Travel and expense management software fit-gap analysis and assessment checklist

Expense management software is not just a tool to improve employee experience and productivity, but a strategic asset that empowers businesses to gain control and save money. The tool plays a key role in the overall spend management strategy of any organisation. So, it's imperative for any business to have an automated expense management software as part of their finance suite. 

Why businesses need a dedicated T&E system—not just ERP or HR modules

In today's scenario, a Travel & expense management software is used by organisations sometimes as part of their accounting ERP, or a HR suite. The features in those suites may functionally serve the purpose, but a dedicated expense management software serves the organisations well who consider a Travel & Expense Management software as a strategic asset rather than a "digital transformation tool".  For businesses  still using manual expense management processes and want to switch to an automated software, here is the Ultimate Guide to Choosing the Best Expense Management Software for Your Business.
 

While few businesses lean on their ERP or HR platforms to manage T&E processes, these generic systems often fail to meet the unique and complex requirements of medium to large businesses. Travel and expense are not just another business function—it's a compliance-intensive, policy-sensitive operation that demands precision, flexibility, and ease of use. 

Here's why a dedicated T&E platform is not just beneficial but essential.

Purpose-built functionality that goes beyond the basics

Generic ERP or HR modules lack features tailored to the nuances of business travel. A dedicated T&E system offers:

1. Mobile-first expense capture.
2. Automated receipt scanning with multi-language support OCR and other third-party integrations for reduced manual entry.
3. Per diem policy automation based on location and funding type.
4. Built-in travel policy enforcement to ensure compliance before the spend occurs.
5. Automatic mileage tracking which makes sure that the mileage reimbursement claims are done accurately every single time.
6. Built-in AI features that track expenses, audit, and analyse to replace routine tasks and reduce administrative tasks.
7. User-friendly interfaces with intuitive, quick, and accessible features
8. Custom approval workflows for complex hierarchies
9. Real-time budget tracking, which helps to manage spends before they happen
10. Real-time spend visibility with built in AI powered analytics
11. Advanced audit trails for every transaction, including receipt data and exchange rate tampering.
12. Scalability and flexibility to manage transaction volumes when the organisations grows to a larger scale.

These features drastically reduce errors and improve processing speeds—something ERPs simply weren't built to do.

Why should businesses do a fit-gap analysis for their current travel and expense management software?

Businesses should do a fit-gap analysis of expense management at regular intervals. This process ensures if the current software continues to meet evolving business needs, compliance requirements, new technology trends and user requirements as the company grows or changes. 

How can organisations assess that their existing T&E software fits their current need?

Here’s a structured checklist you can use as per your requirement— annually or once in two years:
 

1. Business Alignment

• Does the software support current business policies (T&E limits, categories, workflows)?
• Do businesses need a self-booking tool for travel? or can it be handled offline?
• Is the budget vs. actual T&E spending in line with the organization’s guidelines?
• Do we need to reduce/ optimize business travel costs?
• Has the organizational structure changed (new departments, roles)?
• Do current approval workflows reflect the latest organization hierarchy?
• Are there new expense categories that need to be tracked?

2. User Experience and Adoption

• Is the software easy to use across all employee levels?
• Are there frequent support requests or complaints from users?
• Are employees using mobile/web versions effectively?
• Is training or onboarding material up-to-date?
• Are there complaints regarding application loading and speed?

3. Policy and Compliance

• Are current travel/expense policies fully enforced through the platform?
• Are audit trails and logs sufficient for internal/external audits?
• Are compliance reports (tax, audit) generated accurately and timely?
• Are regional and international compliance needs being met?

4. Integrations

• Are integrations with ERP, HRMS, payroll, and accounting tools still working efficiently?
• Are there any new tools, such as card providers, travel booking tools, rideshare apps, etc., which need to be integrated?
• Are APIs or data syncs performing reliably?

5. Automation and Intelligence

• Are any new automation capabilities like real-time card transaction fetching, automatic mileage tracking, report automation, or per diem automation missing?
• Are you using an additional software for the features that can be part of the T&E tool?
• Are auto-approvals, mileage tracking, and receipt scanning accurate and optimized?
• Can users set and follow custom rules and policies without manual interference?
• Are there any AI-powered fraud detection tools or anomaly alerts employed?

6. Reporting and Insights

• Are dashboards and reports aligned with CFO/finance team KPIs?
• Are real-time insights helping identify cost leakages or optimization areas?
• Are your reports delivering actionable insights powered by AI?
• Is it easy to generate quarterly/year-end spend summaries?

7. Security and Access Control

• Are there any major data related concerns?
• Are role-based access controls configured correctly?
• Is data encrypted and securely stored per compliance norms?
• Are inactive users regularly deactivated?

8. Scalability and Customization

• Can the platform support more users, departments, or geographies?
• Are customization features (fields, reports, workflows) sufficient for evolving needs?

9. Vendor Support and SLAs

• Are you getting timely support from the vendor?
• Are SLAs being met?
• Has the vendor released product updates or new features you aren’t leveraging yet?

10. Cost vs. Value

• Are you getting ROI for the cost paid?
• Are there unused features/modules?
• Is the pricing plan still optimal?

User feedback survey:
Apart from the above assessment checklist, businesses can do a feedback survey with all their stakeholders and add it to the assessment results.