Why Legacy Expense Tools Failed to Modernize Finance

And that was real progress. These tools brought structure, automation, and a sense of order to expense reporting. CFOs and Controllers could finally point to neat dashboards instead of manila folders.

But here’s the truth no one likes to admit: those gains stopped short. Expense tools digitized admin, but they never modernized control.

The promise delivered

Let’s give credit where it’s due. Expense software made things:

• Faster to submit.
• Easier to track.
• Cleaner to report.

It reduced friction for employees, eliminated some manual work for finance, and transformed paper chaos into tidy workflows.

But the work stopped there.

Why legacy expense tools failed to modernize control

The biggest problem in finance wasn’t the paperwork; it was timing. Data still flows in days late through bank feeds and statement uploads. Finance teams still only discover overspend after the books close.

Every US finance leader I meet agrees,” says Catie O’Gara, Country Director, US at Payhawk. “Digital tools solved admin, but they didn’t fix the timing gap. That’s why finance still feels reactive, even in 2025.

So yes, the reports look neater. But neat doesn’t equal proactive. And neat doesn’t stop out-of-policy spend from happening in the first place.

The real cost of delayed spend visibility

The result is what many CFOs describe as false comfort. Reports look good, but the business still suffers from:

• Overspend no one caught in time.
• Delayed forecasts because data trails reality.
• Month-end stress as teams scramble to reconcile.

Finance got efficiency in reporting, but not effectiveness in control. When spend visibility lags behind reality, forecasting accuracy drops, liquidity planning suffers, and teams lose the confidence to make fast, data-backed decisions. In a volatile US market, that’s more than an inconvenience, it’s a competitive disadvantage.

What’s different now

The pressure on finance teams has shifted dramatically. With real-time payment rails, embedded finance, and AI-driven audit automation reshaping how money moves, finance leaders can no longer afford systems that operate on end-of-month cycles. The next generation of spend management isn’t about efficiency, but about agility.

Modern spend management doesn’t stop at tidier reports. It gives finance the ability to see spend as it happens and prevent problems before they occur. That means no more waiting for delayed data, and no more discovering overspend weeks after the money’s gone.

Instead of reacting to statements after the fact, finance leaders can set rules that keep spending in check automatically, whether that’s blocking certain types of purchases, enforcing budgets in real time, or routing approvals the moment a payment is attempted.

This is the leap from digitization to modernization: moving from systems that simply record spend to systems that actively shape it.

How finance can modernize control without switching cards

Finance leaders in the US have long-standing credit lines and banking relationships they can’t afford to disrupt. In a recent survey by Payhawk across over 1000 finance executives, 84% of US respondents stated that they value their bank-relationship over potential efficiency gains from adopting a fintech solution. However, the issues with lack of spend visibility and control still persist. And this is why Payhawk built a new approach: providing real-time spend visibility and proactive control without forcing a card switch.

Through Payhawk’s card linking, transactions stream directly from the networks in real-time, rather than days later through bank feeds. And with controls on linked cards, finance can block certain purchases, enforce budgets, and trigger approvals automatically, all on the corporate cards the business already uses.

You keep what works: perks, terms, credit, and upgrade the layer that hasn’t kept pace.

The question I hear most often is, ‘Do we have to change our cards?’” says Catie O’Gara, Country Director, US at Payhawk. “And the relief on people’s faces when I say no — that tells me how big this barrier has been.

Closing thought

Expense tools were a step forward. But they weren’t the finish line. They digitized reporting, they didn’t modernize finance.

Finance has earned its seat at the strategy table. But it’s hard to lead with insight when your data trails behind spend. Modernizing this last mile of visibility means finance can finally shift from being the department of ‘no’ to the driver of smarter growth.

Now, US finance leaders have a way to close the gap those tools left behind. Real-time visibility. Proactive control. Continuity intact. That’s the next leap. Curious to find out how US finance teams are moving from neat reports to real-time control, without switching cards? Book a demo with one of our experts to learn more.