What is Expense Management Software?

Expense management software refers to solutions that process, pay, and audit employee-initiated expenses, such as flights, car rental, lodging, meals, laundry, business calls, and shipping of work-related items. This type of software shares some similarities with spend management—which plans and monitors procurement expenses such as raw materials, business services, or investments. Employees can manage expenses in multiple ways, from receipt scanning mobile apps to enterprise software that covers travel policies, approvals, expense tracking, and travel cost management. What Types of Expense Management Software Exist? Some accounting software and ERP systems include basic features for expense management, which are usually insufficient for companies with many mobile employees. These systems can be used to consolidate expense management data but aren’t a good option for expense approvals, tracking, and monitoring. Standalone Standalone expense management software exists separately from other systems. This type of software focuses exclusively on managing expenses and provides little or no functionality for travel management. Vendors usually offer integration with travel management software, ERP systems, and accounting software. Travel and expense Expense management software can be part of travel and expense solutions, either as a separate module or delivered as a package that can only be bought and used as one system. Vendors who provide separate modules or products for travel and expense management also tend to combine them in suites for companies that need both types of features.

What are the Common Features of Expense Management Software?

The following are some core features within expense management software that can help users categorize their expenses, finetune their workflows, and create expense reports, to name a few. Expense reports: To get reimbursed, employees need to create expense reports and provide information on each type of expense, the amount, and the date. Receipts need to be included in expense reporting so that managers and accountants can have proof that the employee spent the money they request reimbursement for. Expense report forms typically have predefined fields that allocate expenses by type, department, or business unit. Expense categories: Companies need to categorize business expenses to better organize company spend, such as travel, office supplies, and team outings, while also optimizing the tracking of these costs. The main categories used by companies are transportation, meals, accommodation, moving expenses, and work-related services (such as business calls or laundry cleaning). Companies also need to differentiate between tax-deductible and non-deductible expenses. According to the IRS, expenses are deductible if they are used for business and work. The portion of the expenses used for personal purposes is usually nondeductible. Sometimes companies may decide to cover some personal expenses to improve employee satisfaction. Approval workflows: Travel expenses need to be approved by managers to be processed and reimbursed. In some cases, accountants also need to approve expenses (for instance, a moving expense of $10,000 will need to be approved by managers and accountants before being processed). To define who needs to approve what types of expenses, expense management software provides workflows for determining the steps of the approval process. Standard approval workflows are usually delivered out of the box but can be modified by companies according to their specific needs. Payment integration: Expense reimbursements are made through money transfers directly to the bank account of the employee. Companies need to manage various types of payments, such as cash advances and partial payments. It is also essential to adjust payments when errors occur and employees are reimbursed the incorrect amount. Since most expense management systems do not provide advanced features for payments, it is critical to integrate with payment gateway software and other payment processing solutions. Analytics: Expenses transactions generate a lot of data that needs to be analyzed to determine inaccuracies and trends. Expense analytics helps managers monitor travel spending at different levels of the company. Accountants also use analytics to forecast future amounts and take them into account when creating budgets. Other expense management software features: Automated Reminders, Credit Card Integrations, Currency Conversion, Itinerary Management, Offline Capabilities, PCI Regulation Compliance, Policy Compliance, Receipt Capture, and Trip Notifications.

What are the Benefits of Expense Management Software?

Decrease travel costs and processing business expenses: Expense management software streamlines the reporting and approval process, which allows companies to easily track employee expenses. This in turn allows organizations to ensure that they are getting the best value from their travel and employee-related expenses. Reduce expense errors: This software automates several of the steps involved in the tracking, reporting, and submitting of expenses, which reduces the amount of human involvement. Even though it’s probably in a company’s best interest to still review work completed throughout the workflow, this automation reduces common errors that are committed by humans. Ensure employee and manager expense-related accountability: The tracking of expenses and the “paper trail” that is created, allows companies to make sure their employees are held accountable for their purchases and that expenses are in compliance with company policies. This feature also helps to prevent employee overspending and unauthorized reimbursements. Facilitate transparency of expense policies for employees, managers, customers, and investors: The reporting and analysis capabilities of this software allow all stakeholders an instantaneous view into employee-related expenses and the policies that they should abide by.

Page 15 | Best Expense Management Software: User Reviews from October 2026

Factorial

Factorial is the AI-powered business software that connects everything you need to manage your team. It takes care of the time-consuming (and energy-draining) stuff, like hiring, holidays, and payroll, giving leaders more time to focus on their people. But it’s not just about automation. It co-creates with managers on the bigger things, too, like reports, surveys, and workflows, so their work can shine. Real-time insights help them take decisions led by data, not gut feeling, to make even more impact. It’s easy-to-use and intuitive, so anyone on the team can jump in!

Average Rating: 4.4/5.0

Total Reviews: 100

How Do G2 Users Rate Factorial?

Has the product been a good partner in doing business?: 8.9/10 (Category avg: 8.9/10)

Who Is the Company Behind Factorial?

Seller: Factorial
Year Founded: 2016
HQ Location: Barcelona
LinkedIn® Page: www.linkedin.com
2,979 employees on LinkedIn®

Who Uses This Product?

Top Industries: Information Technology and Services, Marketing and Advertising
Company Size: 56% Medium, 44% Small

What Do G2 Reviewers Say About Factorial?

AI-generated summary from verified user reviews

Pros

Users find Factorial to be easy to use and appreciate its comprehensive and user-friendly interface for employee management.
Users value the comprehensive features of Factorial, providing an integrated solution that meets diverse business needs effectively.
Users value Factorial for its robust alignment with labor regulations and seamless integration with other systems.
Users find Factorial's intuitive design enhances navigation and management of complex HR processes, streamlining operations significantly.
Users appreciate the easy tracking capabilities of Factorial, which streamline HR management and ensure compliance with regulations.

Cons

Users find the payroll module lacking in reliability and depth, often needing external tools for accuracy.
Users highlight limited payroll features in Factorial, requiring reliance on external tools for accurate processing.
Users find that Factorial has limited customization options, impacting the effectiveness and adaptability of the platform.
Users report limited payroll options with Factorial, necessitating reliance on external tools for accuracy and reliability.
Users experience module issues with payroll and software functionality, lacking depth and reliability compared to dedicated solutions.

What Are Recent G2 Reviews of Factorial?

"Streamlined HR Processes, Manual Data Sync Needed"

Rating: 4.5/5.0 stars

— Elara V.

Best Expense Management Software - Page 15

How Many Expense Management Software Products Does G2 Track?

Category Stats (Oct 2026)

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G2 Grid® for Expense Management Software

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