As businesses grow they face decisions. One of these is to define whether certain employees should have their own credit cards issued in the name of the company.
There are administrators who basically because of ignorance are opposed but knowing the advantages change their minds radically.
On the one hand they dramatically reduce the checks issued by the company and optimize the management of expenses since the business credit card provides detailed information of each user, which eventually saves the administrative department time.
The processes are also shortened, since in the use of checks there are usually setbacks. There are times when the final costs are different from the price for factors such as the international market or last minute changes, which generates a delay in the purchase. If an employee has this tool at hand they just have to sign and solve everything.
How to reduce costs with a business credit card?
Cost reduction is a permanent concern. In addition to being a tool for efficient payment, a credit card is a low or no cost administration mechanism.
As if this were not enough there are options that offer loyalty programs that translate into benefits such as valuable rewards or discounts. There are companies for which this represents thousands of dollars a month.
Business credit cards also cancel abuse in expense accounts as control is infallible as there is no way for employees to inflate reports.
Access to fast capital is another reason to consider this option as it immediately solves the cash flow problems that may arise.
4 factors that the company’s director must clearly understand in order to achieve these objectives:
Set limits: The best way to prevent overdrafts is to establish clear barriers. Employees must have card usage limits according to their position and level. The owners can block not only the quantities but also the business categories and can even be restricted to certain business suppliers of the firm.
Issue guides: That is, do not assume that employees know the limits, but generate a document that will inform them and make them responsible for the use of this mechanism exclusively for the company. Sanctions or penalties must also be specified for not respecting the rules.
Supervise: Statements, statements and receipts should be reviewed regardless of trust in employees. It is important to keep abreast of the expenses and uses of the card because only this way a change or an alteration to the routine will be noticed.
Activate the benefits: Not all reward programs are active automatically, so we must advise our bank on the program that best suits our company according to the uses of this benefit.