It's important to manage your corporate expenses and keep them as low as possible. Whether your business is big or small, your profits - and success - depend on your responsible management of costs.
Fortunately, prepaid cards can help you manage business expenses much more efficiently and effectively.
Businesses using prepaid cards for corporate expenses want to:
- Eliminate cheque and cash management
- Easily assign and track staff expenses
- Take advantage of the swift issuance process prepaid cards have versus corporate expense accounts and direct reimbursements
- Manage employee spending
How Do Prepaid Cards Help Manage Business Expenses?
1) Take care of employees' expenses when they're on the road, with no hassle
The traditional way of managing business expenses (collecting receipts or waiting for a monthly bill, filling out an expense report and then reimbursing the employee) is outdated and time consuming.
Prepaid cards take care of that. Simply provide employees with a card whenever they travel; employees use them to pay for expenses. This is beneficial because you can limit the amount of money which can be spent per day without leaving it up to the cardholder's discretion. Employees' purchases are also carefully recorded on statements/reports and accessible via an online platform, meaning no additional expense reports to fill out.
2) Get rid of petty cash
Reload an employee's prepaid card any time he or she needs some cash for business related expenses, then reclaim unused funds and have them returned to your corporate account any time. There's no need to keep track of petty cash or following up with employees to retrieve unused money.
There's also no need for corporate credit cards, and the risks associated with maintaining a line of credit.
Prepaid cards work well for miscellaneous purchases too. With instant-issue functionality, a stack of prepaid cards can be kept securely on site. When an employee needs to pay for work related incidentals a card can be issued, activated and loaded with money via an online platform - providing instant access to funds.
3) Keep your businesses' expense accounts safe from being taken advantage of
Because prepaid cards come preloaded with a fixed balance, individuals can't overcharge them. The types of retail outlets prepaid cards can be spent at can also be restricted, allowing for more oversight on purchases and ensuring the money is spent for its intended purpose.
4) There are no interest charges needed to use prepaid cards
With company credit cards, you need to make sure card balances are paid on time to avoid interest charges. In contrast, prepaid cards have no balances to pay or interest to worry about.
In addition, there are no credit checks for employees since due diligence is done beforehand at the corporate level and not at time of exchange for individual employees.
Just like credit cards, prepaid cards are accepted at any online or retail store in the world that accepts credit card payments.