Importance Of Using Corporate Cards For Your Business

corporate card

Corporate cards have been in use for decades, and most companies have a couple of central cards that they use for paying the vendors. But it is still common for employees to rely on their personal cards for traveling and other such expenditures. Organizations want to stay away from the hassle of handling conventional cards. They might also be worried about unauthorized spending. The introduction of widespread use of corporate cards can eliminate many concerns and remove the conventional barriers to corporate spending. 

Easy to manage and issue corporate cards

The finance department in a central dashboard can quickly issue and manage corporate cards. Administrators can control the cards they want to issue, remove or add users, and change spending permissions. In addition, they can choose to set up the cards for single-use or issue the cards before a particular business trip or event. Issuing the cards is helpful in enabling immediate purchases for the business, which saves a lot of time.

Automatic enforcement of the expense policy

You can configure the corporate cards with a variety of controls to reflect the expense policy of the organization to reduce unapproved spending. It can include per-week/day or per-transaction limits, limitations on specific merchants or merchant categories. You can also set up the cards to only use them on a particular day/time or expire on a specific date. It lets organizations minimize financial exposure and eliminate the chances of excess spending.

Streamlining reconciliation

You do not need to cross-check every item on the card statement against the expense report of the cardholder for card reconciliation. Integrated expense solutions tend to make it easier to match transaction receipts with card data. Optical character recognition is used to match the data from the receipt. The automated matching ensures that there is no need for the admins to validate spending, saving manual labour hours. 

Earning cash rebates

Cash rebates on corporate cards are usually one to two percent of the overall spend. Issuing these cards across the company and channeling corporate expenses through them can lead to at least five-figure rebates for any mid-sized organization. Think long-term on this matter, and it can alone pay for the corporate expenditure management software.

Improving the experience of the end-users

Not only the organization but also the cardholders benefit from the cards. It eliminates the need for the employees to cover expenses and keep waiting for reimbursements. This is particularly helpful for those who conventionally submit larger expense bills or have less cash available to cover the bills. 

Furthermore, it eliminates the possibility of under- or over-reimbursing the employees for their foreign transactions at the time of fluctuations of the exchange rate. The combination of expenditure management software and these cards can reduce the time for automated spending reconciliation from an hour to a couple of minutes.

Endnote

With all the benefits offered by these cards, if you still have not issued them for your employees and company, it is time to get that job done.

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