Expense reporting software 101: How to choose the best solution for your organization

Software rollouts are really tough on organizations of all sizes. They’re expensive, time-consuming and disruptive – even with the promise of big benefits. 

Among the many challenges are rollout delays, hidden fees, problems with user training, low adoption and misalignment between sales and launch teams. So it’s no big surprise that companies frequently choose the wrong software.

According to Gartner’s Digital Markets 2024 Tech Trends report, almost ⅔ of responding B2B software buyers said they regret their software purchases. And that’s not for lack of due diligence: the same report found that 96% of respondents created a list of software platforms before making a purchase.

Unfortunately, these mistakes in software purchasing can have massive side effects. More than half of reporting companies in Capterra’s 2024 Tech Trends survey said they experienced a considerable financial loss from a software purchasing mistake – with over ⅓ believing that it negatively impacted their competitiveness.

In order to choose the best-fit expense reporting software, organizations need to evaluate their options carefully. The goal is to find the right platform on your first try – and save your company lots of headaches in the process.

Why efficient expense reporting matters

Many organizations still do expense reporting manually, using a combination of paper forms, spreadsheets and email.Though these processes still get the job done, they can cost companies in ways that aren’t immediately apparent. 

Finance teams and employees spend copious amounts of time on manual expense work – time that could be used on higher-priority activities. Manual processes are prone to both high error rates and expense fraud and they provide zero visibility to finance leaders (other than a backwards view).

And there are other side effects. Time-consuming manual work can contribute to low employee satisfaction and delay or non-compliance with regulatory requirements. And the lack of time, worries about errors and absence of visibility remove any bandwidth finance leaders might have to drive the strategic direction of the organization.

Finance leaders and their teams need to increase efficiency as much as possible. They should focus their time forecasting, identifying spend patterns, preventing budget overruns – and dealing with expense reporting workflows on an exception-only basis. They need to find the optimal expense management software for their needs, using a careful evaluation process.

How to evaluate expense management software

1. Map out your current expense management process. Before looking at expense reporting software, it’s critical to understand your company’s current process – no matter how manual it is. 
   
   You’ll need to learn the workflow for employees who make purchases, and any differences between departments or types of purchases. You’ll also need to understand the workflow for finance teams and how they manage expense reporting. 
   
   It’s important to understand exceptions as well. What happens when an employee goes over budget or makes out-of-policy purchases? How does the finance team handle missing details like GL codes and transaction details? Make sure you know all of your current use cases. 
2. Gather stakeholder input on the biggest process gaps. As you are documenting your expense reporting workflows, you’ll be talking to various groups at the company. Take their feedback as well. Ask questions like:

• What are the biggest time-sucks, and why do they take so much time?
• What are we unable to do today with our current process?
• If you could create your ideal scenario for expense reporting, what would it be?
  
  The answers to these questions will help you understand what’s missing – and what your company needs from expense reporting software.

3. Determine your must-haves and create a requirements list. Armed with both your expense management processes and stakeholder input, you’ve got all the data you need to make your requirements list.
   
   Keep this list as simple as possible, and make sure to include the “why” behind each requirement. It will trigger your memory when you start evaluating platforms. And it will help inform the sales process. For example, if many of the requirements relate to time savings, the sales team you work with will know that and possibly show you other time-saving options that you hadn’t thought of.
   And this list can include “nice-to-haves” in addition to requirements. You never know – your nice-to-haves might already be available with some of the expense reporting tools.

4. Look for recommendations from peers and online feedback. The idea of searching for expense reporting software may seem overwhelming. Just looking at G2, there are 378 listings for expense management (!).
   
   Narrow down your options by asking peers what they use and checking out any feedback you find online. You might start by pinging your LinkedIn network and asking in any private finance communities you belong to. G2, Capterra, TrustPilot and Software Advice all offer reviews of B2B software. Reddit threads can be helpful as well – and brutally honest.

5. Include key stakeholders in the evaluation process. Once you’ve got a handful of expense management tools from your research, you can create a short list. Check out their websites and schedule demos for more details.
   
   In those demos, make sure to include 1-2 employees for each type of user profile. Ask the sales team to show you a sample workflow for an employee submitting an expense report, a finance manager processing that expense report, and finance leader reviewing spending patterns. These workflows will show different team members what their experience will be like with the platform. And they can help you decide which tools to continue evaluating and which to discard.
6. Determine costs and ROI before choosing a winner. You’ll probably be looking at price tags as you demo each platform. There could be several that are a fit, but in different price ranges.
   
