It’s almost always undoubtedly a hassle when your employees need to spend money on behalf of the company. Due to various reasons, corporate credit cards cannot be given to all staff, reimbursing employees requires a process, and petty cash receipts are inevitably misplaced. Use of traditional expense methods for employees isn’t a given – so why not change it? The time is ripe to look for an alternative that can streamline your expense management system, and save your company money and time! Listed below are five reasons to highlight when looking at a prepaid card solution for your company.
- Employees can only spend what you allow.
This might be common sense – but consider this: with traditional employee spending models, the employee spends money first, justifies it later. Additional cab rides, pricey meals – we’ve all seen it. Employees aren’t always intent on taking advantage of the organization’s expense policy, but often times its capacity is spent. With prepaid cards, employees have a designated amount to spend, this requires them to budget their allotments more wisely.
- Use Prepaid to stick to a project or a program budget
With a tight project scope or budget, all of the additional expense dollars add up. Common expense methods allowed you to only learn of the actual cost after an employee submits an expense report. Waiting until after employees have spent the money to tabulate your budget is something that doesn’t have to be done anymore. With prepaid cards, supervisors can monitor the budget as it is accrued.
- Spot early signs of fraud by monitoring spending in real-time
The likelihood of fraud increases when expense reporting doesn’t follow a regular schedule and employees are given extra opportunities to spend on the company dime. With these systems in place, monitoring in real-time will notify you of any suspicious purchases. This will allow you the ability to stop them before it becomes a pattern.
- Prepaid gives your employees the freedom to spend
Corporate prepaid cards aren’t just about limiting spending – it enables accountable spending! Granting employees the autonomy to use funds when necessary (within set parameters) frees up your finance team from micromanaging every purchase.When you set the guidelines prior to the purchase, you can relax when thinking about how money is going to be spent.
- Prepaid gives your finance department a break
Your finance staff will spend less time on policing other employee spending by enabling controlled employee spending with prepaid cards. This translates to less time spent by you on processing expense reports, issuing reimbursement checks, and distributing petty cash to employees.
Please visit www.transact24.com to learn more about prepaid cards as an expense management solution for your business!