Best practices for corporate credit card management
Managing company expenses can be overwhelming when numerous options are available in the market like business credit cards, company credit cards, company debit cards, corporate credit cards, etc.
Choosing the most viable option is important to every company as this decision will impact the company's financial well-being.
A corporate credit card is used explicitly for company-related expenses. The company issues these cards to their employees to make purchases and payments on the company's behalf. This way, employees’ funds do not get tangled up in the process. Hence, they need not pass through the tedious reimbursement process.
Online subscriptions need to be paid through credit or debit cards. Facebook & Google ads require an e-payment option. Employees need a convenient card to complete these online transactions.
Corporate cards give employees the autonomy to conduct business purchases on their own. This enables each team to make its own set of expenses and decreases the dependency on another person. Also, this allows enhanced categorization between the costs of different departments and activities.
Corporate cards are automated by AI. All expenses incurred by each card will be reflected in the corporate card management system or an expense management system. The details are uploaded in real-time, so an accurate image of the company’s expense reports.
Corporate cards are the most modern tool for making payments. These can include in-store as well as online fees. The Visa corporate card should support various modes of payment like PayPal and Google Pay. Having your cards protected by authorized companies ensures theft.
The right corporate card program should be flexible enough to incorporate any immediate changes. Since every employee card will have a unique spend limit and diversified expenses, it should allow customization of each card according to different employees.
The most crucial factor before finalizing the right corporate card program is the cost the company has to bear. Apart from the regular charges, there are many other costs associated, which come into light later on. For example, new card issuing costs, distribution costs, money transfer charges, annual maintenance charges, and more. These costs do not come upfront, so it's necessary to evaluate the company’s spending capacity before taking any action.
The corporate card software should be flexible enough to integrate with other platforms to improve the entire system's functionality. The most common type of integration a company desires is accounting. They require a platform that can easily sync into their accounting or ERP system without affecting other processes and improving the workflow.
Every employee stack need not be given a corporate card. Some employees do not make direct purchases, and hence, giving them individual cards will unnecessarily increase the costs of issuing and maintaining cards.
Monitoring the expenses for each employee card is extremely important to understand how and where the employee is using the company's funds.
Employees should be given clear instructions regarding the use of corporate cards. Areas where the expenses can be incurred and where it is strictly prohibited. Do they need to submit proof of a transaction even after uploading it?
Having an approval policy prevents employees from misusing the card’s funds. The funds available in employee cards are according to their spending requirement. Still, if they require extra funds, admins have the authority to approve additional funds into their cards.
Since employees will be the actual owner of cards, selecting the card compatible with their needs is crucial. These cards are easy to use without any extra effort.
The expense policy drafted should be realistic & favorable for employees. They should incur expenses in compliance with the company expense policy.
Any card detail required should be easily accessible through the software linked by. Also, the expense management system should have an interactive user experience with pain-free access to any tab.
Easy change of spend limits, creation of new cards, block and freeze cards, etc., are some of the functionalities which should be easy to implement without extra hassle.
Volopay offers a comprehensive solution for better expense visibility and reporting. Our corporate cards help better manage business expenses and eliminate traditional accounting and bookkeeping. Every employee gets a unique card with an embossed company name and employee name for better identification.
- Multi-level approval flow
- Real-time visibility
- Individual card for every employee
- Personalized spend limits for every card
- Attached to a single budget
- Purpose-specific cards
- Spend limits for each card
- Easy subscription management
- Instant transaction history for all expenses
- Secured domestic and international transactions
- Granular details of each transaction
- Neat arrangement of vendors
- Pay directly through invoices
- Auto-fill invoices using OCR
- Credit line of up to $500k
- Interest-free credit no personal guarantee
- Instant alerts for approvals and reminders for payments
- Customized approval policy
Best corporate credit card for small business offers control over spend limits, real time visibility, expense controls.
Debit card is linked to a bank account while credit card is linked to credit line. Know in detail about the differences.
With corporate credit cards, businesses can manage their accounts and track expenses more efficiently.