How to Create an Expense Tracking App?

Wondering how to develop an expense-tracking app? Well, we are here to assist you with your query.

As per research, the global market for business expense-tracking apps is currently at $5.5 billion and will reach $21.9 billion by 2033.

Let’s be honest! Financial Management is one of the huge concerns in current times.

Around 77% of Americans felt anxious about their financial situation. Meaning that businesses find it difficult to maintain their funds.

Besides, even if you are great there are some sort of differences in managing money and grasping a business’s finances.

During such times, expense-tracking apps are of help.

This is why investors find it a lucrative opportunity to capitalize on the trend and often look for how to create an expense tracking app.

Now, enjoy the blog that provides complete information from benefits, processes, challenges & costs to create an expense tracking app.

Let’s get it right:

What is an Expense Tracking App?

An expense tracking app is a digital tool that allows users to record and monitor their spending by logging individual transactions, categorizing them (like groceries, entertainment & bills), and providing visual summaries to help individuals analyze their spending patterns and manage their budget effectively.

These kinds of apps fall under the category of budgeting and fintech apps.

Essentially, it helps you keep track of where your money is going across different categories to identify areas where you can potentially save money.

Understanding the Expense Tracking Market

We need to get into the market stats to understand the expense tracking market better. This is exactly what we will do in this section:

The global expense management software market size was estimated at $7.08 bn in 2023. The market is projected to grow from $7.64 bn in 2024 to $16.48 bn by 2032, displaying a CAGR of 10.1% during the given period.

We can expect more, as 60% of businesses will implement AI-powered policy enforcement in their expense management software.

It’s no wonder why investors are drawn to the fintech market and find themselves asking questions like:

What Are Some Top Features to Have in an Expense Tracking App?

If you plan to create an expense-tracking app, make sure to focus on amazing features.

To help you out, we are here to share some of the top features that users will look forward to in your app:

♦ Automatic Transaction Import

Expense Tracking Apps streamline the process by automatically importing transactions from linked accounts & credit cards.

This feature helps users save time by eliminating the need to manually enter each expense. The app categorizes each transaction based on its type, allowing for accurate tracking without extra effort.

Whether you’re at home or on the go, the app continuously updates your financial data, ensuring your records are always up-to-date and reflecting your true spending behavior.

♦ Categorizing Expenses

One of the top features that you need to have in your expense tracking app is “Categorizing Expenses.”

This categorization helps users gain clarity on where their money is going each month.

By sorting expenses into these groups, users can easily see which areas they are overspending on and how they can manage it well.

Many apps allow customization of these categories, so users can tailor them to their unique needs, ensuring a more personalized financial overview.

♦ Budget Creation

Want to develop an expense-tracking app that’s successful in the market, make sure to include core features.

One such is the ability to set up budgets for different spending categories. This assists in users maintaining control over their finances by allocating a specific amount of money to each category each month.

If spending exceeds the set limit, the app sends notifications, helping users stay on track.

The ability to create budgets not only prevents overspending but also aids in long-term financial planning, allowing users to plan for savings and avoid unnecessary debt.

♦ Real-time expense tracking

To develop one such fintech app, you need a real-time expense tracking feature in your app.

Keep your users aware of their current financial standing at all times. By automatically recording and categorizing each expense as it happens, users can monitor their spending habits instantly.

This immediate insight helps users identify and adjust spending behaviors in real-time, ensuring they stay within their financial limits.

So, whether you are on a shopping spree or paying bills, users have an up-to-date snapshot of their expenses right in the palm of their hand.

♦ Customizable Categories

Customization is key to the app’s success.

Expense-tracking apps allow users to create custom categories to reflect their unique spending habits.

Whether you have a niche hobby or an irregular expense, you can designate specific categories to track them effectively.

This level of personalization ensures that no expense goes unnoticed and provides a clearer picture of how money is being spent.

Custom categories allow users to track everything from subscription services to savings goals, offering greater flexibility and control over financial management.

♦ Receipt Scanning

Many expense tracking apps include a receipt scanning feature, enabling users to easily capture and store receipts for their purchases.

This feature uses a smartphone’s camera to take a photo of the receipt, and the app automatically extracts key details, such as the amount spent and the merchant.

It eliminates the hassle of keeping physical receipts and ensures users have a digital record for expense verification, tax purposes, or budget planning.

