As National Payroll Week draws attention to the systems that are so vital to business operations, new data reveals a growing challenge for finance and HR teams. It’s not just deciphering receipts that look like they’ve survived a night out, it’s the rise of after-hours expense claims that blur the line between business and leisure. According to James Rowell, founder of Capture Expense, this trend highlights a shift in workplace culture that demands closer scrutiny.
In a recent 2025 expense trends analysis, Capture Expense uncovered:
- 4,400 Uber rides claimed after midnight
- 68% of hospitality and marketing entertainment claims included alcohol
- £1,100 per head in annual entertainment spend by financial services sales teams
These figures reflect a shift in how teams now operate in a hybrid world where client dinners, networking events, and internal socials increasingly spill into personal time, yet still land on the company tab. For finance teams, this shift brings new complexities that they maybe haven’t dealt with before. Vague justifications like “as discussed on email” and receipts stacked with cocktails aren’t just draining to comb through, they’re potential audit risks.
Modernising finance management with AI and automation
As expense claims become more frequent, manual policy enforcement is no longer enough. Finance teams are under increasing pressure to maintain compliance, reduce risk, and ensure that spending aligns with company values and budgets. This is where automation and AI can lend a very helpful hand.
AI-powered platforms are designed to help businesses regain control and avoid spiralling into an expense mess. These platforms can automatically flag vague or non-compliant submissions, identify patterns in entertainment and travel spend, and alerts teams to any expense that don’t look right. This allows finance and payroll teams to move from reactive checks and spreadsheet expense tracking, to a more fluid, automated approach.
Whilst compliance is very important, the data that teams can find through these platforms can offer a deeper layer of insight. Expense trends can reveal how teams interpret policy, engage clients, and manage budgets in a streamlined way. For HR leaders, this behavioural data can help identify changes in culture, and flag areas where policy clarity is lacking.
Why does this matter?
- Policy enforcement at scale: AI ensures consistent application of expense policies, regardless of team size, location, or working model. This reduces human error, eliminates bias, and ensures fairness across hybrid, remote, and international teams.
- Audit readiness: With clearer categorisation and automated checks, finance teams are better equipped to meet compliance standards and respond quickly to audits, saving time and reducing risk.
- Behavioural insight: Real-time access to expense data gives finance and HR leaders a window into team behaviour and spending habits. This visibility helps identify inefficiencies, improve budgeting, and free up time for more strategic tasks, like forecasting, planning, and employee engagement.
As businesses face increasing pressure to tighten budgets and demonstrate accountability, expense data is no longer just about reimbursement, it’s about visibility, control, and culture.
*Research from Capture Expense
