Do You Need Expense Software If You Already Use QuickBooks

Small business owners often wonder if QuickBooks' built-in expense tracking is sufficient or if they need to invest in separate expense management software. With QuickBooks, you can track expenses, generate invoices, and reconcile accounts, but it may not be enough to meet the needs of larger or more complex businesses. For example, if you have a team of employees or multiple departments with diverse expense categories, QuickBooks' built-in features may fall short. For the bigger picture, see our guide to expense management software for under $10/user (2026).

When to Use Expense Software in QuickBooks

For business use, the IRS standard mileage rate varies. The rate is 76 cents per mile from July 1 to December 31, 2026, 70 cents per mile for 2025, and 67 cents per mile for 2024. This can include mileage for business use, parking fees, tolls, and other expenses related to business activities.

To take advantage of the business use deduction, you'll need to track your expenses and calculate the total business use percentage of your miles driven. You can use a simple calculation to determine this percentage: divide the total business miles driven by the total miles driven for personal use and multiply by 100.

You can also use expense tracking features in QuickBooks to calculate the business use percentage. To do this, navigate to the "Expenses" menu and select "Track Expenses." Then, click on the "Vehicle" tab and enter the business use percentage. QuickBooks will automatically calculate the business use percentage and generate an expense report with the correct deduction amount.

Best Practices for Implementing Expense Software

Do You Need Expense Software for QuickBooks?

When it comes to managing expenses for your small business, QuickBooks is a popular choice for many owners and office managers. However, do you need to invest in separate expense management software if you're already using QuickBooks?

Here's a comparison of the two options:

If you're a small business with simple expenses, QuickBooks might be sufficient. However, if you have a larger staff, more complex expenses, or need advanced features, Incurdesk might be a better fit.

Best Practices for Implementing Expense Software

When implementing expense software, follow these steps:

• Determine your business needs and budget before making a decision
• Choose a software that meets your specific requirements
• Train staff members on the new software
• Set up the software to integrate with your QuickBooks accounting system
• Review and test the software to ensure it's working correctly
• Consider implementing a phased rollout to avoid disruptions to business operations

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.

Do You Need Expense Software for QuickBooks?

While QuickBooks can automatically import and categorize expenses, offers smart receipt scanning and matching, and includes mileage tracking via a mobile app, these features are not sufficient for all small businesses. For instance, QuickBooks may not accurately match receipts or may not automatically detect business-related expenses.

For an expense to be deductible, it must meet specific criteria. According to the IRS, an expense must be both ordinary and necessary for the work. This means that the expense must be common in the industry and helpful for the business.

Additionally, the IRS requires that expenses be recorded in the year they are incurred, not in the year they are paid. This means that QuickBooks' automatic expense import and categorization may not accurately reflect the timing of expenses.

Furthermore, some expenses may not be eligible for reimbursement, such as business entertainment expenses. These expenses are considered personal expenses and are not deductible.

Varying

Inaccurate or incomplete data can lead to incorrect expense claims.

Comparison of Expense Management Software for Small Businesses

1. Check if your business has a large number of employees or frequent travel, as these may require more detailed expense tracking.
2. Consider the type of expenses your business incurs, such as travel, meals, or equipment purchases, and whether QuickBooks can manage these types of expenses effectively.
3. Look at the features of the expense management software you're considering, such as the ability to categorize expenses, generate reports, and allow multiple users to access the system.
4. Make a list of the features that are essential to your business and compare them to the features of the software you're considering.
5. If you find that the software you're considering lacks the features you need, you may want to explore other options.