Brex vs. Divvy: Which Expense Management Tool is Suitable for Startups?

As startups grow, tracking and managing expenses becomes increasingly complex, requiring efficient tools to streamline the process.

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Two of the leading expense management solutions in the market today are Brex and Divvy. These platforms offer features like automated expense tracking, corporate credit cards, and seamless integration with accounting software to help startups manage their finances more effectively.

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Choosing the right tool can have a significant impact on your startup's finance and operational efficiency. It is, therefore, important to understand the strengths and limitations of each platform.

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In this Brex vs. Divvy guide, we will explore the features, pricing structures, and integration capabilities of both platforms. This will help you choose the expense management solution suitable for your startup's financial needs.

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Overview of Brex

Alt: brex platform

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Founded in 2017 by Henrique Dubugras and Pedro Franceschi, Brex is a financial technology company designed to reimagine corporate spending for startups.

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Both Dubugras and Franceschi identified a significant pain point in the startup ecosystem: the difficulty of securing corporate credit cards with favorable terms and without personal guarantees.

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Brex was thus created to empower startups and growing businesses with a financial operating system that integrates credit, cash management, and expense tracking into a single platform.

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By taking advantage of the founders' deep understanding of the tech and finance sectors, Brex was able to provide startups with the financial tools and flexibility they need to scale their operations.

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In just a few years, Brex has expanded its product offerings to include cash management accounts, rewards programs tailored to business spending, and advanced spend controls, making it a comprehensive financial solution for modern businesses.

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Features

Highlighted below are some of the features that make Brex an attractive option for businesses that want to streamline their financial operations:

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Corporate Credit Cards

Unlike traditional corporate cards, Brex does not require personal guarantees or credit checks, thereby making it easier for new businesses to access credit. The cards come with high limits and are integrated with advanced expense management features, allowing businesses to manage their spending effectively.

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Automated Expense Tracking and Reporting

This tool categorizes expenses in real-time, reducing the manual effort of finance teams. The platform generates comprehensive reports that provide insights into spending patterns, helping businesses make informed financial decisions.

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In addition, Brex’s integration with popular accounting software such as QuickBooks and Xero simplifies the reconciliation process.

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Seamless Integrations

Brex easily integrates with different tools that startups commonly use. These integrations include accounting software, travel booking platforms, and expense management systems. This connectivity ensures that financial data flows smoothly across systems, reducing the need for manual data entry and minimizing errors.

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Rewards Program

Brex offers a competitive rewards program that is beneficial for startups. Cardholders can earn points on every purchase, with higher rewards for spending in categories such as travel, dining, and software.

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These points can be redeemed for travel, statement credits, and other valuable rewards, providing an additional financial benefit to businesses.

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Advanced Security Features

Security is a top priority for Brex, and the platform includes several features to protect businesses from fraud and unauthorized spending. Brex cards come with real-time notifications for every transaction, allowing businesses to monitor spending closely.

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In addition, the platform offers virtual cards that can be used for online transactions, providing an extra layer of security.

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Pros

• Automates expense tasks with features like accounting rule suggestions, expense auto-categorization, routing approvals, and virtual assistance.
• Includes a mobile app for bookings and approvals, along with 24/7 support from live agents.
• Offers valuable features such as corporate cards, expense management, Brex AI assistant, and accounting integrations at no cost.

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Cons

• Offers basic procurement features, including purchase order (PO) suggestions and a link for vendors to enter payment details, but lacks comprehensive P2P functionality.
• Requires a minimum cash balance of $25,000 in the business account to qualify for a credit limit.
• Advanced features like multi-currency support, custom spend policies, advanced integrations, and in-app travel booking are available only in higher-tier plans.

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Overview of Divvy

Alt: divvy platform

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Divvy (now BILL Spend & Expense), founded in 2016 by Blake Murray and Alex Bean, is a fintech company created to streamline expense management processes and provide real-time financial insights to businesses of all sizes.

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Divvy quickly became popular in the fintech industry by offering a unique combination of corporate credit cards and an expense management platform. The company empowers businesses to manage their expenses effortlessly and efficiently, ensuring that every dollar is accounted for and optimized.

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Divvy's growth has been remarkable, attracting significant investment from prominent venture capital firms. In 2021, the company was acquired by Bill.com, a leading provider of cloud-based software that simplifies, digitizes, and automates back-office financial processes.

