Making purchases with a standard credit card puts you in debt until you pay the monthly bill. A prepaid business credit card draws on a reserve of cash put in place when you sign up for an account with a card issuer. Money is either loaded directly onto the card or into a dedicated account and is deducted each time you make a purchase. When the cash is gone, you can choose whether or not to add more money to cover future expenses.
Migrating your spending to prepaid cards can create more balance in your budget by transforming the way you approach business expenses. Maintaining a balanced budget can be a struggle for business owners, especially if spending has gotten out of hand. It’s easy to feel confused and overwhelmed when you’re juggling multiple forms of payment. Switching to a prepaid business credit card cuts down on confusion by streamlining spending across the company.
Instead of pulling out a stack of receipts come tax time, you could have a clear and categorized list of prepaid card transactions. This not only makes accounting easier but also streamlines your record keeping. Since prepaid cards are loaded based on available spending money, you can provide amounts in line with your budget and avoid unexpectedly plunging into debt.
Giving employees prepaid cards for company expenses puts you in complete control of how much they can spend. There’s no way for them to add money to the cards or draw extra cash out of your account, and you can monitor every transaction to make sure the funds aren’t being misused.
Since anyone in your company with a prepaid card can only spend the amount they’re given, you don’t have to worry about projects going over budget or being faced with staggering credit card bills every month. You get the same flexibility in spending as a regular credit card without the risk of going in the red.
Some prepaid card services, such as those from Bento, have an app from which you can check where and how funds are being spent, change spending limits on employee cards and add money to cards at any time. Only you as the business owner can make these adjustments; employees don’t have access to the dashboard, and all transactions between you and the app are SSL-encrypted.
If you’re having trouble keeping employee spending in check or are experiencing problems with employee theft, using a prepaid business credit card could be a viable solution. These cards are also useful for reigning in overall spending and keeping a closer eye on your company’s budget. When finances seem like they’re more complicated than they should be or spending habits have gotten too lax, it could be time to make the switch.
Using a prepaid business credit card to consolidate finances and monitor spending has clear benefits for your company. With more control, less loss and easier tracking of finances, you can concentrate on important business activities instead of wasting valuable time worrying about the budget.
If you’re looking for a prepaid business credit card solution, call Bento today to learn more about setting up an account, or get started right away with a 60-day free trial and see how Bento can help take the hassle out of business finances.
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