The ultimate guide to expense report automation

Manual expense reporting can be slow, messy, and full of errors. It uses up finance teams’ time, opens the door to fraud, and leaves staff waiting to be reimbursed.

Expense automation fixes that. It replaces manual processes with software that handles the heavy lifting. Instead of filling out spreadsheets or attaching receipts to emails, employees can scan receipts with their phones or upload expenses directly into a central platform.

The system then reads the data, applies categories, checks against policy, and routes it for approval. Most platforms integrate with your accounting software, payroll tools, and even your card provider. Everything syncs automatically. That means faster approvals, cleaner records, and fewer hours wasted on admin. 

This guide covers everything you need to know about expense automation, including a run through of the top options available today.

Is automating expense reports worth it?

Manual expense reporting isn’t just tedious. It slows down reimbursements, introduces errors, and keeps finance teams stuck in a loop of chasing people and correcting entries. The longer it takes to process a report, the harder it is to maintain visibility over company spend.

Automation simplifies the whole workflow. Submitting an expense takes seconds. Approvals are triggered automatically. Finance teams get accurate, real-time data without spending their day fixing mistakes. 

What is a business expense report workflow?

Think of a business expense report workflow as the end-to-end journey every pound of employee spending takes inside your company.

It’s a step-by-step process that guarantees business expenses are tracked, verified, approved, and accounted for before the employee is paid back. In a nutshell, it’s where your control over company spending actually happens.

Here's what it typically might look like:

• Step one: The employee makes a business purchase and is responsible for collecting the original proof of purchase (the receipt).

• Step two: The employee manually creates the expense report (usually a spreadsheet) by transcribing details from the receipts. They attach the documentation and submit the package to their manager.

• Step three: The manager reviews the report, verifies the purchases, and grants initial approval.

• Step four: The finance team conducts a detailed audit, checking for missing receipts, adherence to company spending policy, and correct expense categorisation. The report is either officially approved or rejected.

The finance team manually inputs the approved expense data into the accounting software (General Ledger). And, then, the company issues a reimbursement payment back to the employee. This process is why many finance teams are shifting to automation tools that streamline most of the steps.

What to look for in expense report automation tools

As well as digitising receipts, a good automation tool improves control, policy compliance, and integration with your existing systems. Most tools offer mobile scanning using OCR, which means employees can take a photo of their receipt and upload it straight away.

These tools also tag and categorise expenses automatically based on your accounting structure. They detect out-of-policy spending and can flag or reject non-compliant submissions. Approval chains are built in, so expenses get routed to the right person without manual forwarding.

Real-time dashboards let finance teams track spending by employee, department, or region. And when integrated with your accounting system, data flows smoothly without double entry. The best tools also allow card transaction syncing, mileage tracking, and export-ready reports for audits.

Read more: Top 7 expense management software tools for UK companies in 2025

What happens when you automate expense reporting?

The benefits stack up fast. First, accuracy improves. Automated data entry eliminates the common typos and formatting errors you get from spreadsheets. You also get a clear audit trail for every transaction, which is essential for compliance.

Second, the reimbursement cycle speeds up. Employees submit claims quickly, managers approve faster, and no one waits weeks to get paid back. That makes a real difference to morale, especially in fast-paced or remote teams.

Third, you reduce the risk of fraud. With policy checks built into the system and all transactions logged, it becomes harder for rogue claims to slip through. And finally, visibility improves. Finance leaders can spot trends, monitor budgets, and make decisions based on live data rather than chasing reports from the last quarter.

How to reduce manual data entry in expense processing

The issue with the traditional workflow is pretty simple. It almost entirely stems from the need for repeated manual data entry. If you cut this out, suddenly, expense processing becomes a lot simpler.

If your business wants to eliminate manual data entry in expense processing, they should focus on a few key integration points:

• Ditch the typing with OCR: Instead of forcing employees to type out receipt details, use automation platforms with OCR capabilities (optical character recognition). Employees simply scan receipts via mobile apps, and the system extracts the vendor, date, and amount automatically.

• Sync corporate cards: Integrate corporate card transactions directly with your expense software. This creates an automatic feed, instantly syncing and categorising spending and eliminating the need for employees to manually report card transactions.

• Automate compliance checks: Set up automated approval workflows that route claims digitally. This ensures that policy checks (like spending limits and required documentation) are handled by the platform itself, not by a manager manually reviewing every line item.

• Connect your systems: Connect the expense management tool directly to your company’s accounting and ERP systems. This creates seamless, error-free data transfer and reconciliation, immediately updating the ledger and eliminating duplicate entries.

