Travel and Expense Management for Software and Technology Companies

What should a software company look for in T&E software?

In a software company the control problem is mostly software, not travel. Five things matter.

What you need	Why	In ExpenseOS
Control of software subscriptions	Zylo's 2026 SaaS Management Index: SaaS bought on cards and expense reports rose 267% in a year, the median company spends $9,455 per employee on SaaS, and 36% of licenses go unused.	The pack's software rule asks people to check the company doesn't already pay for a tool, a manager approves any charge over $1,000, a year's plan included, and a tool two or more people pay for moves to a company plan.
Equipment that goes through IT	Hardware is an IT and accounting decision: under the IRS de minimis safe harbor, items up to $2,500 each ($5,000 with audited statements) can be expensed when your book policy does.	Equipment up to $2,500 an item, the de minimis line, and IT approves computers, phones and tablets before anyone buys.
Reimbursement where states require it	California Labor Code 2802 makes employers reimburse necessary business expenses, including a reasonable share of a personal phone used for work, and Illinois and several other states have reimbursement laws too.	People are paid back the minute an expense clears policy, to their own wallet.
Travel that stays planned	Fares cost about 26% more booked 13 to 7 days out than in the cheapest window, 74 to 21 days out (CheapAir).	Flights, hotels and cars are searched and every result is checked against the policy, with the rule named, before anyone books.
Speed for the team	Teams pick their own tools, and a sign-off on every small purchase slows them down.	Requests inside the policy clear on their own; only the exceptions reach a person.

The rules that apply to software and technology

What each rule requires, and what it means for a travel and expense policy.

Rule	What it requires	What it means for your policy
Accountable plans, Treas. Reg. §1.62-2	Reimbursements are tax-free only when expenses are substantiated and excess advances come back. An amount paid whether or not an expense was incurred is wages (Rev. Rul. 2012-25).	Reimburse tools and home-office items against receipts; a flat stipend goes through payroll.
De minimis safe harbor, Treas. Reg. §1.263(a)-1(f)	Items up to $2,500 per item or invoice, or $5,000 with an applicable financial statement, may be expensed when the company's book policy expenses them from the start of the year.	Set your capitalization threshold, and tag every laptop whatever it costs.
California Labor Code §2802	Employers reimburse employees' necessary business expenses. California courts have applied it to a reasonable share of a personal phone used for work, even on an unlimited plan (Cochran v. Schwan's Home Service, 2014).	Reimburse the work share of phones and home internet for California staff who need them.
Illinois Wage Payment and Collection Act, 820 ILCS 115/9.5	Employers reimburse necessary expenses employees incur within the scope of their job and directly related to their work.	Write down which remote-work costs you reimburse.
Meals, entertainment and gifts, IRC §274	Business meals are 50% deductible when they aren't lavish and an employee is there; entertainment isn't deductible; business gifts are deductible up to $25 a recipient a year.	Log who was at a business meal and why, and keep entertainment and gifts apart from meals.
IRS substantiation, Treas. Reg. §1.274-5	A receipt for every lodging expense, whatever it costs, and for any other travel expense of $75 or more, with the amount, date, place and business purpose.	Keep the hotel bill for every night, and receipts for anything else at $75 and up.

2026 market benchmarks for software and technology

Published figures to measure a travel and expense policy against.

Benchmark	Figure	Source
Median SaaS spend per employee, 2026	$9,455	Zylo 2026 SaaS Management Index
Growth in SaaS bought on cards and expense reports	267% in a year	Zylo 2026 SaaS Management Index
SaaS licenses unused	36%	Zylo 2026 SaaS Management Index
San Francisco hotel average daily rate, 2025	$225.82 a night	CoStar
Domestic round trip sold through travel agencies, first half of 2026	$614 on average, up 13%	ARC
Fare premium for booking 13 to 7 days out	About 26% over the cheapest window	CheapAir airfare study, 2024

The software and technology policy pack

On day one, a company starts from the pack for its industry. This one is for software companies and tech-enabled services, where tools and hardware matter more than travel. Each category starts with a limit and a rule.

