Out of pocket expenses are sometimes unavoidable, but when they get out of control they can make a big dent on your finances. Sometimes your best option is to switch to a company card. These hold several advantages and can be very effective in helping you to curb spending. Prepaid versions allow you to decide in advance how much your employees can spend in each period and prevent wasteful expense. Here are some of the main benefits of company cards:
If you switch to company cards, it will be easier to keep track of every penny your employees spend. When you rely on expenses being met out of pocket by your workers, you have to request receipts and other forms of evidence in order to ensure everything is accounted for. This is just another administrative burden you could do without.
Whatever way you look at it, having specially designed company cards is more professional than asking for receipts to account for expenses. It creates the impression that your finance department is on top of things and keeping a close eye on how much is coming in and out of the company.
Using company cards can help you in the process of budgeting on a long-term basis. While the initial effort might just seem like a great deal of hassle, over the longer term they will make it easier to plan ahead and manage every aspect of your budget. Employees will appreciate it as well because it will allow them to consider in advance how much they can afford to spend on expenses each month.
Company cards can also act as loyalty cards for your dedicated staff, if you offer enough incentives. You could give them a reason to avoid out of pocket expenses by adding a loyalty barometer to each card, which would be proportionate to how much money they save on expenses each month.
Company cards are becoming increasingly popular for the reasons outlined above. They represent the future of expense management, not just because they are professional, but because they help you to keep track of your budgets. They can be managed digitally and remotely. Your finance department can log in at any moment and check how much is on any given employee’s card. If necessary they can top it up or send email updates to that employee letting them know they are nearing their daily, weekly or monthly limit. It is this digitisation which has the potential to revolutionise the expenses aspect of every business.