According to the Small Business Administration, small businesses in the U.S. employed more than 56 million people in 2016. While a solid team can help bring in profits for any organization, employee expenses can slip through the cracks. Managing spending can be a challenge for small business owners. Using prepaid business credit cards can help you gain control over expenses and save money.
Expense reporting
It’s imperative for companies to understand where every dime is being spent. Having access to financial analytics can help small businesses repair expense reporting issues.
In many small businesses, the same people who use the business credit cards are the ones who are managing expense reports. It’s easy for fraudulent or unnecessary expenses to evade the eyes of those in charge.
Entrepreneur says that employee credit cards may not be worth the trouble. Your staff members are often busy doing their jobs, and they may fail to report spending in a timely manner. Plus, harping over the issues caused by company cards can lower morale.
Still, empowering employees by giving them corporate credit cards is one key to high satisfaction and productivity. Make the process smoother for everyone involved by using prepaid business credit cards. All of the funds come from the same bank account, and you don’t have to hassle with paying off different invoices or writing checks back and forth.
Avoiding credit card abuse
If your employees begin to use business credit cards for personal expenditures, you might think that you can take legal action and recoup the misappropriated funds. Unfortunately, credit card companies don’t see it that way.
If you authorize a user on your credit card account, the bank assumes that any purchase made by that individual is approved. By paying the bill, you are essentially endorsing all of the transactions on the statement.
Many company owners assume that because banks offer fraud protection services, they can monitor their business credit cards for inappropriate use. Regrettably, that would be impossible. Smart Business explains that carefully auditing employee credit card use can help thwart dishonest spenders. Using prepaid business credit cards with real-time reporting can alert you to misuse before it gets out of hand.
Minimizing risk
Although you can set a credit card’s maximum spending limit, you put yourself and your bottom line at risk when you give employees access to rotating funds. Every month, the company pays the statement, and your personnel can continue to spend.
Using prepaid business credit cards decreases the opportunity for out-of-control spending by your employees. It also lowers the risk that comes with taking out a line of credit.
Every time you or one of your team members uses a traditional business card, your company’s credit could be affected. Prepaid business credit cards don’t influence your credit in any way. That also means that you can use them to streamline spending even if your credit is less than stellar.
The right prepaid business credit cards give you stringent control of your budget without adding time-consuming responsibilities to your financial department. Bento for Business offers secure prepaid credit cards for business that let you sit in the driver’s seat.
Because you can load Bento’s prepaid credit cards for business from anywhere and track usage in real time, you will simplify spending. Try Bento for Business for 60 days with our free trial. You can get instant access by calling 866.220.8455 to find out how we can help make your business more efficient.
