At a Glance
Expense management is one of the most overlooked areas in Canadian small business accounting, and it is also one of the most costly when done poorly. The CRA requires documentation for every business expense you claim as a deduction. A missing receipt does not just mean a messy filing cabinet — it means a lost deduction if you are ever audited. Manual expense processes create tax risk, slow down month-end closing, and introduce errors that compound over time. The right combination of expense management tools eliminates these problems by automating receipt capture, enforcing spending controls, and posting transactions directly to your accounting software.
At LedgerLogic, we set up expense management systems for our bookkeeping clients as part of every engagement. This guide covers the tools we actually deploy — receipt scanners, corporate spending cards, and accounts payable automation — with honest assessments of where each tool fits and where it falls short. Whether you are a solo operator processing a handful of receipts each month or a growing team with 20 employees making purchases, there is a stack that fits your business.
Affiliate Disclosure: LedgerLogic is a Dext, Float, and Ramp partner. We may earn a commission if you sign up through our links at no extra cost to you. We only recommend tools we use with our own clients.
Need Help Building Your Expense Management Stack?
Our CPA team sets up Dext, Float, and Plooto as part of our bookkeeping service. We configure everything to integrate with your Xero or QuickBooks system from day one.
Why Expense Management Matters More Than You Think
Most business owners think of expense management as an administrative task — something that sits between doing the actual work and filing taxes. That framing is a mistake. Expense management is fundamentally a compliance issue, and the consequences of getting it wrong are financial.
CRA documentation requirements are strict. The CRA record-keeping requirements state that you must keep original receipts or digital copies for all business expense deductions. Documentation must include the date, amount, vendor name, and business purpose. If the CRA audits your return and you cannot produce documentation for a claimed expense, that deduction is disallowed — you owe additional tax plus interest and potentially penalties. This is not a theoretical risk. It happens to Canadian small businesses every year.
Manual processes create errors. When employees pay for business expenses on personal cards and submit spreadsheets at month-end, several things go wrong. Receipts get lost. Expenses get miscategorised. GST/HST input tax credits get missed because the receipt was not captured in time. Duplicate submissions slip through. The bookkeeper spends hours chasing down missing documentation instead of doing value-added work. Our virtual CFO clients consistently report that expense management was their biggest operational pain point before automation.
The cost of inaction is measurable. Consider a business with 50 expense transactions per month. If 10% of receipts are lost and each averages $150, that is $750 in potentially disallowed deductions monthly — $9,000 per year. At a 25% combined tax rate, that is $2,250 in unnecessary tax. Add the bookkeeper time spent chasing receipts (conservatively 3-4 hours per month at $50/hour), and the total cost of poor expense management exceeds $4,000 annually. Every tool in this guide costs less than that.
CPA Pro Tip: The CRA accepts digital copies of receipts as valid documentation. You do not need to keep paper originals if you have a reliable digital capture system like Dext or HubDoc. The key requirement is that the digital copy must be legible and include all original details. Snap the receipt the day you get it — do not wait until month-end.
Receipt Capture and Coding — Dext
Dext is the receipt scanner we deploy most frequently for businesses using Xero in Canada. It is purpose-built for receipt capture, data extraction, and automated coding, and it handles the full workflow from photo to posted transaction.
How it works. You snap a photo of a receipt with the Dext mobile app (or forward an email receipt to your dedicated Dext email address). Dext's OCR engine extracts the vendor name, date, total amount, tax breakdown (including GST/HST), and payment method. It then matches the transaction to a supplier rule and suggests the correct account coding in your chart of accounts. Once approved, the transaction publishes directly to Xero as a draft bill or bank transaction. Your bookkeeper reviews and reconciles — the data entry is already done.
Who it is for. Dext makes economic sense for businesses processing 20 or more receipts per month. Below that threshold, the manual effort of coding receipts in Xero directly is manageable. Above it, Dext saves meaningful time and reduces errors. For businesses with multiple employees submitting expenses, Dext's multi-user access and approval workflows become essential. For a detailed setup walkthrough, see our Dext and Xero setup guide for Canadian businesses.
Key features for Canadian businesses. Dext reads Canadian receipts with GST/HST breakdowns natively. It supports supplier rules that auto-code recurring vendors (once you code Tim Hortons as meals and entertainment, every subsequent Tim Hortons receipt gets the same treatment). It integrates directly with Xero, QuickBooks Online, and Sage. The mobile app works offline, which matters if you are capturing receipts at job sites without reliable connectivity.
Pricing. Dext pricing starts at approximately $24 CAD per month for the essential plan, which covers a single user with unlimited document processing. Multi-user plans with approval workflows are available at higher tiers. The subscription is a tax-deductible business expense. Visit dext.com to start a free 14-day trial.
