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Card vs. Manual Expenses: Review Process Differences

Discover the unique advantages and drawbacks of using cards versus manual methods for managing expenses through a thorough review process comparison.

Approving an expense doesn’t always mean the same thing, depending on whether it was created from a Factorial Card transaction or submitted manually by an employee.

 

Key differences at a glance

  Card Expenses Manual Expenses
Who paid upfront? Company (via Factorial Card) Employee
Reimbursement needed? No Yes (via Payroll or SEPA)
How is expense created? Automatically drafted from the transaction Manually submitted by employee (web/mobile)
Data source Transaction data (amount, date, merchant) auto-filled + proof required Employee input + receipt OCR prefill
Policy control Preventive: card limits, merchant/category restrictions Detective: policy checks after submission
Approval focus Verify business purpose and receipt Verify correctness, eligibility, and reimbursement

 

Reviewing Card Expenses

  • Faster review: Since card expenses are automatically created and already validated against card limits, your main task is to ensure the receipt is attached and the expense has a valid business purpose.
  • No reimbursement step: Once approved, the expense is simply archived and linked to accounting - no need to process payroll or SEPA.
  • Rejections: If you reject a card expense, the employee and company must decide how the non-approved payment will be reimbursed to the company (for example, payroll deduction or direct transfer).

 

Reviewing Manual Expenses

  • Manual expenses need a closer look since they rely on employee input. Check:
    • Receipt accuracy and validity.
    • Compliance with policies (e.g. per diem rates, mileage rules).
    • Correct allocation to category, project, or cost center.
  • If approved, the expense will proceed to reimbursement (payslip or SEPA).

 

Best Practices for Approvers

  • Prioritize reviewing card expenses quickly - the employee has already spent company funds.
  • Pay extra attention to manual expenses, since these are the ones that trigger real reimbursements.
  • Use Factorial’s expense alerts (out of budget, out of policy) to speed up decision-making.

This way, approvers clearly understand why card expenses are simpler but riskier if rejected, while manual expenses carry reimbursement responsibility.

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