Receipt scanning makes tracking effortless and paperless.

♦ Get Thorough Financial Reports and Insights

Expense-tracking apps offer detailed financial reports that give users an in-depth look at their spending trends over time.

These reports analyze various categories, showing how much has been spent and identifying patterns or areas for improvement.

Gaining insights into spending habits, savings, and income can allow users to set more realistic goals and make informed financial decisions.

From getting an overview of monthly expenses or an analysis of yearly trends, these reports help users make smarter, data-driven choices about their finances.

♦ Goal Setting and Tracking

Goal setting is a central feature of many expense tracking apps, allowing users to define financial goals such as saving for a vacation, an emergency fund, or paying off debt.

Once a goal is set, the app tracks your progress over time, providing reminders and milestones along the way.

This feature not only keeps users motivated but also encourages disciplined spending.

By breaking financial goals into smaller, achievable steps, users can make steady progress and feel accomplished when they reach their objectives.

♦ Multi-currency Support

For users who travel internationally or deal with different currencies, multi-currency support comes as a rescue as a valuable tool.

The app automatically converts expenses into the user’s base currency, simplifying the tracking process.

It supports real-time exchange rate updates, ensuring accurate calculations when managing finances across borders.

This feature allows seamless financial management, whether you’re traveling for business, vacationing abroad, or managing expenses from different countries, making it an essential tool for global spenders.

♦ Cloud Backup & Sync

Cloud Backup & Sync ensures that all of your financial data is securely stored and accessible from any device.

If you switch devices or experience a technical issue, the app will automatically sync your data across platforms, preventing any loss of information.

This feature offers peace of mind, as it ensures all records, budgets, receipts, and reports are safely backed up.

Whether using a smartphone, tablet, or computer, users can access their financial data anytime, anywhere from any connected device.

Step-by-Step Development Process of an Expense Tracking App

How to Build an Expense-Tracking App?

Here is a step-by-step guide to the expense tracking app development process that you need to know, let’s get right into it:

Step 1: Idea & Research

First things first, begin by defining the core purpose of the app: tracking personal or business expenses.”

Thoroughly do market research on existing apps to identify features that work well and any gaps in functionality. Understand your target audience and what they need, such as budget setting, reporting, or categorizing expenses.

Make sure to create a user-friendly experience. This phase in expense-tracking app development process will define the scope and set a solid foundation for the design and development phases.

Step 2: UI/UX Design

The next step to build an expense-tracking app is to focus on UI/UX design.

Focus on creating an intuitive layout where users can easily input, view, and categorize their expenses.

Design a simple, clean dashboard that highlights key data like total expenses, categories, and upcoming bills.

Make the app responsive across devices with smooth navigation.

Plus, ensure the color scheme and icons reflect clarity and easy usability. Use design tools like Figma or Sketch to prototype, mobile app wireframe, and refine designs before starting development.

Step 3: Choose Technology Stack

Selecting the right technology stack is important in the development process.

For mobile apps, consider using frameworks like Flutter or React Native for cross-platform development. If you choose native development, opt for Swift for iOS or Kotlin for Android. 

Backend technologies like Node.js or Django can handle data storage, while databases like Firebase or PostgreSQL will store user data securely.

Choosing the right tech stack to create an expense tracking app is crucial. But ensure the tech stack aligns with your budget and scalability requirements to accommodate future app growth.

Step 4: Database Setup

Design & Implement the database structure to store user expenses, categories, and other relevant information.

Create tables for transactions, categories, user profiles, and settings.

Ensure data is stored securely with proper encryption. Consider using cloud databases like Firebase for ease of scaling and security, or a relational database like MySQL if you need more complex queries.

Set up user authentication to maintain privacy.

Plan for efficient data retrieval, such as queries to fetch expenses by date or category for reporting.

Step 5: Development of the App

Start coding the core functionalities: expense entry, categorization, and budgeting. You can consider it the longest & complex process to build an expense-tracking app.

Implement the best features that allow users to add, edit, and delete transactions easily. Integrate expense categories such as food, travel, and entertainment and enable users to create custom categories.

Make sure to incorporate budgeting tools, allowing users to set limits and receive alerts when nearing their budget.

Develop reporting features for monthly or yearly expense overviews, with visual elements like graphs, and charts to present data understandably.

