How prepaid cards can simplify business spending and boost accountability
As a business leader, you are constantly trying to find ways to streamline spending and cut costs without losing quality or staff loyalty.
Prepaid cards may be the solution for you. By setting up some of your staff with these, you are able to preload them with a set amount of money for them to complete business transactions with. With most providers you can set a limit on the type of transactions they can be used for, as well as the amount.
Doing so allows you to keep control of your finances as well as enhancing accountability. Let’s take a look at why prepaid cards may benefit your business.
Enhancing financial control
Being able to be across all areas of your business’s finances is a key part of running a successful enterprise. Prepaid cards allow you to have a larger degree of control whilst still being hands-off surrounding purchases.
You can monitor spending in real-time and allocate funds to different projects whenever needed. This is an easy way to adhere to budgets and reduce any unnecessary spending.
Boosting employee accountability
Strategically, you will likely assign the prepaid cards to employees that have proven their trustworthiness, or who are in senior roles. By linking expenditures to individuals, you are making them accountable for the spending.
This level of transparency reduces the likelihood of misuse, either accidental or intentional. It also makes your job easier as you can identify spending and users at the click of a button.
Streamlining expense management
Administrative tasks take up a lot of time as a business owner or manager, so finding ways to cut this down is helpful.
Prepaid business cards allow you, or your admin team, to generate expense reports at the click of a button, saving you hours on collating and chasing people for receipts.
You should also be able to integrate your prepaid cards with your accounting software. This makes creating VAT returns and other types of financial reports a breeze, saving further time and preventing human errors.
Human errors can cost your business a lot of time and money. You will probably end up on the phone with HMRC to rectify things, which can take up your time. You may also pay too much tax if it isn’t discovered in time, leaving your financial plan out of kilter until a refund or solution is issued.
Mitigating financial risks
Unfortunately, intentional misuse needs to be considered when it comes to trusting others with company money.
Overspending and fraud are issues that need to be tackled sensitively and quickly when they are identified. Prepaid cards help to reduce the risk of both overspending and fraud by having predefined limits. Crucially, as they are preloaded, they are not linked to the company’s main bank account, meaning if any improper use does occur, the fallout is minimal.
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Prepaid cards may be the solution for you. By setting up some of your staff with these, you are able to preload them with a set amount of money for them to complete business transactions with. With most providers you can set a limit on the type of transactions they can be used for, as well as the amount.
Doing so allows you to keep control of your finances as well as enhancing accountability. Let’s take a look at why prepaid cards may benefit your business.
Enhancing financial control
Being able to be across all areas of your business’s finances is a key part of running a successful enterprise. Prepaid cards allow you to have a larger degree of control whilst still being hands-off surrounding purchases.
You can monitor spending in real-time and allocate funds to different projects whenever needed. This is an easy way to adhere to budgets and reduce any unnecessary spending.
Boosting employee accountability
Strategically, you will likely assign the prepaid cards to employees that have proven their trustworthiness, or who are in senior roles. By linking expenditures to individuals, you are making them accountable for the spending.
This level of transparency reduces the likelihood of misuse, either accidental or intentional. It also makes your job easier as you can identify spending and users at the click of a button.
Streamlining expense management
Administrative tasks take up a lot of time as a business owner or manager, so finding ways to cut this down is helpful.
Prepaid business cards allow you, or your admin team, to generate expense reports at the click of a button, saving you hours on collating and chasing people for receipts.
You should also be able to integrate your prepaid cards with your accounting software. This makes creating VAT returns and other types of financial reports a breeze, saving further time and preventing human errors.
Human errors can cost your business a lot of time and money. You will probably end up on the phone with HMRC to rectify things, which can take up your time. You may also pay too much tax if it isn’t discovered in time, leaving your financial plan out of kilter until a refund or solution is issued.
Mitigating financial risks
Unfortunately, intentional misuse needs to be considered when it comes to trusting others with company money.
Overspending and fraud are issues that need to be tackled sensitively and quickly when they are identified. Prepaid cards help to reduce the risk of both overspending and fraud by having predefined limits. Crucially, as they are preloaded, they are not linked to the company’s main bank account, meaning if any improper use does occur, the fallout is minimal.
