Improving Business Expense Management With Prepaid
Are you looking to improve the way your business manages its expenses? Prepaid cards present an adaptable and flexible alternative payment option that can help businesses manage and gain visibility into their expenses in a variety of ways.
Processing and Reconciliation Made Easy
In the old days, managing business expenses was a long, drawn-out, and convoluted process. Expenses reports had to be filled out, receipts scanned or photocopied, and files had to be manually submitted to accounting to be processed. Claims and receipts and contracts had to be properly examined and matched before expenses could be paid out. These expenses would then be paid via cheque, which takes a lot of time and costs your business money.
Today, however, there are alternative payment and expense management solutions that are accessible online, mobile friends, and streamline the process. Prepaid payments help trim the costs and remove the risk of outdated and inefficient expense management systems and allow your business more opportunities to grow and succeed.
Prepaid Can Help Your Small Business
Many small businesses have problems with expense management, especially when it comes to employee expenses. Often times, small companies rely on a single corporate credit card, which is then shared amongst employees. This can create problems with reconciliation–the process of ensuring that the amount of money leaving an account matches the actual money spent–especially with temporary staff, contractors, or those without access or eligibility to use credit.
“Many small businesses have problems with expense management, especially when it comes to employee expenses. Often times, small companies rely on a single corporate credit card, which is then shared amongst employees.”
Traditional methods of tracking spreadsheets, invoices, and managing budgets are time-consuming and expensive, and offer no advantage over new, technology-drive alternatives. A full-time, well-expensed employee will incur expenses such as travel, meals, and equipment. It is estimated that traditional expense reporting can cost a business $2,000 a year in time and productivity per employee. Things get even more murky and confusing when it comes time to report finances for taxes.
Lack of up-to-the-minute accounting and reporting means that a business owner never has a clear idea of how much funds are available, or how much funds are going out. Giving each employee their own unconnected business credit card also opens up the business to multiple problems related to liability or misuse. In the corporate business world, why would business owners take on such needless risk?
Managing Business Expenses Doesn’t Have To Be Complex
Prepaid is an efficient and simplified way to handle expenses, for businesses both big and small. Prepaid corporate cards have stored value, easy interaction with mobile apps, real time reporting, and security procedures in place to protect against lost or stolen funds.
With prepaid, management or ownership can distribute funds to a multitude of employees whenever necessary. Emergency or last-minute funds can be added whenever necessary, and any unused funds can be taken back if needed. Funds can be added or removed instantly, and the entire process is seamlessly carried out online. Cards that are not in use can be turned off until necessary, ensuring funds are not misused or mismanaged, limiting liability to the business. Purchases and transactions are tracked and categorized to enable easy analysis and reporting, and all data can be sent to business owners to streamline tax reporting.
As a business owner, you should be focused on growing your business, not running around dealing with receipts and complicated expense reports. You also shouldn’t have to stay up at night worrying about your finances. Free up your time and money and make the switch today.
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