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In an era where financial efficiency is paramount, the Center’s fifth annual Expense Management Trends Survey unveils a critical gap in the corporate world. With over 200 finance and accounting professionals contributing nationwide, the results spotlight a growing divergence: the rapid ascent of corporate card usage starkly contrasts with the sluggish adoption of expense management software, heralding a call for integrated solutions to navigate this evolving terrain.

This disparity underscores compliance and visibility challenges and reintroduces familiar hurdles—cumbersome month-end closes, scant user support, and policy confusion—against a backdrop of a shifting work landscape and a resurgence in corporate travel.

The Growing Divide

Data from the survey reveals that while nearly half of the respondents (46%) report a hike in corporate card usage, only 2% have embraced corresponding expense management software. This stagnation in software adoption leaves employees and finance teams grappling with disjointed processes and manual reconciliations, severely hampering productivity.

The adherence to expense management software has barely wavered, hovering between 39-47% since 2021. As identified by respondents, the top challenges for 2024 include the time-consuming nature of expense report filling, difficulties in understanding and adhering to expense policies, and the arduous task of credit card reconciliation. Alarmingly, the average timeframe to close the books has stretched to 14 days, marking an increase from the previous year.

Decentralized Workforces and Business Travel Resurgence

The 2024 work landscape is predominantly decentralized, with forecasts predicting that 32.6 million Americans will work remotely by 2025, accounting for 22% of the total workforce. This decentralization and an expected surge in corporate travel—poised to eclipse pre-pandemic levels—magnifies the complexity of expense management. An astounding 91% of respondents anticipate stable or increased travel expenditures, highlighting the urgent need for tools that offer visibility and control over employee spend.

Policy Disconnects and Compliance Challenges

The survey reveals a troubling disconnect between employee spending behaviours and expense policies, with a notable rise in bookings off-platform and only 32% of businesses tightening their policies. This gap signals a pressing need for more transparent processes and robust software solutions to unify travel and day-to-day expenses under a single, automated policy application framework, ensuring swift approvals and immediate flagging of policy violations.

Despite the dynamic macro-environment, fewer companies now boast a written, consistently maintained expense policy, with a 10% decrease from two years ago. The hurdles of employee understanding and policy awareness remain prominent, with one-third of respondents admitting to outdated policies and 22% lacking any written policy.

Forward-Thinking Solutions

The findings from the Center’s annual survey underscore an imperative for businesses: to bridge the widening gap between corporate card usage and expense management software adoption. By embracing integrated solutions that cater to the nuances of today’s dynamic work environment and the intricacies of corporate travel, companies can enhance compliance, streamline processes, and, ultimately, foster a more productive and transparent expense management ecosystem.

For a deeper dive into the state of travel and expense management in 2024 and to explore actionable insights for your business, download the full report here.