Smarter expense management: protecting public funds in a remote work era

In the public sector, financial accountability is of paramount importance for finance teams. Every expense must be clearly documented, every process open to scrutiny, and every system must be capable of standing up to audit.  

According to the ONS, 40% of UK workers currently work remotely in 2025, which is made up of 14% full-time remote workers and 26% hybrid workers. Following the embedding of remote and hybrid work across government departments and local authorities, the challenge of managing expenses securely has grown. What was once a straightforward administrative task now demands smarter tools, and tighter controls, to keep pace with evolving risks and expectations. 

The introduction of the Economic Crime and Corporate Transparency Act in 2023 has only sharpened the focus on financial governance. Designed to tackle financial crime and improve corporate accountability, the legislation places greater demands on organisations to maintain accurate records while demonstrating more robust internal controls. For public sector finance teams, this means ensuring that every expense claim is not just valid, but also traceable, policy-compliant, and defensible under audit.

From manual oversight to intelligent systems

Despite these rising expectations, many organisations still rely on outdated systems. Research found that 50% of businesses are still relying on manual processing, a method that’s not only time-consuming, but can also be vulnerable to errors and fraudulent activity. In remote working environments, where expense claims are submitted from multiple locations and devices, the lack of central oversight can lead to duplicate submissions, non-compliant claims, and missed opportunities for cost recovery. These inefficiencies do not just waste time, they can expose organisations to reputational damage and regulatory risk. 

Many legacy platforms were designed for office-based workflows, not for mobile-first or hybrid teams. This disconnect can lead to poor adoption, inconsistent data, and increased friction between departments. In contrast, systems that can integrate with familiar tools – such as messaging platforms or collaboration apps – are proving to be more effective at maintaining compliance than legacy systems. 

Additionally, intelligent systems can deliver real-time visibility, enabling finance leaders to see expense activity as it happens, not weeks after the fact. This allows for faster decision-making, early detection of anomalies, and more accurate forecasting. It also supports a stronger audit trail, which is essential in public sector environments where scrutiny is high, and transparency is non-negotiable. 

Embedding expense governance into public sector culture 

Although research found that the public sector spends less on technology than peers, we are seeing a continued growth of the modernisation and digital transformation of core business functions, including finance. Alongside this, we’re seeing a growing recognition that expense governance must be embedded into the culture of an organisation. This means moving beyond reactive compliance checks towards proactive financial stewardship. It involves training staff on policy expectations, designing workflows that encourage transparency, and ensuring that finance teams have the tools at their disposal to act quickly and decisively when issues arise. 

It also means recognising that expense management is not a standalone function. It intersects with HR, sustainability initiatives, procurement, and IT. When these departments collaborate, the result is a more cohesive and resilient organisation – one that can respond to change, manage risk, and deliver value to the public. 

Expense management as a strategic lever 

Expense management is no longer just an operational task - it’s a strategic tool. Public sector organisations are increasingly aligning expense processes with broader goals like sustainability and workforce wellbeing.

For example, carbon tracking features within expense systems help monitor the environmental impact of travel, supporting ESG reporting and ethical governance. Smarter platforms also improve employee experience: faster reimbursements and transparent policies foster trust between staff and finance teams. In fact, 41% of employees report frustration over delayed expense reimbursements, highlighting the need for efficient systems.

Real-time expense data further supports strategic planning. Finance leaders can analyse trends, forecast costs, and make evidence-based decisions—critical in tightly controlled public sector budgets. If a council is reviewing travel spend, for instance, detailed insights into train fares versus car mileage can guide fairer, more cost-effective policies.

A smarter way forward

As the public sector continues to adapt to new ways of working, the systems that support financial governance must evolve too. Expense management may once have been as a routine administrative duty for finance teams, but now, it sits at the crossroads of compliance, efficiency, and strategic insight. With the right tools and processes in place, finance teams can not only reduce risk and improve transparency, they can actively support better decision-making across their organisation. 

With heightened scrutiny and limited resources, that shift is not just welcome – it’s essential. Smarter expense management is not about technology for technology’s sake. It’s about protecting public funds, building trust, and enabling public sector organisations to operate with confidence and integrity.