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This acquisition has further strengthened Divvy's capabilities and expanded its reach, enabling it to offer even more comprehensive solutions to businesses.

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Features

Corporate Credit Cards with Spend Management

Divvy offers corporate credit cards that are integrated with advanced spend management features. Each card has customizable spending limits, ensuring employees can only spend within the pre-approved budget.

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This helps businesses maintain control over expenses and prevents overspending.

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Real-Time Expense Tracking and Budgeting

Every transaction made with a Divvy card is instantly recorded in the platform, providing immediate visibility into spending.

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In addition, Divvy’s budgeting tools allow businesses to set budgets for different categories and monitor expenses against these budgets in real-time.

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Integration with Accounting Software

Divvy easily integrates with popular accounting software like QuickBooks, Xero, and NetSuite.

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This integration automates the process of syncing transaction data, reducing the time and effort needed for manual data entry and ensuring that financial records are always up-to-date.

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Virtual Cards for Online Subscriptions

Divvy provides virtual cards, ideal for managing online subscriptions and other recurring expenses. These virtual cards can be created instantly and come with customizable limits and expiration dates, offering an additional layer of security and control.

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Automated Expense Reports

With Divvy, the cumbersome process of creating expense reports becomes a thing of the past. The platform automatically generates detailed expense reports, categorizing transactions and attaching receipts. This not only saves time but also ensures accuracy and compliance.

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Pros

• Automates accounts payable, expense management, and accounts receivable tasks.
• Provides a clear view of pending bills, payments, and approval status.
• Automates ACH payments within the Divvy network and offers a Pay by Card feature for quicker payments and enhanced rewards.

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Cons

• Lacks features for procurement processes, including PO creation.
• Cannot process payments to international vendors from subsidiaries.
• Reward points are earned instead of direct cash back, and can only be redeemed if monthly spending exceeds 30% of the credit line.

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Brex vs. Divvy: Comparison of Features

Now that we understand what Brex and Divvy are and what they offer, let’s proceed to discover how both platforms differ.

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Expense Tracking and Reporting

When comparing the expense tracking and reporting features of Brex and Divvy, several factors stand out:

• Real-time updates: Brex and Divvy excel in providing real-time tracking of expenses, ensuring that startups always have an accurate view of their financial status.
• Automated processes: Both platforms offer automated categorization and receipt matching, streamlining the expense management process and reducing manual workload.
• Reporting capabilities: While both tools provide robust reporting features, Brex’s customizable report templates and Divvy’s budgeting tools cater to different needs. Brex might be more suitable for startups that require detailed and tailored expense reports, while Divvy’s focus on budgeting can help startups with stringent budget management requirements.
• Integration with accounting software: Brex and Divvy integrate well with popular accounting software, ensuring that financial data is easily accessible and synchronized.

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In a nutshell, Brex and Divvy offer powerful expense tracking and reporting features. The choice between them will depend on the startup's priorities, such as the importance of budgeting tools versus customizable reporting capabilities.

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Corporate Credit Cards

Brex

The features of Brex corporate credit cards include:

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• No personal guarantees: Brex doesn’t require personal guarantees or credit checks. This is beneficial for founders who want to separate personal and business finances.
• Higher credit limits: Brex offers higher credit limits based on the startup's bank account balance and financial state, rather than personal credit scores. This flexibility is ideal for startups with fluctuating cash flows.
• Rewards program: Brex provides an attractive rewards program, offering points on various categories like travel, dining, software, and even specific business services like rideshares. These rewards can be a cost-saving benefit for startups.
• Instant card issuance: Brex allows for instant issuance of virtual cards, thereby enabling immediate use for online purchases and subscriptions.
• Expense categorization: Automatically categorizes expenses based on custom rules, streamlining bookkeeping and financial management.

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Divvy

The features of Divvy corporate credit cards include the following:

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• Spend management: Divvy’s cards have robust spend management features, allowing businesses to set budgets, control spending, and gain real-time visibility into expenses. This can help prevent overspending and improve financial planning.
• Flexible credit lines: Divvy offers flexible credit lines tailored to the business’s needs, ensuring that startups can access their funds without unnecessary restrictions.
• Rewards program: Divvy’s rewards program provides points on various spending categories, with options to redeem for travel, gift cards, and more. This can add value to everyday business expenditures.
• Virtual and physical cards: Divvy issues both virtual and physical cards, offering flexibility for different types of transactions.
• Automatic expense reports: Divvy simplifies the expense reporting process by automatically generating and categorizing reports. This reduces administrative workload and enhances financial transparency.

