The market size of the credit card issuing industry hit an incredible US$156.7bn in 2021. There is clearly no demand shortage, which could be because of the many advantages you can gain from using credit cards. You might even already enjoy using one in your personal life.
But, have you considered the potential gains of using corporate credit cards for your business? You probably already use many tools to run a smart workplace to assist your teams. Therefore, it could make sense to include credit cards as part of your company spending strategies.
Read on to learn how using corporate credit cards can benefit your business.
Better Spending Control
You trust your key employees and have no hesitation in allowing them to make purchasing decisions. But, this doesn’t mean every transaction is necessary or provides the best value for money. It can be time-consuming to gather expenses information that includes payments by cheque, cash transactions, and bank transfers.
But, if employees spend company money on a corporate credit card, it is easy to view their statements and ensure you are satisfied with the payments. If not, you can place spending restrictions on cards to reduce the risk of paying over the odds for products and services.
You can also enforce vendor restrictions with your staff. This may be necessary if you suspect a particular company is overcharging your employees.
It is even easier to manage your expenses when using a card-based spend management platform such as corporate cards with BentoForBusiness.com.
Eliminate Expenses Fraud
Unfortunately, some employees can take advantage of having a workplace expenses account. For example, staff could pay for first-class travel arrangements and get a receipt for the purchase. They could then downgrade to an economy service. Although they get a refund of the difference to their own card, they might present the first-class receipt to their employer.
This fraudulent behavior can be difficult to spot and could cost your company a significant amount of money. But, when staff are using corporate credit cards, you can see what purchases employees are making and if they receive any refunds. You can then have more confidence that staff are using company money in the right way.
Boost Employee Morale
When employees have their own procurement cards, it means they are not out of pocket. It can be frustrating for your staff if they have to pay for business costs upfront and wait for reimbursement. You could find your team is much happier when they are spending company money instead of their own.
Consider How Corporate Credit Cards Can Help Your Business
Running a business is challenging, and you’ll want to use any helpful tools that can streamline your processes and make your life easier. When you use corporate credit cards, your accounting processes can be more straightforward. Your staff can also get on with their jobs without constantly asking you to reimburse expenses.
You’ll also have a much better overview of your company’s spending. This could help you identify areas where you can reduce costs.