Softwr

Accounting & Finance · head to head

Avalara vs Expensify

Avalara logo

Avalara

Accounting & Finance

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
Expensify logo

Expensify

All industries

Expense management for receipts, bills & more

From
$5/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription; Expensify minimal offline expense entry capabilities hamper use in areas with unstable internet
  • They diverge on capability: Avalara covers Tax calculation, Expensify covers SmartScan receipts.

Where they differ

Only the attributes on which Avalara and Expensify actually diverge.

Attributes where Avalara and Expensify differ
AttributeAvalaraExpensify
Starting price$29/month$5/month
Pricing modelsubscriptionUnknown
PlatformsWeb, ApiWeb, iOS, Android
CategoryAccounting & FinanceAll industries
Founded20042008

Identical on both: free tier (No), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • Shopify
  • Magento
  • SOC 2

Only in Expensify

  • SmartScan receipts
  • Expense reports
  • Corporate cards
  • Reimbursements
  • Travel booking
  • Mileage tracking
  • Multi-currency
  • Real-time syncing

Both cover

  • QuickBooks
  • NetSuite
  • GDPR

What people use each for

The jobs each tool is most often brought in to do.

Avalara

  • Real-time sales tax calculation at checkoutnot Expensify
  • Multi-state and multi-jurisdiction tax determinationnot Expensify
  • VAT, lodging, communications and excise tax calculationnot Expensify
  • Feeding tax results into an ERP or ecommerce platform through the APInot Expensify

Expensify

  • Expense reportingnot Avalara
  • Receipt managementnot Avalara
  • Travel expensesnot Avalara
  • Corporate card managementnot Avalara
  • Reimbursementsnot Avalara

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Avalara

  • Plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • Billed by transaction, where one API call is one transaction, so cost tracks invoice volume
  • The free option is limited to the Streamlined Sales Tax programme, in up to 25 states and only for qualifying businesses

Expensify

  • Minimal offline expense entry capabilities hamper use in areas with unstable internet
  • OCR receipt data extraction requires manual review and correction for accuracy
  • Per-user pricing model increases costs for larger organizations

Pricing, plan by plan

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

Expensify

$5/month

No published plan breakdown. See the Expensify review.

Which should you pick?

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Choose Expensify if

  • You need smartscan receipts.
  • You work on Web, iOS, Android.
  • You also want expense reports.
Expensify review

Questions people ask

Is Avalara or Expensify better?
Neither clearly leads. Avalara starts at $29/month and Expensify at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or Expensify?
Avalara starts at $29/month and Expensify at $5/month.
Does Avalara or Expensify run on more platforms?
Avalara runs on Web, Api. Expensify runs on Web, iOS, Android.
What is Avalara best used for?
Avalara is most often used for real-time sales tax calculation at checkout, multi-state and multi-jurisdiction tax determination, vat, lodging, communications and excise tax calculation, feeding tax results into an erp or ecommerce platform through the api. Of those, real-time sales tax calculation at checkout and multi-state and multi-jurisdiction tax determination are not what Expensify is typically brought in for.
What can Avalara do that Expensify cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management. Expensify covers SmartScan receipts, Expense reports, Corporate cards, Reimbursements. Both handle QuickBooks, NetSuite, GDPR.

Answered from the vendors’ own pages

Expensify: How does Expensify capture receipts?

Expensify uses SmartScan technology with OCR to automatically extract data from receipt images, reducing manual data entry. Users can photograph receipts with their phone to quickly create expense entries.

Source
Expensify: What reimbursement methods does Expensify support?

Expensify supports ACH reimbursement via direct deposit after setting up a direct deposit account. Next-day reimbursement is available, or standard processing takes 3-5 business days.

Source
Expensify: How does Expensify offline mode work?

Expensify has limited offline capabilities. Users can capture receipts offline, but data syncs when internet connectivity is restored. Full functionality requires online access.

Source
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