Savings overhead expenses by operating an online business don’t automatically put you in the black. Web hosting to software subscriptions, payment gateways to ad rates, the expense of going onto the web accrues quickly—when they’re also not closely tracked.
While scaling an internet business is oftentimes the skill of creating revenues, stewarding where the monies are going is equally crucial.
This is where cost control enters the picture. When done right, it helps you to make wiser decisions, trim unnecessary costs, and budget more accurately. Done wrong—or to some degree, not at all—it can undercut your profit margins while you're distracted.
Here’s what every online business owner needs to know about managing expenses in a digital-first world.
Why Expense Management Matters for Online Businesses
Online businesses often run on dozens of small tools and services—email platforms, domain renewals, cloud storage, plugins, automation tools, design apps, and more. Each may seem minor, but together they can create a bloated budget.
The ease of signing up for new services also means it’s easy to forget about them. Auto-renewals run in the background, duplicate tools stack up, and spending gets fuzzy. Without a process, you can lose track fast.
“As technology has evolved to take up between 4-5% of the average company’s budget, the need to manage IT costs has gained greater executive awareness over time.”
— Hyoun Park, CEO and Principal Analyst, Amalgam Insights
Good expense management helps you:
- Identify where you're overspending
- Cut out underused or unnecessary subscriptions
- Allocate funds to more effective tools
- Stay compliant and ready for tax season
A 2023 survey from Deloitte found that 77% of companies are actively working to improve cost management in response to growing digital infrastructure expenses.
For online businesses, that effort should start with understanding how to manage and review digital costs regularly.
What is Technology Expense Management?
Source: Pexels
Technology expense management isn’t just for large enterprises. Even small businesses need to get a handle on where and how they spend on tech.
“Technology expense management is a method and toolset employed by enterprise organizations to track technology and derive actionable insights on their IT assets and services.”
The term refers to the process of tracking, analyzing, and optimizing technology-related costs, and for digital-first businesses, this usually includes:
- Website hosting and maintenance
- SaaS subscriptions (like CRMs, design tools, or project management platforms)
- Cloud storage
- E-commerce platforms and payment processing fees
- Marketing tools (email, ad platforms, analytics, etc.)
- Virtual team tools (Slack, Zoom, Trello, etc.)
Regularly auditing these tools gives you clarity and control. You'll know which tools generate value—and which ones just eat up space on your expense report.
Understanding Accrued Expenses
Source: Pexels
Not every cost shows up when you spend the money. Certain costs are paid for before they are incurred, which are then referred to as accrued expenses.
This is particularly true for accounting in an online business, where services are consumed in one month but charged in the subsequent month.
For example, if you have paid search ads in May but are billed for them in June, you still have to charge the cost to the books for May. If you overlook these timing effects, you are going to end up scrambling your financial statements and budgeting.
Tracking these types of expenditures is crucial to budgeting, especially if you are juggling multiple recurring services and vendor setups.
Key Categories to Monitor
Organizing your expenses makes it easier to manage them. Here are some key categories to track:
- Recurring subscriptions (monthly or annual software fees)
- Transaction fees (Shopify, Stripe, PayPal, etc.)
- Marketing and advertising (Google Ads, Facebook Ads, influencer payouts)
- Freelancer or contractor payments
- Shipping or fulfillment costs (if applicable)
- Customer support platforms
- Data and cybersecurity tools
These all fall within your broader technology expense management strategy. If you look at them in relation to each other, you will be able to determine where you can consolidate, negotiate, or end.
Top Tools for Tracking Business Expenses
Source: Pexels
Staying on top of spending doesn't have to mean building a spreadsheet from scratch. There are plenty of tools that can help:
- QuickBooks or Xero for general bookkeeping
- Expensify for receipt tracking and approval flows
- Trello or Notion for manual tracking with more flexibility
- Divvy or Ramp for managing subscriptions and corporate cards
In the case you are managing several revenue streams or vendors, the tools are able to avoid late payments or billing surprises. Additionally, they promote easier reporting when tax time is near.
How to Improve Your Expense Management System
If your current expense tracking is scattered or inconsistent, here’s how to tighten things up:
- Review your subscriptions quarterly. Cancel anything you haven’t used in the last 60 days.
- Set a spending limit for new tech tools. Don’t sign up impulsively.
- Automate alerts for renewals. So you’re not caught by surprise.
- Store receipts and invoices in a single cloud folder.
- Use a dedicated business bank account and card. It keeps things clean.
- Assign someone to review monthly expenses. Even if it’s just you, set a calendar reminder.
These small habits build a reliable technology expense management routine over time.
Frequently Asked Questions
1. What is technology expense management?
Technology expense management is the process of tracking, analyzing, and optimizing all technology-related spending—like SaaS subscriptions, cloud storage, and online tools—to ensure efficient use of business funds.
2. Why do online businesses need expense management more than traditional ones?
Online businesses often use a wide range of digital tools and services that can easily go unnoticed or auto-renew in the background. Without a solid system, these costs can balloon and reduce profitability.
3. How often should I review my business expenses?
A good rule of thumb is to review expenses quarterly. This gives you enough time to evaluate tool usage, cancel underused services, and make budget adjustments before costs spiral.
4. What are accrued expenses and why do they matter?
Accrued expenses are costs you've incurred but haven't been billed for yet. They're important because failing to account for them accurately can throw off your financial statements and mislead your budgeting efforts.
5. What tools can help me manage my technology expenses?
Popular tools include QuickBooks or Xero for bookkeeping, Expensify for receipt tracking, and Divvy or Ramp for managing subscriptions and spend controls. They simplify tracking and help avoid billing surprises.
Final Thoughts
Managing expenses is never exciting, but in an online business, you can’t do without it.
When you’re scaling your technology stack and the complexity of the operations is increasing, you have to know where you’re losing your hard-earned money and where you’re having value.
From understanding the role of accrued expenses to building a clear technology expense management system, keeping your digital spending in check is one of the smartest ways to protect your margins—and grow responsibly.
Author Bio
I'm Mick and I run the growth team at POWR. We make no-code apps and plugins for e-commerce shop owners and small businesses globally. Last I checked, we have over 18 million POWR apps in the wild and in every country on Earth 😎
My career spans two decades, primarily in growth marketing and advertising with stints in broadcast television, healthcare marketing, and copy editing.
I went to the College of Journalism at the University of Louisiana - Monroe. My wife Elizabeth, son Gavin, and pup Jolene (yes, only Jolene gets in the picture lol) call Lafayette, Louisiana, home.
Follow me on LinkedIn
