Expense management: How to get it right in 2025

In 2025, expense management isn’t just about keeping costs under control – it’s a business-critical priority. With economic uncertainty shaping business decisions, companies need smarter, faster ways to manage spend without stifling productivity or innovation.

At the same time, the rise of remote and hybrid working models, increased reliance on SaaS subscriptions and decentralised, employee-driven spending has made traditional, manual processes obsolete. Meanwhile, finance leaders face growing pressure to deliver real-time insights, stay compliant with evolving regulations and reduce the risk of fraud and policy breaches.

In other words, it’s a lot to stay on top of.

To navigate this landscape, businesses are turning to AI-powered analytics, automated approvals and mobile-first tools for visibility, control and flexibility at scale. In this article, we’ll explore how to get expense management right in 2025 – and why it’s more important than ever to modernise your approach.

Why expense management matters more than ever

Managing expenses in 2025 is about more than just cutting costs: it’s about protecting cash flow, preserving profitability and staying agile in a volatile market. With rising operational costs. Inflation and supply chain pressures, it’s more critical than ever for businesses to keep tighter control over spending whilst maintaining the flexibility to adapt quickly. 

The thing is, poor expense management is often more expensive than businesses realise. Without real-time visibility, businesses risk cash flow issues, shrinking margins and slower decision-making.

In a fast-moving environment, up-to-date insights are essential for identifying cost-saving opportunities, optimising budgets and pivoting when market conditions change. Without them, leaders are left making decisions in the dark.

At the same time, the nature of expenses has evolved. Remote and hybrid working have introduced new costs like home office equipment, online collaboration tools and cyber security software. Meanwhile, the rise of subscription-based services means businesses now manage a growing volume of small, recurring expenses which, without clear oversight, add up quickly.

To navigate this landscape, businesses need smarter, streamlined expense management processes that provide real-time data, automate approvals and deliver actionable insights to help finance teams stay in control and ahead of the curve.

Key features of modern expense management

Now that we’ve established why expense management is so important, let’s take a look at the key features businesses should be incorporating into their approach in 2025:

• Real-time reporting and analytics: Instant visibility into spending patterns, cash flow impact and budget performance are essential for ensuring finance teams can make faster, data-driven decisions.
• AI-powered spend categorisation and fraud detection: Advanced AI tools automatically categorise expenses, flag anomalies and detect potential policy breaches or fraudulent activity – before they affect the bottom line.
• Mobile-first, employee-friendly tools: Easy, intuitive apps let employees capture receipts, submit expenses and track reimbursements on the go, improving compliance and reducing administrative headaches.
• Integrated policy controls and automated approvals: Built-in policy enforcement and automated approval workflows ensure expenses stay within guidelines, cut down on delays and reduce human error.

Together, these features give businesses greater visibility, tighter control over their spend and the ability to manage expenses proactively – not reactively.

5 tips: How to get expense management right in 2025

Managing expenses well in 2025 isn’t about cutting costs at every turn – it’s about building smarter, more efficient processes that support both financial control and business agility.

With the key features above in mind, here’s how to get expense management right in 2025:

1. Centralise your tools and policies

Disjointed systems and scattered processes mean poor visibility and inconsistent policy enforcement.

By centralising your expense management tools and bringing all spend policies together into a single platform, you can streamline approvals, improve data accuracy and ensure every team is working to the same standards – whether they’re remote, hybrid or on site.

2. Implement real-time data and AI-driven insights

In a world where costs can fluctuate daily, relying on static, end-of-month reports won’t cut it.

Real-time reporting combined with AI-powered analytics helps you track spending as it happens, automatically categorise expenses, flag anomalies and surface actionable insights. This enables you to make faster decisions, keep cost under control and spot potential risks or overspending early.

3. Prioritise the employee experience

Expense management shouldn't be a burden for your people. Equip employees with mobile-first, user-friendly tools that let them capture receipts, submit expense claims and track approvals on the go.

With a streamlined, transparent process, you can improve compliance, reduce frustration and cut down on back-and-forth between teams – it’s smoother for everyone involved.

Looking for an easy way to record business expenses? Check out Pleo’s receipt scanner.

4. Align expenses with strategic business goals

Effective expense management isn’t just about controlling spend – it’s about spending smarter. Make sure your policies and approvals are aligned with your wider business priorities, whether that’s investing in digital tools, supporting sustainable business practices or backing growth initiatives.

Clear visibility into how expenses support strategic objectives helps finance teams make better-informed decisions.

5. Review and update policies regularly

The types of expenses businesses deal with are evolving fast – from remote work costs to new SaaS subscriptions. Regularly review your expense policies to reflect these changes, stay compliant with new regulations and close any gaps that could expose your business to risk.

A proactive, flexible approach ensures your policies remain relevant and effective as your business needs change.

Final thoughts

In 2025, expense management isn’t just about tracking receipts and keeping costs down: it’s about maintaining financial control, enabling smarter decision-making and supporting business agility in an unpredictable market.

With rising operational costs, shifting work models and new categories of spend, businesses need modern, tech-driven solutions that offer real-time visibility, AI-powered insights and a seamless employee experience.

By centralising tools and policies, embracing real-time data and aligning expenses with strategic goals, finance teams can move from reactive cost control to proactive financial leadership.

And by continuously reviewing and refining expense policies, businesses can stay ahead of emerging risks and operational demands.

Ultimately, getting expense management right in 2025 means creating a system that’s fast, flexible and fit for the way modern businesses spend – helping protect profitability today whilst setting the foundation for future growth.