When to issue corporate credit card for employees?
Corporate credit cards have disrupted the conventional modes of sponsoring employee expenses. Companies now rely on corporate cards for employees for better expense identification and visibility. Employing corporate cards allows the management to move away from the paper claims method and establish a solid base for expense reporting.
As for employees, they no longer need to finance business expenses through their personal funds. While on a business trip, they are not required to juggle between various modes of payment for online and in-store. The employee spending cards offer dynamic functionalities that make them the first choice for businesses to manage employee expenses.
Company credit cards are not supposed to be issued to every employee in the organization. It creates an unnecessary blockage of money to print and administer corporate cards from the lowest management to the highest level in the company hierarchy.
Not to mention these cards are capped with a certain degree of authority, so if every employee in the company is given a card, the possibilities of fraud and personal gains proliferate. Therefore, before opting for a corporate card program, analyze your company situation and think thoroughly if you need employee spending cards.
Employees who travel due to business reasons are constantly subjected to the heat of travel reports and expense claims. They are supposed to store proof of payments for every payment to submit later during the reimbursement procedure. The process becomes more cumbersome when the duration of the trip is long.
To prevent employees from the situation mentioned above, we advise issuing them corporate cards. Through the help of company credit cards, their business trips can become more generative, as they don't have to worry about invoice collection and expense reporting. Due to active corporate credit card policy rules, employees cannot get away with personal spending and mismatch, which helps keep the expenses budget-restricted.
The marketing team is all-compassing pertaining to its responsibilities of enhancing and uplifting business decisions and serving excellent customer experience. In doing so, having a flexible tool that can support multiple payments and report in real-time is highly crucial. The marketing team is responsible for organizing events and other promotional activities where cost tracking plays an important role. Apart from this, the marketing executive runs ads campaigns through Google Ads and Facebooks Ads, which require a periodic lump sum of payment.
Vendor management is often considered a back-office task. However, if not managed appropriately, it can lead to the rise of indirect costs of doing business and negatively impact the company's operational efficiency. Corporate cards play an essential role in managing vendor payments and costs. You can track the supply of the goods and services, manage inventory costs, streamline the supply chain cycle, and ensure the vendor the paid in time.
SaaS tools have become an essential part of handling business functions. These online tools provide high-grade business solutions with seamless integrations and faster processing capacity. But SaaS payments are often jumbled up as companies have a hard time managing their SaaS subscriptions. Companies can create and manage past and upcoming SaaS payments with virtual subscription cards.
The subscription payments are logged in real-time, so you know which subscriptions are currently active and dormant. Additionally, while making payments, the in-built corporate credit card rules ensure that the person making payment and the card used to make payments are reflected to establish accountability.
Incentivization does wonders on employee productivity. And if earning rewards is as simple as swiping a company credit card, employees would do it every time. However, it's not only the employee who benefits this way - it's the management too. On the one hand, corporate cards for employees delight them with lucrative rewards and cashbacks that boost their motivation and stimulate making a majority of payments via their cards. In contrast, the management gains unambiguous visibility over expenses and the cost of operations.
Human resource is a collaborative work that requires extensive resource allocation in terms of funds. The manual system of recording expenses and payments often fails to keep pace with the cycle of events.
But with employee spending cards, you can handle HR activities like recruitment, selection, and training pretty well, alongside keeping an eye on office maintenance. With budgeting in corporate cards, you can specifically create budgets for each department, pooling in all the activities and ensuring the work is conducted with these means only.
Along with deciding which employees you should give a company credit card, it's also choosing when and where these cards can be used. Corporate credit card programs might not be reasonable for every business entity. Because the use of these cards is effortless, but the back-end processes need to be in place.
1. When your company is struggling to manage employee expenses through the manual method of accounting and reporting
2. Employees on business trips are required to use personal funds or out-of-pocket funds to finance meals and other expenses.
3. Your employees apply for reimbursements from the low to high-dollar value expenses.
4. Your manual reimbursements method is slow and sluggish to deliver.
5. Employees need to carry and maintain physical receipts and invoices for every payment.
6. Uneventful month-end expense reports need to be filed and submitted by the employees
7. Employees get no reward or incentives for making payments on behalf of the business.
8. You relatively have a large and scattered workforce.
9. The missing expense claims make it difficult for accounting reconciliation.
Management's role does not conclude with providing employee spending cards. Monitoring their spending made via these cards is still a task for them. You don't need to oversee their activities in person or be physically present. Your corporate card management software will do this work for you.
Just because you have enough corporate cards should not make you distribute them without prior consideration. Issuing these cards to unnecessary employees will increase your card spending expenses apart from making it difficult to track multiple cards.
The corporate card software lets you effortlessly generate expense reports according to each department, card, and expense category. Glancing through these reports can provide a transparent overview of the company's spending habits and other expenses.
With a web of multi-level approval processes, employees' expenses get reviewed beforehand. The approvers can decide which transaction can go ahead and which cannot. With the help approval matrix, any unidentified or unnecessary transaction does not get approved.
Everything at your company starts with a well-detailed yet straightforward corporate card policy. Clearly defined corporate credit card rules help set the expectations from the employees and the management. It acts as a guiding document, letting you know what is acceptable and not. It contains all the general rules and guidelines that will govern the spending policy related to corporate cards.
To ensure your employees stay capped within a specific amount, you can set spending limits on their cards. This will make them adjust their spending within the ceiling limit, and in case of a genuine requirement of funds, the additional amount can be loaded into their card. Also, you can set individual spending limits to each so that every employee gets funds based on their needs.
Volopay offers corporate credit card programs that help simplify your business spending to the core. You can ditch the old methods to manage employee expenses through our cards.
With enhanced functionality like real-time reporting, compliant with expense policy, individual spending limits, customized approval workflow, automated expense reports, seamless integrations, and much more, Volopay remains the superior choice of businesses looking to revamp their accounting stack.
Security, flexibility, adaptability & cost, are some of the key things you need to look for while choosing the right small business cards.
Centralized expense tracking, individual card limits, & avoiding fraud, are some of the benefits of having a corporate credit card
With corporate credit cards, businesses can manage their accounts and track expenses more efficiently.