Streamlining your expense management process is a crucial step to saving your company time and money.
Expense related problems such as losing of petty cash receipts, delay in reimbursement procedures and credit card frauds can all be avoided via using prepaid cards as an alternative method. Here are five ways in which prepaid cards can help counter these expense management issues.
- Prepaid Card Helps You Stick to Budgets
Traditional expense management methods allow you to see the actual cost only after the expense report is submitted, which could be highly inconvenient and may even be troublesome for some. In the case of tight project deadlines, time is regarded as an expensive luxury. During times like these, businesses simply cannot afford to wait until after the employees have spent the money and then proceed to calculating the cost. Using prepaid cards as an alternative expense management method allows you to monitor your budgets in real time enabling you to always be aware of the state of your expenditure.
- Employees Are Given the Freedom to Spend
Using corporate expense or payroll prepaid cards allows you to free up your manpower in the finance and accounting department because they will no longer need to dedicate time to micromanage employees’ expenditures. Furthermore, it will give employees the autonomy to make purchases within set guidelines. Prepaid cards allow you to set those guidelines, hence you don’t have to worry about problems such as overspending. It also comes with the added benefit of giving employees more freedom in managing their entitled budget.
- Your Finance Department gets a Break
Now that prepaid cards cuts down on excessive time spent on duties such as petty cash calculation, reimbursements and processing. Your finance department are now free and you are able redistribute your manpower into doing other activities. Controlling employee expenses with prepaid cards reduces your finance staffs’ workload significantly, which ultimately be beneficial for your business’ productivity.
- Having Control Over Expenditure
Traditional expense policies are open to abuse. Even if employees don’t intend to spend excessively, the nature of ‘spend first, report later’ can easily get out of hand. Expensive lunches and extra cab rides can sneakily accumulate to a sizeable capacity and may even go over the limit. Prepaid cards give each employee a specified amount, requiring them to plan their expenses properly and spend every dollar carefully.
- Monitor Spending in Real-time
The likelihood of fraud increases when expense reports are submitted on an irregular schedule. Employees are left to spend company cash without reporting on it for extended periods of time, and this can potentially lead to occurrence of frauds. Prepaid cards allow you track purchases in real-time. Anything suspicious can be dealt with immediately and effectively before it gets out of hand.
Please visit www.transact24.com to learn more about prepaid cards as an expenses management solution for your business.