Clear, create business-specific categories like 'Business Travel,' 'Office Supplies,' and 'Client Meals.'
Can I use Pocket Clear for business expense tracking?
Yes. While designed for personal finance, Pocket Clear works well for sole proprietors and freelancers. Create business categories, track expenses, and export to CSV/PDF for your accountant at tax time.
What business expenses are tax deductible?
Common deductible expenses include: home office costs, business travel, equipment, software subscriptions, professional development, marketing, insurance, and vehicle expenses for business use. Always consult a tax professional.
Do I need accounting software or is an expense tracker enough?
If you're a solo freelancer with straightforward finances, an expense tracker is often enough. You'd need accounting software if you send invoices, track accounts receivable, need double-entry bookkeeping, or have employees.
How often should I track business expenses?
Track immediately as expenses occur. Set a weekly 15-minute review to categorize and verify. Do a thorough monthly review for cash flow analysis. This prevents the dreaded 'shoebox of receipts' at tax time.