Financial management is crucial to your company because it shows the proper allocation and management of acquired funds. This practice gives you a clear direction when planning your finances and helps you invest in organizational growth.
To help manage your business finances, you need to create separate corporate expense cards, so you can monitor income and expenditure. These assets will help you control your monetary spending and avoid issues in the finance department. In turn, you can improve employee productivity, as well as prevent organizational problems, such as excessive spending and personal expenses disguised as business expenses.
Read on to learn about the benefits of using business expense cards for your financial strategy.
• Finance Control
Effective finance regulation significantly contributes to the cash flow implementation of your company. When you have a proper control structure, you can plan the cash inflows and outflows. As a result, you can successfully handle acquired capital and allocate it properly so that operational activities will continue running.
With the help of business expense cards from subscription services, such as Weel, you have the power to set custom budgets. In addition, you can develop spending rules that your staff should follow. Thus, employees will become more mindful of their habits instead of spending on unnecessary items mindlessly.
• Early Fraud Detection
Accounting fraud often happens when your staff tries to manipulate your organization’s financial health. They’ll try to hide profits and consider them as their own or miscalculate the balance to conceal losses. For instance, your employees may commit fraudulent acts, like failing to record expenses or overstating revenue, for their benefit.
To prevent these costly behaviors, you must use tools, such as corporate expense cards with an early fraud detection feature. Instead of letting your internal auditor investigate suspected fraudulent instances, using this tool will allow you to detect suspicious transactions within your organization automatically. In the case of stolen cards, thieves won’t be able to use them because they’ll have to enter two-factor authenticated codes before accessing the card.
• Real-Time Data For The Finance Department
Transparency is essential to your business because it helps you gain your investors’ trust. When you can show them accurate transparency reports, they’ll continue to provide financial support that will aid in business expansion. Aside from this, you can show transparency reports to prospective business partners during project proposals.
The problem with company cards is that recurring and pending payments can be processed later even if you keep track of credit statements regularly. Consequently, keeping abreast of budgets becomes difficult.
So, to activate financial transparency within your organization, you must use business expense cards that will provide you with real-time data. Business expense cards record every payment that’s made, including proof and managerial approval of purchase. Therefore, a financial controller can log in and check all company spending at any moment, which is assorted by expense category, team, and so on.
• Elimination Of Employee Expense Reports
Expense reports are time-consuming and cast doubt on your organizational data. Furthermore, this traditional method puts an unnecessary monetary burden on your staff, especially whenever they have to use their finances for business transactions abroad. Rather than returning to their daily tasks after having a business-related conference abroad, they have to process these audits, which affects their productivity.
To eliminate inefficient employee expense reports, you must provide your staff with business expense cards. Once you do so, they can purchase supplies for your company without using their own money. Rather than waiting for reimbursements, they can use assets for corporate transactions with a set daily spending limit to avoid overspending.
• Paperless Receipt Storage
Keeping official receipts is vital in bookkeeping because receipts serve to legalize your transactions and ensure that your business stays compliant with tax laws and regulations. When you store the original copies of these documents properly, you can protect your organization from abusive vendors that claim you haven’t paid for their services. Instead of paying for fraudulent claims repetitively, you can use files as proof that you completed the transaction and as protection from financial and legal trouble.
With the help of business expense cards, you can easily store the receipts. Most card providers come with a mobile app where you can enable your employees to take images of these documents. After that, they can save the files next to their most recent payment to ease the payment reconciliation process. Then you can also save duplicates of the receipts through cloud storage, so you’ll always have backups in case of file corruption.
Key Takeaway
As an entrepreneur or a business owner, you must always find innovative ways to improve productivity. A reliable approach to achieve greater efficiency is to apply for business expense cards.