   It’s important to weigh both the cost of the platform and the ROI you’ll get from it. How much time are you spending on manual processes today, and how much do you expect to save with the new platform? What have errors and expense fraud cost you in the last year, and what are your expected savings? Make sure you know the “before” state for any expected ROI so you can demonstrate value and continue to justify your software purchase.

Key features to look for in expense reporting software

• Unique market fit: Look for expense reporting software that serves companies of your size, in your industry and your price range. If you’re a small to medium business, the type of expense reporting tool that’s best for you has very different features than one for a large company. The same goes for industry fit – non-profits, for example, have unique reporting requirements that some expense management platforms may support.

• Efficiency: The biggest gap in expense management for most finance teams is efficiency. When evaluating platforms, it’s critical to eliminate as much manual effort as possible. Look for automations that take the place of manual work, like capturing receipts, pre-programming GL codes, automating approval workflows and using AI to match receipt and transaction data.

• Control: Another common challenge for finance teams is lack of control over spending. They have to deal with out-of-policy spend and expense fraud after it happens. Look for expense reporting tools that give finance teams control before spending takes place, with features like spending limits, card blocking, merchant restrictions and pre-approved spending.

• Flexibility: Expense reporting software frequently comes with payment options for employees. For any platform you choose, it’s best to have a variety of options, including corporate credit cards, prepaid cards that you can reload, virtual card numbers that are quick and easy to generate and fast employee reimbursements.

• Security: Expense reporting tools you should have the latest in payment security, including PCI DSS 4.0 and SOC II Type 2 compliance. In addition, it’s critical to have your IT team perform a full security evaluation of any platform you’re considering. They’ll be able to tell you if it meets all the organization’s security requirements.

• Customer support: This one is a little harder to tease out until you’ve made your software purchase, but you can get an idea. Search reviews online for customer support and see what comes up. Ask anyone you know who uses the platform what their experience is with customer support. And ask the sales team you are working with for SLAs and turnaround times for inquiries.

Expense reporting software evaluation checklist

8 steps to find your best-fit expense reporting platform
Step 1: Map your current process – Document how employees currently submit expenses – Identify differences between departments or spending types – Note exception workflows (over-budget, out-of-policy, missing data) – Capture how finance teams review, approve and reconcile expenses Why it matters: Understanding your current workflow exposes inefficiencies and highlights where automation can have the biggest impact.
Step 2: Gather stakeholder input – Interview employees, managers and finance staff about current pain points – Ask what tasks take the most time or cause the most frustration – Identify what’s missing in today’s process and what “ideal” looks like Why it matters: Input from daily users ensures the new solution actually solves real-world problems, improving adoption.
Step 3: Define your requirements – Create a simple must-have and nice-to-have list – Include the “why” behind each requirement (time savings, compliance, etc.) – Align requirements with company goals (growth, audit readiness, control) Why it matters: A clear requirements list keeps the evaluation focused and avoids feature overload.
Step 4: Research and shortlist vendors – Ask peers or network contacts for recommendations – Read reviews on G2, Capterra, or Software Advice – Narrow down to 3–5 vendors for demos Why it matters: Real-world feedback helps you avoid platforms with hidden fees or poor adoption rates.
Step 5: Include key stakeholders in demos – Invite representatives from each user group – Ask vendors to walk through a complete workflow (employee → manager → finance) – Capture feedback from each stakeholder after demos Why it matters: Seeing how each team interacts with the software reveals usability issues early.
Step 6: Evaluate costs and ROI – Compare subscription, setup and training costs – Estimate time savings and reduction in manual tasks – Calculate expected ROI based on reduced errors, faster close, and labor savings Why it matters: A platform’s value is in measurable outcomes, not just features.
Step 7: Review security and compliance – Confirm PCI DSS 4.0 and SOC II Type 2 compliance – Involve IT to assess data security and user permissions – Check for secure integrations with your accounting or ERP system Why it matters: Finance data is highly sensitive—security gaps can undo all other benefits.
Step 8: Assess flexibility and support – Verify card and payment options (credit, prepaid, virtual, reimbursements) – Review SLAs, onboarding support and help response times – Confirm scalability as your organization grows Why it matters: The best software adapts with your team and provides support when you need it most.

How PEX simplifies expense management and improves control

PEX’s expense management platform uses automation and AI to increase efficiency, control and visibility. Our automations eliminate the manual data entry associated with expense tracking. Customizable controls enable admins to set spending limits, category restrictions and approval workflows. 

Our customers can auto-sync their expense management data with accounting systems for faster reconciliation. They can create unlimited virtual cards for employee use, maintaining budget control and reducing fraud risks. And employees get faster reimbursements without the need to limit spending.

Want to know if PEX’s expense reporting software is a fit for your organization? Contact us today for a customized demo.