What billing options are available for the Collect plan, how do they work?

applecartapplecart Posts: 1Expensify Customer
edited May 2 in Getting Started

Hello,

My company is interested in moving from our accountant managed Expensify plan to one managed internally by our team. As a result we will have to opt into one of Expensify's pricing tiers - specifically the 'Collect' tier.


My question is whether you are charged by the number of users enrolled per month, or are you charged by the number of users who actually use Expensify that month? (IE. are charges based on all enrolled, or simply the number of employees who use the product per month).


Thanks!

Answers

  • Sheena TrepanierSheena Trepanier Posts: 1,908Expensify Success Coach - Admin Expensify Success Coach
    edited May 2

    Hi @applecart, welcome and great question!

    The short answer is you'll incur active user charges for employees that use Expensify in a given month. You are not charged based on the number of members in your policy.

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    The longer version will depend on which billing option you choose; Annual Subscription or Pay-Per-Use.

    There are two options for pricing on the Collect plan. I'll cover them both in more detail and if you have any follow up questions I'll be happy to help.

    Pay-Per-Use

    Choosing the Pay-Per-Use billing option means you only incur a monthly charge for an employee's activity if they use Expensify in that given month. The official term is "active user," and that is defined as anyone who creates, edits, submits, approves, exports, or reimburses expenses on the company policy. In essence, if you take any sort of action on an expense tied to the policy, you're an active user.

    This option gives you the max amount of flexibility and you're charged $10 per month for each active user on your company policy. You can cancel your account at any time and delete the policy downgrading to a free account.

    Annual Subscription

    On the other hand, the Annual Subscription rewards those who commit to Expensify by offering them a 50% discount on the per month active user cost. The way this works is you set a subscription amount that you're committing to for 12 months. The amount you set should equal the average number of active users you expect to have each month for that 12 month period.

    Each month you would see a bill for the subscription amount, let's use 10 as an example, multiplied by the discounted active user rate; 10 x $5 = $50 per month. If you ever have a month with more active users than you committed to, you choose to pay for their usage at the higher $10 rate (one time) or add them to your subscription amount permanently. If you add to your subscription amount your next month would be for 11 active users and your annual term would reset for a fresh 12 month period.

    With an Annual Subscription you can cancel or lower your subscription amount, however you're required to pay back the discount you received during the elapsed months on your subscription.

    For example, let's pretend I have an Annual Subscription for 10 active users and after two months I decide I want to cancel it completely. The early termination fee I'd receive would be two months, multiplied by the number of active users (10), multiplied again by the discount I received ($5). The math looks like this; 2 x 10 x $5 = $100 early termination fee + $100 I've already paid = $200. If I had been on the Pay-Per-Use plan all along, I would have paid the same amount over the course of two months; 2 x 10 x$10 = $200.

    How to decide what's the best fit?

    It's best to start by asking a few questions and really thinking about your use case.

    1. How many employees submit expense reports each month?
    2. How many managers or admin need to approve or export the submitted reports?
    3. Are there any months when I can expect more expense reports than normal?
    4. Do I expect to grow the number of employees who need to submit expenses?

    Knowing the above will help you determine which of the billing options will fit your needs. If you see dramatic jumps and drops in the number of active users you'd expect each month, it may be difficult for you to set an Annual Subscription. If so, let's chat about it.

    Perhaps you love the freedom of canceling at anytime so a Pay-Per-Use billing method is a better fit. Either way I hope the info above brings you some clarity and helps you with the decision making process.

    Cheers!

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