The rise of spend management software: top trends shaping CFO strategies for 2025

CFOs face mounting pressure to control costs, optimize working capital and gain real-time visibility into company spending. As finance leaders take on more strategic roles, outdated expense management practices like manual reconciliations and limited spend oversight are proving inadequate. In response, midmarket companies are turning to modern spend management software to drive efficiency, enforce spending controls and make data-driven financial decisions.

The shift is timely. CFO optimism has surged to its highest level in three years, signaling a renewed focus on long-term financial strategies. At the same time, a Deloitte survey found that 61% of CFOs plan to increase investments in technology to improve financial operations.

A recent Visa report highlights that 72% of midmarket companies plan to expand their use of digital payment solutions to improve working capital efficiency. It also found that businesses leveraging automated spend controls experienced a 28% reduction in unauthorized expenses.

Let’s explore the key trends shaping spend management in 2025 and how finance leaders can leverage technology to stay ahead.

Key spend management trends CFOs need to know for 2025

Strategic use of working capital

Companies are no longer treating working capital as just a short-term cash buffer—they’re using it to drive growth. In 2024, businesses increased their strategic use of working capital by 16% underscoring this shift. Virtual cards and corporate charge cards play a crucial role in this strategy, helping CFOs improve cash flow management, secure early payment discounts and strengthen supplier relationships.

Integrated spend management solutions for real-time visibility

Modern spend management tools offer CFOs real-time spend tracking across departments. By integrating with enterprise resource planning (ERP) systems, these solutions eliminate the need for delayed reconciliation, ensuring budget adherence and reducing financial blind spots. This real-time visibility is critical for controlling project-based and decentralized spending.

Automation to alleviate manual workloads

Manual expense tracking is inefficient and prone to errors. AI-powered reconciliation tools are streamlining processes by automatically categorizing expenses, matching receipts and flagging anomalies. CFOs implementing automation have reported a significant reduction in human errors and an increase in productivity, allowing their teams to focus on strategic financial planning.

At PEX, we simplify the process with automated spend controls and AI-driven reconciliation. Our platform captures and categorizes transactions instantly, ensuring every expense is coded correctly and linked to the appropriate budget. With real-time receipt matching and automated approvals, we reduce the back-and-forth between finance teams and employees, eliminating manual data entry and late submissions.

By integrating with major accounting systems, PEX helps finance leaders speed up month-end close, improve accuracy and gain full visibility into company spending without the usual administrative burden.

Flexibility and control through digital payment tools

Virtual and corporate cards provide CFOs with unprecedented control over company spending. Finance leaders can easily set custom spend controls, deactivate cards instantly and ensure all expenses align with company policies. This level of control not only prevents unauthorized spending but also enhances compliance.

“Instead of a personal card, employees can use corporate cards and virtual payments for all kinds of business expenses, including travel.”
Shaun Boyle, Senior Director of Accounting, PEX

Demand for single-source, real-time financial data

Midmarket CFOs are moving toward centralized data hubs that integrate spend management with cloud-based systems. This shift enables real-time financial tracking, streamlines reporting and provides deeper insights for decision-making. Centralized data reduces reconciliation bottlenecks, ensuring finance teams can close their books more efficiently.

Cash flow optimization and supplier relationship management

Virtual cards are transforming vendor payment strategies by offering early payment discounts, strengthening supplier relationships, and improving pricing negotiations. Some financial solutions provide up to 30 days of free capital, allowing finance teams to manage supplier payments strategically without disrupting cash flow.

Compliance and security in spend management

Regulatory compliance remains a top concern for CFOs, particularly in industries with strict financial oversight. Spend management software helps mitigate compliance risks by categorizing expenses, enforcing policy adherence and automating audit trails. By integrating with ERPs, these platforms ensure transactions align with accounting standards, reducing financial reporting risks and simplifying audits.

The future of spend management

As finance leaders embrace digital transformation, spend management software is becoming a critical tool for achieving financial efficiency and control. By leveraging automation, real-time data and integrated payment solutions, CFOs can drive strategic growth while ensuring fiscal responsibility.

Schedule a personalized demo today and learn how PEX can help your business set up for success in 2025.