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Summary

Both Brex and Divvy provide robust corporate credit card solutions designed to meet the unique needs of startups. Brex stands out with its higher credit limits, seamless virtual card issuance, and a rich rewards program that doesn’t require personal guarantees.

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On the other hand, Divvy excels in spend management, offering detailed budgeting and real-time expense tracking, which can be invaluable for startups aiming to maintain tight control over their finances.

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If you prioritize higher credit limits and a straightforward rewards program without personal credit checks, Brex might be the better choice. However, if you need detailed spend management features and flexible credit lines with robust expense tracking, Divvy could be the more suitable option.

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Integration with Accounting Software

Brex

Brex offers a range of integration options designed to enhance financial management and automate workflows.

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Here's what you need to know:

• Brex integrates with major accounting software such as QuickBooks Online, Xero, and NetSuite. These integrations allow for automatic syncing of transaction data, reducing manual entry and minimizing errors.
• Transactions made with Brex cards are synced in real time with the integrated accounting software. This means your financial records are always up-to-date, and reconciliation is simplified.
• Brex allows for customizable expense categories, which helps in mapping transactions to the appropriate accounts in your accounting software. This feature ensures that expenses are accurately categorized and reported.
• Receipts are automatically captured and linked to transactions in the accounting software. This feature simplifies expense tracking and ensures documentation is always attached to the corresponding transactions.
• For businesses with more complex needs, Brex provides API access and developer support, enabling custom integrations and automation tailored to specific requirements.

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Divvy

Divvy also offers powerful integration features that cater to different accounting needs.

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Here's how Divvy stacks up:

• Divvy integrates with popular accounting software such as QuickBooks Online, Xero, and Sage Intacct. These integrations enable seamless data transfer between Divvy and your accounting system, streamlining financial management.
• Similar to Brex, Divvy provides real-time syncing of transactions with accounting software. This feature ensures that your financial data is always current, facilitating easier reconciliation and financial oversight.
• Divvy's integration includes automatic expense categorization, which maps transactions to predefined categories in your accounting software. This feature enhances accuracy and simplifies expense reporting.
• Divvy allows users to capture and upload receipts directly through the mobile app. Receipts are automatically matched to transactions and synced with the accounting software, ensuring that documentation is consistently maintained.
• Divvy offers customizable integration options and API access for businesses that require more tailored solutions. This flexibility helps create specialized workflows and automation to fit unique business needs.

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Summary

Brex's integration focuses on real-time syncing, customizable categorization, and API support, while Divvy emphasizes automatic categorization, receipt management, and customizable integration options.

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Evaluating these features in the context of your startup’s financial management needs will help you determine which tool offers the best integration capabilities for your business.

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User Interface and Experience

Brex

User Interface

Brex has a sleek, modern, and user-friendly interface. The dashboard provides a clear, organized view of expenses. The main features include:

• Clean design: The UI uses a minimalist design which reduces clutter and makes it easy to find information quickly.
• Real-time analytics: Users can access real-time spending insights and data from the dashboard. This feature helps startups stay on top of their expenses without extensive training or support.
• Mobile app: Brex’s mobile app complements the desktop experience, providing on-the-go access to expense tracking and reporting.

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User Experience

Brex is designed for startups that need an efficient, low-maintenance expense management solution. Its UX includes:

• Streamlined expense reporting: Automatic categorization and easy receipt capture help streamline expense reporting. Users can snap pictures of receipts with the mobile app and let the system handle the rest.
• Integration: Brex integrates seamlessly with popular accounting tools, ensuring users can sync their financial data without hassle.
• Support and training: Brex offers comprehensive onboarding resources and customer support to help users get accustomed to the platform quickly.

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Divvy

User Interface

Divvy’s interface focuses on comprehensive spend management. It offers a robust set of tools within an organized layout:

• Detailed dashboards: Divvy’s dashboards provide detailed insights into company spending, budgets, and card transactions.
• Customization: Users can customize their dashboard to prioritize the information that matters most to them. This flexibility can be particularly useful for startups with specific tracking needs.
• Mobile app: The mobile app offers a similar experience to the desktop interface, with a focus on real-time updates and transaction management.