For a full comparison of receipt management tools available to Canadian businesses, see our receipt management tools hub.
CPA Pro Tip: Set up Dext supplier rules during the first month of use. Once you code the 20-30 vendors that account for 80% of your transactions, the system essentially runs on autopilot. The initial setup investment of 2-3 hours saves dozens of hours over the year.
Receipt Capture and Coding — HubDoc (Free with Xero)
HubDoc is Xero's built-in document capture tool, included at no additional cost with all Xero plans. For businesses with simpler receipt capture needs, it provides a viable alternative to Dext without the additional subscription cost.
What HubDoc does well. HubDoc captures receipts via mobile app, email forwarding, or web upload. It extracts key data from receipts and bills, including vendor, date, and total amount. It publishes documents to Xero with basic account coding. For solo operators processing fewer than 20 receipts per month, HubDoc handles the fundamentals adequately.
Where HubDoc falls short. HubDoc lacks several features that make Dext the stronger choice for growing businesses. There are no supplier rules for auto-coding recurring vendors — you must manually code or confirm each receipt. The approval workflow is minimal, which means it does not support multi-step expense approval for teams. The OCR accuracy on Canadian receipts with complex tax breakdowns (particularly receipts showing both GST and PST separately) is less consistent than Dext. There is no offline mode in the mobile app, and the overall data extraction is less granular.
Best for. Solo operators and freelancers with straightforward expenses, fewer than 20 receipts per month, and no need for team expense approval. If you are already on Xero and your receipt volume is low, HubDoc saves you the cost of a separate Dext subscription. For a detailed side-by-side comparison, see our Dext vs HubDoc comparison.
Corporate Spending Cards — Float
Float is a Canadian-built corporate card and spend management platform that combines spending controls with automated expense tracking. For businesses with employees making purchases, Float replaces the problematic cycle of personal card reimbursements with a controlled, trackable system.
How Float works. Float issues physical and virtual Visa cards to your team members, each with customisable spending limits, merchant category restrictions, and approval workflows. When an employee makes a purchase, the transaction appears in Float immediately with a prompt to upload the receipt via the mobile app. Transactions sync to Xero or QuickBooks automatically, coded to the correct accounts based on your configuration. There is no month-end expense report to chase — the data flows in real time.
Key features for Canadian businesses. Float is built for the Canadian market. Cards are issued in CAD. The platform supports 1% cashback on all purchases, which effectively reduces your cost of using the system. Virtual cards can be created instantly for one-time purchases or specific vendors (such as a virtual card locked to your Google Ads account with a $5,000 monthly limit). Budget controls let you set department-level or project-level spending limits that employees cannot exceed. The receipt capture requirement can be enforced — cards can be frozen automatically if receipts are not uploaded within a set timeframe.
Who it is for. Float makes the most sense for businesses with 5 or more employees making regular purchases. The overhead of setting up Float for a solo operator is not justified, but once you have a team spending company money, the visibility and control are transformative. For a comprehensive review, see our Float corporate card review.
Pricing. Float corporate cards are free to issue. There is no monthly platform fee for the standard plan. Float earns revenue from interchange fees on card transactions and passes 1% back to you as cashback. Premium plans with advanced features (custom integrations, dedicated support) are available for larger organisations. Visit floatfinancial.com to learn more about Float's professional plan, which is free for 12 months through our partnership.
Corporate Spending Cards — Ramp
Ramp is a corporate card and expense management platform that has gained significant traction in the North American market. It combines corporate cards with bill pay, accounting automation, and spend analytics in a single platform.
What Ramp offers. Ramp provides unlimited physical and virtual corporate cards with no annual fees. The platform includes built-in receipt matching (receipts are matched to transactions automatically using email forwarding and mobile capture), automated expense categorisation, bill payment automation, and real-time spend reporting. Ramp's software analyses your spending patterns and proactively identifies savings opportunities, such as duplicate subscriptions or vendor contracts that could be renegotiated.
Canadian availability. Ramp has been expanding beyond its initial U.S. market, but Canadian businesses should verify current availability and any limitations before committing. As of the time of writing, Ramp's core offering is optimised for U.S.-based businesses, and some features (particularly bill pay and certain card features) may have restrictions for Canadian companies. If your business operates primarily in Canada, Float is the Canadian-native alternative with full domestic support. If you have significant U.S. operations or U.S.-dollar spending, Ramp may complement your Canadian setup.
Pricing. Ramp's corporate cards and core expense management features are free. Ramp earns revenue from interchange fees on card transactions. The current sign-up offer provides $500 when you spend your first $1,000. Visit ramp.com to check current availability and offers.
For a broader comparison of spend management solutions, see our spend management tools hub.
