Several problems and inconveniences may arise when employees need to allocate money on the companies’ behest. In most cases, corporate credit cards will not be issued to all employees meaning that compensation can take weeks or longer while the receipts are frequently lost during the business dealings. Since it is not mandatory for companies to employ conventional payment methods, it is best to look into the most convenient and simplified approach to obtain your financial rebates.
Presented below are five ways that prepaid cards can help streamline your company’s expenditure management operations:
1. Better control on staffs’ spending
When using an outdated business spending approach, the employee would often spend the company’s money first then explain why afterwards. Often times this will result in unnecessary travelling costs, lavish lunches, or expensive entertainment. By choosing to use prepaid cards instead, employees will have a fixed amount of resources to use meaning they will be obligated to budget their expenses more mindfully.
2. Take advantage of prepaid cards to track your budgets
Business expenses tend to accumulate over time, most notably if you have a fixed budget on handling a project. As is customary when using old-fashioned expenditure approaches, the actual costs are only seen once the expense report has been submitted. Alternatively by using prepaid cards, you can monitor the budget over time and weed out unnecessary spending before it become problematic. Do not delay on getting your employees expenditure reports before adjusting your budget by using a prepaid card in its place.
3. Observe and notice early signs of fraudulent activities
Assuming that your expense report procedure does not have a regular schedule, or in the case that employees take a prolonged business trip, the likelihood of fraudulent activities increases. By utilising prepaid cards instead, you may observe spending immediately and be able to recognize any suspicious purchases. This proficiency to view ongoing expenditures from your employees allows you to detect fraudulent activity before it gets insurmountable.
4. Prepaid cards offer your employees spending control
Making use of prepaid cards for business affairs is not only limited to managing overspending, prepaid cards also have the benefit of facilitating autonomy through authorised spending. By allowing your employees to independently make use of spending power (to a certain limit), you ease the burden on your finance team as they are not required to micro-manage every ongoing purchase or expenditure. By setting up an establish budget and guidelines for spending in the beginning, you can relax about how each dollar is going to be spent.
5. Using prepaid cards lessen the labors of your finance department
Handling business expense reports, cutting compensation cheques, and allocating company cash is unproductive and time-consuming. By allowing your employees to use prepaid cards instead, your accounting department will be freed up from unnecessary labor and will have more time to focus on important projects instead of redundant paperwork.