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User Experience

Divvy delivers a comprehensive experience that supports various expense management needs:

• Real-time budgeting: Divvy excels in real-time budgeting features, allowing users to set and track budgets with ease. This feature is valuable for startups that want to maintain tight control over their finances.
• Virtual cards: Divvy’s virtual card functionality provides enhanced control and security for online transactions. Users can generate virtual cards for specific purchases or subscriptions, which helps prevent unauthorized spending.
• Customer support: Divvy provides robust support resources, including detailed guides and responsive customer service.

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Summary

Brex emphasizes a clean, minimalist design with straightforward expense tracking and reporting. It’s ideal for startups that prioritize simplicity and efficiency.

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Divvy, on the other hand, provides a more detailed and customizable interface with advanced budgeting and virtual card features. It’s suitable for startups that need in-depth spend management and control.

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Pricing

Brex

Alt: brex pricing

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Brex offers three pricing plans; Essentials, Premium, and Enterprise. To access advanced features such as custom roles and permissions, dedicated customer support, ERP integrations, travel management, and live budgeting, you must choose the Brex Premium or Brex Enterprise plan.

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As of now, the Brex Premium plan is priced at $12 per user per month with annual billing or $15 per user per month with monthly billing. Contact Brex Sales for a customized quote for extra features and personalized onboarding.

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Divvy

Divvy provides two main modules: Spend & Expense, which is available at no cost, and Accounts Payable, which comes with the following pricing tiers:

• Essentials: $45 per user, per month
• Team: $55 per user, per month
• Corporate: $79 per user, per month
• Enterprise: Custom

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Brex vs. Divvy: Which Tool is Best for Your Startup?

When choosing between Brex and Divvy for your startup, it's important to consider your needs and priorities. Here are tips to help you determine which tool might be the best fit for your business:

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Assess Your Startup’s Size and Growth Stage

If your startup is in its early stages, you might prioritize ease of setup and flexibility.

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Brex offers features like no personal guarantees and easy integration with accounting software, which can be advantageous for new businesses that need to streamline financial management without complex requirements.

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For startups that are growing rapidly, Divvy’s robust budgeting and real-time expense tracking can be valuable. The ability to manage expenses with virtual cards and set up budgets helps maintain financial control as your team and spending increase.

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Define Your Expense Management Needs

If you need detailed expense tracking and comprehensive reporting, both Brex and Divvy offer strong capabilities. However, Brex’s automated expense reports might be more appealing if you prefer a hands-off approach to expense management.

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Divvy excels in budgeting and expense forecasting with its real-time tracking and virtual card features. If budgeting and financial planning are important to your startup, Divvy might provide the tools you need to stay on top of your finances.

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Evaluate Integration with Existing Systems

Both tools integrate with popular accounting software like QuickBooks and Xero. However, you should consider which tool aligns better with your current accounting practices and whether additional integrations or customizations are required.

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Consider User Experience and Interface

Brex and Divvy both offer user-friendly interfaces, but the choice may come down to personal preference. Test the platforms to see which interface you find more intuitive and which mobile app meets your needs.

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Evaluate the customer support and onboarding processes. Brex offers comprehensive support with a focus on integration, while Divvy provides real-time support and resources that focus on expense management.

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Wrapping Up

Our Brex vs. Divvy guide has revealed that both expense management tools offer powerful features that align with the needs of modern startups, but each brings unique strengths to the table.

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Brex stands out with its seamless integration of corporate credit cards and its focus on automated expense management without requiring personal guarantees or credit checks. It’s an excellent choice for startups interested in a robust, hands-off approach to expense tracking and reporting.

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On the other hand, Divvy offers a comprehensive suite of features that includes real-time expense tracking, budgeting tools, and virtual cards for online subscriptions. Its emphasis on real-time visibility and budgeting makes it ideal for startups that need granular control over spending and wish to avoid overspending.

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The best tool for your startup will depend on your specific needs and priorities. Explore Brex and Divvy through their demos or trial offers to see firsthand which platform best suits your startup’s requirements.

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FAQs

Is Divvy for startups?

Yes, Divvy is an excellent choice for startups. It's designed to streamline expense management. The platform is also a great choice for startups because it offers budgeting, corporate cards, rewards, and a user-friendly interface.

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Is Divvy a bank?

No, Divvy is not a bank. While it offers banking-like features like online accounts and the ability to send and receive funds, it focuses on expense management and corporate cards.

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Does Divvy work internationally?

Yes, Divvy works internationally. Divvy cards can be used worldwide wherever Mastercard is accepted. This makes it a convenient option for startups with international operations or frequent travel.

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