AP Automation — Plooto
Plooto automates the accounts payable workflow for Canadian businesses, handling the process from bill upload through approval, payment, and posting to your accounting software. Where Dext handles receipt capture and coding, and Float handles employee spending, Plooto handles vendor payments — the third pillar of expense management.
How Plooto works. Upload a vendor bill (or have Dext push it to Plooto after coding). Plooto routes the bill through your configured approval workflow — for example, bills under $1,000 require one approver, bills over $1,000 require two. Once approved, Plooto initiates payment via EFT, international wire, or cheque. After payment clears, Plooto marks the bill as paid in Xero or QuickBooks automatically. The full audit trail — who approved what, when, and for how much — is maintained in the system.
Who it is for. Plooto is most valuable for businesses processing 10 or more vendor payments per month. Below that threshold, paying bills manually through your bank's online portal is manageable. Above it, the time savings from automated approval routing, batch payments, and automatic reconciliation add up quickly. Plooto is particularly valuable for businesses with multiple approvers or where the person entering bills is different from the person authorising payments — a common internal control requirement.
Key features for Canadian businesses. Plooto supports domestic EFT payments (which are significantly cheaper than wire transfers), international payments in 30+ currencies, and even cheque printing for vendors who have not adopted electronic payments. The two-way sync with Xero means bills created in Xero appear in Plooto for payment, and payment status flows back to Xero automatically. Plooto also handles receivables — you can send payment requests to customers and collect via EFT.
Pricing. Plooto's pricing starts at approximately $25 CAD per month for the basic plan, which includes a set number of domestic payments. Additional payments and international transfers incur per-transaction fees. The subscription is a tax-deductible business expense, and the time savings typically justify the cost within the first month of use.
CPA Pro Tip: The combination of Dext for receipt capture and Plooto for payment execution creates a complete procure-to-pay workflow. Dext captures and codes the bill, publishes it to Xero as a draft, and Plooto picks it up for approval and payment. The bookkeeper's role shifts from data entry to review and exception handling — a far better use of their time.
Our Recommended Stack by Business Size
Not every business needs every tool in this guide. The right combination depends on your team size, transaction volume, and complexity. Here is what we recommend based on the business profiles we work with most often at LedgerLogic.
| Business Size | Receipt Capture | Spending Card | AP Automation | Accounting Software |
|---|---|---|---|---|
| Solo / Freelancer | HubDoc (free with Xero) | Not needed | Not needed | Xero Starter |
| 1–5 Employees | Dext | Optional (Float) | Not needed | Xero Growing |
| 5–20 Employees | Dext | Float | Plooto | Xero Growing or Established |
| 20+ Employees | Dext (multi-user) | Float + Ramp (if U.S. ops) | Plooto | Xero Established |
The pattern is clear: as your business grows, each layer of automation becomes more justified. Solo operators can manage with free tools and manual processes. Once you have a team, the cost of not automating exceeds the cost of the tools. Our bookkeeping team configures these stacks as part of every client onboarding — we do not just recommend the tools, we set them up, test them, and train your team on using them.
How These Tools Work Together
The real power of an expense management stack is not in any single tool — it is in how they integrate. Here is the workflow we configure for our clients with 5 or more employees.
Employee purchases on Float card. The transaction appears in Float immediately. The employee receives a push notification to upload the receipt via the Float app. Float syncs the transaction to Xero, coded to the correct expense account based on the merchant category and spending rules you configured.
Vendor bills arrive by email. The invoice is forwarded to the Dext email address. Dext extracts the vendor, amount, due date, and line items. Supplier rules auto-code the bill to the correct accounts. The coded bill publishes to Xero as a draft.
Plooto picks up approved bills. Bills approved in Xero appear in Plooto's payment queue. The finance team reviews and batch-approves payments. Plooto initiates EFT payments on the scheduled date. Payment confirmation flows back to Xero, marking bills as paid.
Month-end is clean. By the time your bookkeeper sits down to close the month, 90% of the work is already done. Receipts are captured and coded. Employee expenses are categorised. Vendor bills are posted and paid. The bookkeeper's role is review, exception handling, and reconciliation — not data entry. This is the efficiency gain that justifies investment in a proper expense management stack.
CPA Pro Tip: When setting up this integrated stack, configure the tools in order: accounting software first (Xero), then Dext, then Float, then Plooto. Each tool connects to Xero, and having the chart of accounts and tax rates configured correctly in Xero before connecting the other tools prevents cascading configuration errors.
Frequently Asked Questions
Seb ProstCPA, Ex-CRA
Licensed CPA with 10+ years of experience, including work with the Canada Revenue Agency. Founder of LedgerLogic, a cloud accounting firm serving Canadian SMEs. Xero Certified Advisor.