Step 6: Testing

Testing ensures that the app functions as expected across different devices.

Begin with unit testing to verify individual features ex: adding transactions or generating reports. Next, conduct integration testing to ensure different components, like the frontend & backend, work seamlessly together.

Perform usability testing with real users to identify issues in navigation or functionality. Lastly, test the fintech app on various devices and screen sizes to ensure responsiveness.

Address bugs & performance issues promptly to provide users with a smooth experience.

Step 7: Launch & Deployment

Once the testing is done, prepare the app for deployment on app stores Google Play & the Apple App Store.

Ensure the app meets all the store guidelines, including app descriptions, screenshots, and privacy policies.

Create an effective marketing plan to generate interest, leveraging social media and app review sites.

As soon as it is approved, monitor user feedback & app performance closely. Be prepared to release updates for bug fixes, performance improvements, or new features based on user needs and feedback after launch.

Step 8: Maintenance & Updates

After the app is launched, it’s necessary to maintain your fintech app and improve its performance.

Monitor analytics to track user engagement and identify areas for improvement. Regularly update the app to fix bugs and prioritize feature requests based on demand.

Ensure that the app remains compatible with new OS updates and devices.

Stay committed to providing ongoing support to retain users and keep the app competitive in the market.

With this out of the way, there is one question that needs your immediate attention.

How Much Does it Cost to Develop an Expense Tracking App?

On an average, the expense tracking app development cost can be somewhere between $20,000 to $60,000 or more.

The cost to develop a fintech app varies based on different factors including complexity, features & development team location.

Here is a quick breakdown to let you know about the cost:

Remember, this is an estimate, to know the exact cost, you can consult an experienced mobile app development company.

Technology Stack for Expense Tracking App Development

 We discussed so many important things, we felt like talking about the fintech app tech stack is as important as any other.

For an expense-tracking app, the tech stack includes technologies that help build a user-friendly, scalable & secure app. It includes the frontend for user interaction, the backend for data management & the database for storing user data.

Furthermore, cloud services, infrastructure, authentication, and analytics tools are used to enhance the app’s functionality and performance.

Here’s a typical tech stack for an expense-tracking app:

This tech stack supports a modern, feature-rich, and scalable expense-tracking app with secure authentication, easy cloud management, and effective user analytics.

Monetization Strategies for an Expense Tracking App

Building a money management app is only worth it when you implement some monetization model.

After all, if you are investing, you should implement strategies to earn it back along with revenue.

► Freemium Model

Freemium can be a great monetization strategy.

You can provide basic expense tracking features for free, and charge for premium features like advanced budgeting tools, detailed reporting, category customization, unlimited data storage, or integration with other financial platforms.

► Subscription Model

Offer different subscription tiers with varying features & price points based on user needs.

If you want your fintech app to make money, implement different monetization strategies. Consider monthly, quarterly, or annual subscription options.

► In-App Advertising

Advertising is a tried and tested method.

You can display non-intrusive ads like banner ads or interstitial ads.

Target ads relevant to users’ spending habits e.g., credit cards, & investment products.

► Data Monetization

Aggregate anonymized user data to provide insights to financial institutions or marketing companies. Ensure transparency and user privacy by clearly outlining how data is collected and used.

► Affiliate Marketing

Partner with financial institutions or product providers to promote their services within the app.

One can earn a commission when users sign up or make purchases through affiliate links.

► Premium Features

You can offer different premium features that attract users to pay.

Some amazing features include custom financial goal tracking, investment portfolio monitoring, credit score tracking & personalized financial insights.

These are amazing features you should consider when you make an expense-tracking app that can get your user interested.

How Nimble AppGenie Can Make An Expense-Tracking App For You?

The Fintech App Market is filled with different monetization opportunities; all you need is just a great plan and expert hands to leverage it.

To build an expense tracking app, you can take the help of Nimble AppGenie, the best fintech app development company.

From incorporating features like real-time analytics and multi-currency support, to different monetization models, we can do it all for you.

Just Connect Today! Make a place in this competitive market.

Conclusion

The expense tracking app you build should ease the finance management & streamline the expense management process.

You need basic & advanced features in your app that exceed user expectations. Make sure that your app is efficient and dynamic as per the market demand.

Besides that, a good app development company like Nimble AppGenie can sort things out for you. So, be prepared with your idea and connect immediately.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.