Corporate credit cards for easy expense management
Your go-to guide to understanding corporate credit cards and how you can use them for everyday business expenses to simplify your spend management — all with Volopay
The business world is growing at an unprecedented pace, fueled by the newest technological advancements to ease and even automate business processes. However, one of the most overlooked features in business today are corporate credit cards, a type of expense card that is issued to employees by their employers to conduct business-related transactions swiftly and efficiently.
Companies everywhere are so used to the traditional method of business credit cards that they more often than not miss out on the hassle-free accessibility and time-effective benefits that corporate expense cards have to offer. If all you’ve ever wanted in your business expenses is transparency, accountability, and control, using a corporate credit card for expense management is the way to go!
Many people make the common mistake of using corporate credit cards as synonyms for business credit cards, when in fact the two types of cards are very different.
With business credit cards, while it is easy to set spending limits on each authorized card, it is very difficult to set spending categories. This gives your employees free rein to pay for different operations using the business credit cards which they weren’t supposed to. On the other hand, with corporate expense cards, not only can you set spending limits, but you can also restrict spending categories so that the corporate cards are used by employees for activities they are authorized to do.
Who bought that $8 pumpkin spiced latte and chalked it up to a business expense? If you are using business credit cards, you’ll never find it out! Business credit cards do not provide the feature of expense tracking and reporting, and those who do provide this feature are average at best. The result? An increased risk of wasteful, uncontrollable expenditure can jeopardize the cash flow and credit score of your business. With corporate credit cards, you get real-time expense tracking and spending alerts that let you know of any misuse instantly. More on that later…
When using business credit cards, your cards must be linked to the company bank account which if not supervised closely, can lead to unforeseen expenditure, exhausting your credit limit earlier than expected, ultimately risking your business credit score. When using corporate credit cards, especially the ones provided by Volopay, your corporate expense cards are not linked to your bank account but are linked to the department budget you’ve set for each corporate credit card. This ensures that your company bank account is not irreversibly affected by any unauthorized or personal spending by employees.
In the battle of corporate credit card vs business credit card, we know who the clear winner is. Corporate expense cards are not just safer and more secure than business credit cards, they are also extremely beneficial to have both for the employer and the employees, whether you have a well-established business or an SME. Here are some of the umpteen benefits of having a corporate credit card for expense management:
With corporate credit cards offered by expense management platforms like Volopay, you can see a live expense tracking dashboard, that keeps a note of all transactions so that you can exercise full control over how and where your money is being utilized.
Corporate expense cards also come equipped with features such as real-time spending alerts to notify you if and when any expense policy set by you for a corporate card is being violated.
With corporate credit cards, you can not only put a spending limit on every single card, you can even go ahead and restrict corporate cards under certain spending categories as well. This ensures that every corporate card is being used for the exact purpose it was created for.
For instance, if a corporate card is being created for travel purposes, creating the corporate credit card for specifically that purpose will avoid any possibility of wasteful or personal spending by the cardholder.
Having corporate cards created with a fixed budget for a fixed purpose limits the possibility of fraud or misuse. In case you fear that an employee might be using the corporate credit card for personal spending, you can choose corporate credit cards with reconciliation software that can quickly distinguish between a business and personal expense automatically.
One of the main issues with expense reports is the delay in receiving expense claims that can take a couple of weeks up to several months to be displayed. With business credit cards, the irregular nature of delayed or recurring payments can make your budgets go haywire. The solution?
Corporate expense cards provide real-time logging reports with the added convenience of purchase proof, eliminating the need for long-winded employee reimbursement hassle and a clear record of all company expenses, broken down into categories, team, cardholder, etc. This data is again stored in a cloud-based storage platform making it accessible, no matter where you are.
Business credit cards, due to their access to your company bank account, are given to only the high-ranking authorities such as the CEO, VPs, other executives, and office administrator. What about the others? Other employees have to ask for these cards time and again whenever they need to make a business expense. It feels like you’re back in school, asking your teacher for the hall pass.
That’s why corporate expense cards are the ideal choice, as they can be given to anybody since they are allotted on a predetermined budget and are not linked to your company’s bank account. What’s more, you can also issue instant access to virtual cards for your employees and see a clear view of who is spending your company money and where.
Contrary to popular belief, small businesses too can reap the benefits of corporate expense cards and streamline their expense management workflow swiftly and efficiently. Here are a few ways you can use corporate credit cards for small businesses to your advantage:
Sometimes you might feel the urge to put a business expense on your personal card, or your employee may feel the same sentiment to get some reward points, but it’s best to not blur the line between your personal and business expenses. Having a dedicated corporate credit card allows you to restrict yourself and your employees from making any business purchases personally, keeping your financial records clean and your credit history pristine.
A corporate expense card is the best way to keep track of any of your individual employee’s or team’s spending habits and have tangible proof and record to show who is indulging in wasteful expenditure of precious company resources. Armed with corporate credit cards for your business, you can even pinpoint fraudulent activities, embezzlement, or blatant misuse and safeguard your assets accordingly.
One of the best features about corporate credit cards is the multiple levels of security they provide in terms of multi-level approval for every expense, thereby protecting your company against theft, fraud, and any possible misuse. You can set multiple authority channels according to the value of the business expense, whether it’s a low-cost expense or a high-cost one. If found to violate the expense policies set by the authorities, you can easily block and freeze all activities on the account.
One of the best benefits of using corporate expense cards is the cash rebates your receive on purchases. Cashback rebates differ for each provider, depending on the type of purchase made. For example, a company that generates an overall expense of USD 3 million paid through a corporate expense card can rake in as much as USD 50,000 as a cash rebate! This rebate can be further invested into an all-in-one financial spend management platform such as Volopay that provides auto-reconciliation with your accounting software along with various other features.
When employees have to incur out-of-pocket expenses on business operations such as work trips, they can end up accumulating thousands of dollars worth of employee reimbursements, which is in itself a long and tedious process.
Corporate expense cards eliminate this problem by providing them the freedom to pay for stuff on the go using the company’s resources and digitally attach their receipt as proof of purchase. Not only the monetary benefit for the employees, equipping them with corporate credit cards instills in them a feeling of mutual trust and admiration that further improves collective team happiness.
The benefits are irresistible, but choosing the right corporate expense card provider for your company is a tricky business itself. Luckily, we can help you out here too…
Volopay’s range of physical and virtual corporate cards with in-built departmental budgets and spending limits adhering to expense policies allow you to foster a seamless expense management system in your business.
Set proactive controls on every single corporate expense card, send funds, and experience real-time tracking on our live dashboard. You can set custom policies and block activities such as international transactions and ATM withdrawals whenever you prefer.
Since every card is allotted to specific employees for specific business purposes, you can easily keep track of who is using company resources where and approve or reject as you go. What’s more, we also provide unlimited virtual cards with lightning-fast instant access.
Not just this, Volopay also provides seamless GPay support. You can add your 16 digit card to Google Pay directly and enjoy faster payments with just a few clicks! You can set recurring or one-time corporate cards based on your type of expense with just a click of a button.
But that’s not all! Volopay offers great cash back rebates of up to 5% on all FX transactions. The more you pay using corporate expense cards, the more you save, with no cap on saving!
Company credit card for employees are issued to pay for their business expenses. Know how and when to issue a corporate card.
Real time visibility, expense management, and subscription management are some of the advantages over American Express.
With corporate credit cards, businesses can manage their accounts and track expenses more efficiently.