How to use corporate cards for cash management?
Businesses have been adopting corporate cards as a commonly used payment tool for a while now. These cards are easy to use and make operational as well as financial management much simpler.
Corporate cards also come with a host of benefits and perks, making their popularity even more attractive. Not only do corporate cards make business payments easier but they can also be used as a tool for cash management.
The use of the corporate cash management card has become increasingly popular due to the variety of features these cards come with.
If you are not aware of what a corporate card is and its benefits for business, we would suggest you to check out article that explains in detail what a corporate card is and the factors to consider when getting one for your organization.
Benefits of using corporate cards for expense management
Corporate cards come with features that allow you to track expenses in real-time, as and when the transaction is made. The expense reporting process as well is very easy to handle with the help of the card management system.
By using corporate cards you can keep account of every single penny of cash that has been spent using your company’s finances. These cards can give you a much better insight into your business’s cash usage.
With the help of corporate cards you can control exactly how much is being spent in your company and by who. Employees can be handed corporate cards to manage their spending and you can control this spending from your card management dashboard.
Strategies for using corporate cards for cash management
1. Set spending limits for employees
A great way to use corporate cards to manage your cash flow is to set spending limits on your cards. Most modern corporate cards come with a spend limit setting feature. You can easily use this feature to control how much your money is spent.
2. Use corporate cards for recurring expenses
You can also set up an automated recurring payment for subscriptions and repeat vendors using the corporate cash management card. This way you’ll never have to miss a payment or pay late fees again.
3. Encourage employees to use corporate cards for all business expenses
Business expenses that are paid by employees from out of their pocket are hard to track and manage. Instead, encourage employees to use corporate cards. This will make it much easier for you to track and control cash flow.
4. Choose a corporate card with rewards and cashback offers
Corporate cards typically come with various benefits, rewards, and cashback offers. Make sure you choose a card that comes with the right set of offers that fit your unique business needs and requirements.
Volopay corporate cards to streamline business expense management
How to successfully use corporate card for cash management?
Educate employees on the proper use of corporate cards
Not all employees will be equally well-versed on how to use corporate cards for cash management. Make sure you run regular training sessions and keep your workforce informed on these digital payment tools.
Keep track of all expenses and receipts
Keeping track of expenses and attached documents such as receipts and invoices is key to successful cash management. Ensure all expenses are always accounted for and proof of purchase documents are always available.
Monitor company spending regularly
Instead of waiting till the end of a week, month, or quarter to get a full picture of company spending behavior do it regularly. This will give you more immediate information and allow you the opportunity to sort out discrepancies before they become damaging.
Corporate card with account management features
Corporate cards that come with online account management features can be extremely useful in cash management. Getting such a tool on board can help automate administrative processes and make cash management much simpler.
Risks and mitigation strategies for corporate card usage
While using corporate cards comes with a host of benefits and perks it also, however, comes with its drawbacks. The risks associated with using corporate cards for business expenses include cases such as employee misuse or fraud, overspending caused by inadequate controls, unauthorized transaction liability, accounting complexity, increasing card usage costs, and data and privacy security.
These problems, however, do not come without any solutions. To prevent such risks when using your corporate cash management card you can take several steps. This includes risk mitigation strategies such as setting clear policies and procedures for card usage, monitoring employee spending, utilizing cashbacks to recover card usage costs, training employees on proper card usage, and using virtual cards.
Manage your cash flow with Volopay corporate cards
Volopay corporate cards are an excellent tool for cash management. These cards can be used as cash management cards because of the unique set of features they cards come with.
With Volopay’s corporate cards, you can set up a highly customizable, multi-level approval workflow system. Employees can request funds on the go and obtain approvals fast. This also helps eliminate unauthorized or out-of-budget spending.
You can also set internal card usage controls such as spending limits, international transaction controls, ATM withdrawal limits and so much more.
Additionally, you can issue an unlimited number of virtual Volopay cards to serve any payment purpose you need them for.
Wrapping up
Using the corporate cash management card can save a lot of time, resources, and labor for any company. However, you must know the right way to use such cards to get the best out of them. Once you do get a grip on the functionality of corporate cards they can become your best friend in cash management.