Software and technology pack

Airfare$1,200 a round tripPremium economy on flights over 5 hours, never business. The lowest logical fare, 14 days ahead when you can (21 for international).
LodgingMarket rate + 15%Each city's market rate this week plus 15%, or $300 a night including tax where there's no market data. The itemized hotel bill for every stay.
Ground transport$100 a tripRideshare or transit before a rental car, and rental cars mid-size or smaller. A receipt over $75.
Meals$75 a dayWhat you spend on nights away, with the itemized receipt for meals of $25 or more. Alcohol inside the limit, never billed to a customer.
Client meals$125 a personEach guest, their company and the business reason, with the itemized receipt.
Events and ticketsNo limitA manager approves it first. Coded apart from meals, because entertainment isn't deductible.
Gifts$25 a person a yearThe most that's tax-deductible. Name who gets it.
Software$500 a monthCheck the company doesn't already pay for it. A manager approves any charge over $1,000, tools that touch code, customer data or sign-in get a security review, and a tool two or more people pay for moves to a company plan.
Equipment$2,500 an itemIT approves computers, phones and tablets first and tags them. Developer laptops over $2,500 are ordered through IT.
Client travelPer clientA starting policy for customers who pay for travel: Economy up to $1,200 and meals at $68 a day, the federal standard rate, with approval above them.

Every line is a starting point. Admins change limits on screen or in a sentence, and ExpenseOS shows every change it would make before anything applies. From then on, every request is answered against the policy before the money moves, with the rule named, and anything out of policy goes to a person with the reason.

Questions software companies ask

What should a software company look for in travel and expense software?

Control of the spend that grows fastest, software subscriptions and equipment, without a sign-off on every small purchase, plus travel checked against policy before anyone books. ExpenseOS starts software companies and tech-enabled services from a policy pack built for that mix and answers every request before the money moves, with the rule named.

How do you stop duplicate SaaS subscriptions on expense reports?

Check for an existing company license before anyone buys, send larger charges to a manager, and move a tool two or more people pay for onto a company plan. Zylo's 2026 index found SaaS bought on cards and expense reports up 267% in a year and 36% of licenses unused. In ExpenseOS the software pack asks people to check first, sends any charge over $1,000 to a manager, a year's plan included, and answers every request before the money moves.

Do we have to reimburse remote employees' phone and internet bills?

In some states, yes. California Labor Code 2802 requires reimbursing necessary business expenses, and California courts have applied it to a reasonable share of a personal phone used for work. Illinois and several other states have reimbursement laws too. Federal tax rules then decide whether the payment is tax-free: reimbursements under an accountable plan are, and flat allowances are wages.

Should laptops be capitalized or expensed?

It depends on your capitalization threshold. Under the IRS de minimis safe harbor, items up to $2,500 each, or $5,000 with an applicable financial statement, can be expensed when your book policy does the same. Whatever the accounting, IT should approve and tag every laptop. The software pack allows equipment up to $2,500 an item, with IT approving and tagging every computer first.

How does ExpenseOS handle travel for software teams?

Flights, hotels and cars are searched and every result is checked against your policy with the rule named. The software pack starts with premium economy on flights over 5 hours, never business, up to $1,200 a round trip, hotels at each city's market rate this week plus 15%, and meals up to $75 a day. Anything out of policy goes to a manager first. People book on their own card, approved before they spend, and keep the airline and hotel points.

Start from the software and technology pack.

A short walkthrough mapped to your policy: what the pack sets up, what you would change, and how every request is answered before the money moves.

Book a demo →See pricing

Sources

Rules and figures as published on 1 November 2026. This page summarizes public rules and published figures for general information; it is not legal or tax advice.

Travel and expense management for software and technology companies