How frustrating is it for you as a business owner, when despite the best intentions of your employees, you have tremendous trouble keeping them accountable for expenses when they are out of the office?

We have all seen way too many times when receipts are lost and the purchase was made with cash, rather than a credit card or debit card. It’s difficult to trust that the reimbursement requested was legitimate. If you fronted the employee with a cash advance, it’s even more concerning. Plus, the company has no record of the transaction, causing further accounting nightmares at tax time.

Expense control can also be a problem when employees co-mingle their personal credit cards with business charges. Obtaining the paperwork from the employee in a format that is workable for them, the company, your bookkeeper and accountant is not so simple or efficient.

We have heard all kinds of stories from our clients about how difficult it was to keep employees accountable for business expenses because they did not have an expense management solution that was convenient for all parties.

They have told us that the PEX Card Service has improved their ability to control and manage employee expenses while eliminating their inefficient old reimbursement processes.  The full set of benefits associated with providing their employees with a prepaid debit card, combined with PEX Card’s real-time monitoring, tracking and reporting capabilities has enabled them to not only save time and money but also has improved the satisfaction of the employees who have to deal with expense reimbursement.

Listen to the testimonials from a sampling of our clients using our prepaid card service. Click here.

Keep your employees accountable with a service you can count on.

Labels: Accounting, expense management

In a poor economy bankruptcies become a regularly reported item in the media.  For a lot of those businesses, going into bankruptcy is a simple restructuring of debt or a way to protect themselves while they are in repair mode.  The fall out here, especially for small sized companies, is the impact on a company's credit worthiness, their ability to get credit, or even a credit card for that matter.

The PEX Card Service may be a solution for businesses that are having trouble getting credit but are still operating, selling their products/services and have people out in the field.  Because we offer business prepaid debit card services, all the spending is pre-funded with cash deposits.  Our online tools give businesses the transaction visibility and spend controls that banks and credit card companies do not provide with traditional credit or bank debit card accounts.

Labels: Credit, expense management, reloadable prepaid debit cards

A word that is used quite frequently in the financial community is “visibility."  It has often been attributed to the ability for publicly traded companies to provide guidance on their future business performance.  But more importantly, visibility is critical for small and mid-sized businesses to accurately and quickly assess their cash flow position and determine in a timely manner how, where and when their cash is being expended.

What we are hearing at PEX Card:
A number of our clients using the PEX Card Service have typically relied upon traditional  business company credit cards for employee business expenses.  However, too frequently the business owner is surprised at some of the expenses their employees had charged when the bill finally arrives weeks after the spending occurs.  By using the PEX Card Service, our clients now can better manage employee expenses and cash flow with the unique benefits of a prepaid debit card and the associated real-time monitoring, tracking and reporting capabilities.

We are thrilled with the feedback we have received.  As more small business owners recognize that there is a terrific alternative to credit cards, one that is a reloadable prepaid debit card that can save their company's time and money, they have come to appreciate the expense management solutions built in to PEX Card.

Listen to the testimonials from a sampling of our satisfied clients. Click here.

Improve your visibility. Take a look and see for yourself.

Labels: Credit, expense management, General Info, reloadable prepaid debit cards

In this economic climate businesses trying to rely on credit cards to float monthly employee expense purchases has been tough.  Banks are finicky and have been pushing available business credit lines downward for about a year now.  For some small businesses, this poses more of a logistical problem than a financing problem because normal employee spending is maxing out limits before the end of the month.

So what are businesses doing?  For some, giving cash to employees is the best answer simply because of its flexibility.  Many companies have incorporated cash-based processes to reallocate and redistribute spending across multiple payment mediums.  In this world of web and technology, going back to cash payments (paper vs. plastic) may seem a bit retro, but for many small companies its a fact.

Managing a cash advance process or petty cash program is time consuming to run.  Companies want to provide the best environment for their employees to complete their jobs while also keeping track of money going out the door.  In companies with any amount of monthly transaction volume, this can be quite daunting to keep up with and keep accurate.

The solution we provide - the PEX Card Service - enables businesses with tools for issuing funds to employees on Visa prepaid debit cards which are controlled by administrators at companies through online tools.  Any business with employees who need to spend and have any amount of daily or weekly volume will benefit from using PEX Card.

For more information, view our video demo online or listen to customers talk about how they use PEX Card day to day.

Labels: Cash Flow, Credit, expense management

Our clients often describe the ways they integrate the PEX Card Service into the normal flow of day to day operations within their small businesses.  One case in particular is quite interesting.

The Problem:
How to manage, fulfill and organize multiple requests for funds on a daily basis so crews in the field can buy the supplies they need for their various jobs and then manage billing accordingly so clients are charged properly and profitability per job can be measured?

