A Guide to Modern Expense Management with Corporate Cards
Corporate expense management is the bedrock of any optimally functioning organization. As your company grows, keeping track of day-to-day expenses becomes more challenging, transforming daily operations into a paperwork overload. In this guide, we’ll take a closer look at how businesses can alleviate the administrative burden and streamline their expense management with modern solutions like corporate cards.
Corporate Expenses: Main Categories
Corporate expenses are costs incurred to operate your business properly. Generally, they are grouped into a couple of main categories, including:
● Operational Expenses: Day-to-day costs, such as payroll, utilities, and office supplies.
● Capital Expenses: Longer-term investments like infrastructure and equipment.
● Travel and Entertainment Expenses: Business-related travel, accommodation, meals, and entertainment costs are eligible for reimbursement.
The latter category is traditionally incurred from the employee’s account and later claimed back by providing receipts and filling out numerous forms. The task gets even more onerous if the receipts are lost or deadlines are missed. The bureaucratic wrangling often means a delay in being reimbursed for employees, operational delays, and financial mismanagement for companies.
Main Types of Corporate Cards
Corporate cards are payment cards issued to employees for their day-to-day business-related expenses. Cards are linked to a dedicated line of credit or the company’s bank account, bypassing bureaucratic hurdles and streamlining expense management and monitoring. Based on the functionality, corporate cards come in three main varieties:
● Credit Cards: Offer a line of credit for business-related expenses, with the company covering the balance every month.
● Debit Cards: Offer a direct link to the company’s bank account, with the funds deducted immediately upon each transaction.
● Prepaid Cards: Offer a limited amount of money loaded to the card, allowing for controlled spending.
Top Benefits of Using Corporate Cards for Expense Management
Unlike other expense-tracking solutions, corporate cards come with a set of benefits. Here’s a look at some of the most prominent ones.
1. Streamlined Expense Tracking
Manual data entry is a burdensome and error-prone approach to expense tracking. Corporate cards simplify day-to-day expense management, allowing real-time visibility into employees’ spending patterns. Automatic record transactions enable access to detailed financial reports, minimizing the workload of employees and administration.
2. Enhanced Budget Control
Corporate cards are highly customizable solutions that allow for imposing controls and spending limits. This ensures that expenditures stay within the established limits, preventing overspending.
3. Advanced Security and Fraud Prevention
Corporate cards typically include two-factor authentication, customizable spending controls, and real-time expense monitoring. Wallester Business corporate cards ensure additional data protection and fraud detention, adding an extra security level to your company’s daily operation.
4. Simplified Expense Reporting
Ditch the cumbersome paperwork and simplify daily operations for employees and employers. Corporate cards are integrated into your preferred accounting software, reducing the administrative burden and allowing your team to focus on other pressing tasks.
5. Increased Employee Efficiency
Reduce the financial strain on employees (who typically have to use their funds to cover business-related expenses) and leave reimbursement forms in the past. Corporate cards offer increased efficiency, automate employees’ workloads, and improve job satisfaction.
How to Choose a Good Corporate Card Solution?
Businesses meet unique challenges that require tailor-made solutions. Any top-tier corporate card platform offers several main features, including:
● Easy Integration. Look for a platform that seamlessly integrates with banking systems and your existing accounting software.
● Real-time Expense Tracking. Choose platforms that provide detailed reports of real-time transactions. This allows for gaining insight into spending patterns and potentially identifies any underlying issues.
● Spending Controls Customization. A user-friendly platform should boast high-level customization, so you can set spending limits and impose controls in a couple of clicks.
● Enhances Security. Look for corporate card solutions offering advanced encryption, two-factor authentication, and real-time fraud detection features.
● Mobile App. Enhance flexibility and convenience by choosing a corporate card provider that has a mobile app that allows employees and budget holders to manage their cards on the go.
To wrap it up, corporate expense management is the backbone of any successful business. Corporate cards offer a hassle-free way to manage day-to-day spending, improving budget controls and minimizing the administrative burden on employees and managers.