Automating these steps speeds up processing times, improves accuracy, and gives finance teams the real-time control they need, freeing them up from daily admin.

Who should use expense report automation?

Any business that reimburses employees should consider automation. Small and medium-sized businesses often adopt it to save time and avoid hiring more admin staff as they grow. For larger companies, it's about managing volume and complexity across multiple teams and regions.

It’s also ideal for remote and hybrid workplaces. When your team is distributed, you need a tool that lets employees submit claims wherever they are, and managers to approve them without delay. Finance and HR departments benefit too. They can focus on analysis and planning rather than data entry and follow-ups.

From startups ‌to global businesses, automation helps keep expense reporting lean and compliant.

How to set up expense report automation in your business

Start by selecting a platform that fits your company size, workflows, and finance tools. Look for ease-of-use, mobile functionality, support, and integration with your accounting software.  

Once you choose your platform, roll it out gradually. Begin with one team or cost centre, gather feedback, then expand. Make sure your finance policy is updated to reflect the new process. Keep training simple and practical. Most platforms are intuitive, but it's worth giving employees a short walk through or FAQ.

Monitor adoption and success through platform analytics. Track how many reports are submitted, how quickly they’re approved, and whether policy compliance improves. Use this data to fine-tune the process.

Common challenges in expense automation and how to overcome them

Like any new system, automation comes with challenges. 

One of the most common is resistance to change. Employees may be used to the old way and reluctant to try something new. Address this with early communication and quick wins. Highlight how fast reimbursements become and how little manual input is needed.

Another challenge is data quality. If your expense categories, policies, or approval structures are unclear, automation won’t fix the confusion. Take time to clean up your cost centres and set clear rules before rollout.

Integration is another sticking point. If your systems don’t connect well, you’ll be stuck exporting and importing data. Choose a platform with native integrations or flexible APIs that suit your setup.

And finally, keep policies visible. Upload them into the platform or add prompts during submission to reduce errors and confusion.

Top UK expense management platforms in 2025

How Airwallex helps automate expense reporting

Airwallex brings expense automation together with smart global payments. You can issue virtual or physical cards to employees with pre-set spending limits. Every transaction is tracked instantly, and matched with receipts and categories as soon as it hits the system.

It gives you full control over spending, with real-time visibility and custom rules. It integrates with your accounting software, so reconciliations happen automatically. Employees get what they need to work fast. Finance teams keep oversight without constant checks.

It’s simple to scale, easy to manage, and designed for modern teams.

FAQs

What is expense report automation?

It’s the use of software to capture, categorise, approve, and process employee expenses without manual entry or spreadsheets.

Is automating expense reports worth it for small businesses?

Yes. It saves time, reduces errors, and avoids the need for extra admin staff as your business grows.

How do employees submit expenses using automation tools?

Most tools let employees scan receipts with their phone or upload them via app or desktop. The system reads the data and matches it to the right category and card.

Can automation tools detect out-of-policy expenses?

Yes. Many platforms include built-in policy checks that flag or reject non-compliant claims automatically.

Does expense automation integrate with accounting systems?

Yes. Most tools offer direct integrations with platforms like Xero, QuickBooks, and NetSuite for automatic syncing and reconciliation.

How does automation reduce expense fraud?

Every expense is logged, categorised, and audited automatically. This reduces opportunities for manipulation and ensures all claims follow the rules.

What if some team members work remotely or travel often?

That’s where automation excels. It lets employees submit expenses on the go and speeds up approvals, no matter where the team is located.

How long does it take to implement an automation tool?

Many platforms can be set up in a day. Full rollout usually takes 1–2 weeks, depending on company size and how much customisation you need.

What does Airwallex offer for expense automation?

Airwallex lets you issue employee cards with spending controls, track expenses in real time, and automate reconciliation. It combines global payments and expense control in one platform.

What corporate card platforms support automated accounting integrations?

Platforms such as Airwallex, Emburse, Pleo, Spendesk, Rydoo, and Expensify all connect directly with major accounting software like Xero, QuickBooks, Sage, and NetSuite.

These integrations automatically sync expense data, card transactions, and digital receipts, drastically minimising manual entry and reducing errors for finance teams during reconciliation.

Which providers combine employee cards with analytics for team-level spend visibility?

Platforms such as Airwallex, Pleo, Spendesk, Soldo, and Emburse allow finance teams to monitor and analyse expenditure broken down by team, department, or cost centre.

These systems typically deliver features like real-time dashboards, customisable budgets, and clear trend analysis, empowering organisations to increase transparency and proactively manage team budgets.

Disclaimer:  We wrote this article in Q3 2025. The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. If you would like to request an update, feel free to contact us at [email protected].