The Solution:
Combine using the PEX Card prepaid debit card service with internal process around request and fulfillment management so that the right information is captured and the process is efficient.

How:
The business owner establishes daily budgets per card for everyday purchases such as fuel for work trucks.  For supply purchases, crews pull the items they need at the supply store and estimate how much the transaction will cost.  They call in the amount and an admin at the office logs into the PEX Card admin site to fund the card, while at the same time creating a PO number that is linked to the job.  The number is noted on the sales slip which details the purchase.  Crew members turn in the receipts and sales slips every couple of days so they can be matched up.  The business uses the CSV report provided by PEX Card to track which items are submitted and which are pending.

Once in place, a prepaid card for business like PEX Card can combine funds disbursement and supply purchase tracking in a way much more simple to manage.

Labels: Accounting, Budgeting, Business Process, expense management

When business owners are considering whether to give out business credit cards or corporate cards to employees a number of questions come to mind:

• In these times of tight credit, are the benefits of handing out corporate cards worth the risk of impacting my credit?  Corporate cards will be linked to my personal credit - if i need to refinance my house, my equipment or vehicles, a revolving credit card line may impede my ability to do so.
• If I give out a credit card, can't the employee just run up the bill?  Most small business credit cards or corporate cards are open spend cards.  This means employees can spend the entire credit limit (even for legitimate transactions) and I won't even know about it until the statement shows up.
• How do I deal with misuse from a disciplinary standpoint?  If employees do make unauthorized purchases - at what point do you risk firing people who are otherwise good employees.
• By giving out a corporate card to an employee, will it make them feel like they have an expense account?
• Will the credit line be enough to support my company's needs?  Smaller credit lines are a simple fact of doing business in a post bank crisis economy.  Companies no longer have access to large lines unless their companies are large or business owners are willing to co-sign the card account.

For every day employee spending, a business credit card may not be the answer for most small businesses.  Now that a business Visa prepaid debit card like the PEX Card Service exists, companies facing the list of questions above can provide cards to employees with less worry.  PEX Card offers prepaid debit cards for business.  We link online tools to cards to give employers full control and visibility of employee spending.

With the advanced controls of the PEX Card Service, businesses can feel more secure about handing out funds to employees, but track them more closely because they are electronic and minimize credit risk.

Labels: Budgeting, Cash Flow, Credit, expense management

Our clients often describe the ways they integrate PEX Card prepaid debit cards into the normal flow of operations traffic within their small businesses.  One case in particular is quite interesting.

The Problem:
How to manage budgeting and spending for employees stationed all over the country who need fuel, supplies and other ad hoc items?  Credit cards are not a favorable option and there is no efficient method to get cash to people in a cost effective or timely manner - so it all needs to be managed centrally from the home office.

The Solution:
Combine using the PEX Card Service with internal process for requests and fulfillment management so that controls and communication are in place to meet the needs of employees and the company simultaneously.

How:
Employees are issued prepaid debit cards which are funded with an initial budget, predetermined based on estimates and job need.  As employees spend they save their receipts and complete a form from time to time.  Cards won't be reloaded until the report is submitted (electronically) with a scan of receipts.  If the employee needs their budget allotment changed, the home office can review spending to determine how much their budget should be so the process runs efficiently. 

A system like this can combine funds disbursement, budgeting and accounting procedures in a way that keeps employees on the move while the home office can keep their books on schedule.

Labels: Accounting, Budgeting, Business Process, Case Studies, Cash Flow, expense management

For new businesses starting up, being able to pay for new equipment and services easily helps get things up and running more smoothly.  But for new businesses getting a credit card is next to impossible unless the business owner personally guarantees the line.  Bank debit cards are an option but companies don't generally like them as there is a direct link to cash in the bank, card balances are unsegregated and tap into a single pooled account balance, there is ATM and check access and you have to wait for statements to view a breakdown of spend per cardholder.

New businesses come to PEX Card all the time for our business prepaid debit card service because we provide an organized way of managing cash employees can use in a controlled environment.  What's more, funds allocated to this account are kept separate from main operating funds and are laid out to provide visibility into what people are doing, while controlling misuse.

PEX Card helps early stage companies avoid problems with misuse, other mistakes and helps minimize wasted time.  Have a look at our demo for a close look.  Thanks for reading!

Labels: Business Process, Credit, expense management, Petty Cash

Over the last several weeks we've been hearing more about abrupt changes to credit lines on business credit cards. Since last Fall, conversation in the press has circled around the effect the credit crunch is having on consumer credit card accounts relative to purchasing power and commercial loans but now it is affecting business credit card accounts too. Companies are finding it difficult to conduct normal daily spending activity and they are unpleasantly surprised when cards suddenly stop working mid-month without warning.

