5 Ways Prepaid Cards Help with Business Expenses
It can be inconvenient when employees need to spend money on behalf of the company. After all, corporate credit cards cannot be given to everyone, reimbursement can take weeks, and receipts often get lost during the shuffle. It isn’t a requirement for business to use traditional expense methods, so why not look into a more convenient, streamlined method?
Below are five ways that prepaid cards can help streamline your company’s expense management process.
- Employees only spend what you allow
With traditional employee spending methods, the employee spends first and explains later. Sometimes this can result in extraneous cab rides, pricey lunches, or costly drinks. If you use prepaid cards, employees have a set amount to spend, which will require them to budget their expenses wisely.
- Use Prepaid Cards to follow a programme budget
All those expenses add up, particularly if you have a tight budget or project. As we know, with traditional expense methods, you only learn of the actual cost after an expense report is submitted. If you use prepaid cards, you can monitor the budget as you go and nip superfluous spending in the bud. Don’t wait until you get your employees’ spending reports to adjust your budget, use a prepaid card instead.
- Monitor and spot early signs of fraud
When expense reporting doesn’t have a regular schedule, or when employees are on extended business trips, the possibility of fraud increases. The use of prepaid cards lets you to monitor spending in real-time and you will be able to see any suspicious purchases. This ability to monitor allows you to stop fraudulent activity before it gets out of hand.
- Prepaid cards give your employees spending power
Prepaid cards for business isn’t only about limiting spending—prepaid cards enable autonomy and authorised spending. By giving employees spending power (within set guidelines), you free up your finance team from micro-managing every purchase. When you set the maximum budget and guidelines from the beginning, you can relax about how each dollar is going to be spent.
- Prepaid cards give your finance department a break
Processing business expense reports, cutting reimbursement checks, and distributing petty cash is time-consuming and inefficient. If you permit your employees to use prepaid cards, your accounting department will have more time to focus on pertinent projects, rather than redundant paperwork.
Please visit www.transact24.com to learn more about prepaid cards as an expense management solution for your business!