Companies in most industries are being hit hard by bank tightening. When credit limits are suddenly imposed or lowered without advanced notice, reaching newly imposed limits is problematic because all cards are blocked from further use until the bill is paid. This is disruptive especially for companies with employees that are in the field spending ad hoc for supplies, fuel and other business expenses.

New credit limits reported are lower than what companies spend monthly irregardless of clean credit and payment history. If limits are lower than the amounts companies need to operate at a bare minimum, credit cards will quickly lose their value as an effective payment tool in business. The card industry has proven to us that card spending is more efficient, can minimize risks of managing cash and can streamline check or cash operations through simple distribution, especially compared with cash and checks.

Companies are being forced to look for alternatives and they are finding the PEX Card Service. We designed the service to put businesses back in control of their cards. Using our administrative web site, corporate admins can view employee spending in aggregate, and can determine when, where and how employees use company cards. Each prepaid debit card has an adjustable balance for budgeting, individualized spending and funding rules for control, and reporting of up to the minute transactions for transparency and immediate cash position. Companies account for this as a cash account, appearing as an asset on the books, not as a liability. Funds in the account are prepaid, so credit limits are self managed. Funds can be transferred electronically to and from company checking accounts for maximum flexibility.

As conditions force change in the way business is conducted, it is good having access to tools that fit the times. Even though credit might be tight, companies can still benefit from using cards to keep their books straight, keep employees on budget, lower bookkeeping costs and maximize any access early payment benefits vendors may offer for paying with plastic.

Labels: Accounting, Budgeting, expense management, PEX Experiences, SMB Tips

Due to the current economy - limited available credit and layoffs - we are noticing changes to the processing and management of employee expenses. Traditional methods are under fire as staff members are increasingly uncomfortable with fronting cash for their employers.

Shrinking access to consumer credit is causing weariness among employees about using their personal cards for corporate purchases. Instead, employees have started asking for cash advances. Employers are now having to rethink their positions on:

• Providing cash advances. A manual process that, depending upon the amount, could even entail a trip to the bank.
• Issuing a corporate check for advances. Also manual and requires days of advanced notice....not possible for those sudden trips.
• Issuing corporate credit cards. Perhaps even expanding the corporate card program beyond the comfort level of owners and executives.

The expense reimbursement system businesses have relied upon for so long is being challenged, and the process now requires some thought and adjustment.

Our corporate reloadable prepaid debit card is a perfect solution! Now, employers can provide cards to employees that do not qualify for the corporate credit card program. Online tools make tracking spending easy and we eliminate the risk and safety issues of providing cash. You can manage spending closely by setting merchant and spend limits per employee, or for trusted employees, let them track their own card balance using our cardholder website. Funding cards is easy and can be done quickly using our online tool.

While it is difficult to accept that things are changing all around us, we, as business owners, need to embrace new ideas to help us grow our business.

Labels: expense management, PEX Experiences

To stay on budget - and protect your margin - you need to track and control expenses. Unfortunately, it sounds easier than it often is.

There are lots of expenses that are easy to track - you probably have a stack of invoices to prove it. But, in entertainment, there are a lot of purchases and payments made in cash, which is much harder to track and verify.

To deal with the cash problem you can do a few things. First, and most expensive, is to hire an account. This professional will be on location with you and will be in charge of all the financials, like petty cash and sales, and reconciliation. Second, you can use an accounting software package and track the expenses yourself (or designate someone you trust to be responsible for it). This can be time consuming and you need to stay on top of it, but you will have a thorough understanding of where every penny is going. Third, you can use a controllable corporate card. Whether you use credit or prepaid, like the PEX Visa Prepaid Card, it doesn't really matter. What you'll want to look for is a card that allows you to control how employees spend money - by merchant category and amount. The fastest way to implement changes is via an internet interface, so look for a company that is able to give you real-time capabilities - for making changes to an individual's spending rules or reporting.

Once you know what you're spending and how that aligns with your budget, you'll know where you need to start controlling expenses. Maybe it's catering, maybe it's your PAs, or maybe something else. Each situation is different, so we can't spell it all out here, but think of a few ways you can try to rein-in these expenses. For catering maybe you can cut back on name brand sodas. For fuel, maybe you can get a lower grade. The most important thing is to make sure you recoup the excess funds from any petty cash purchase. You already know this, but that's where of lot of the slippage will be.

If you like to see a demo of how PEX Card works, and how it might help your next production or tour, click here.

Labels: Budgeting, expense management, Finance Tips, Petty Cash

One of the biggest ways companies can improve cash flow as well as the bottom line is to cut costs. Yet cutting costs without impeding growth can be a delicate balancing act. In order to navigate the tight-rope here are our top 5 tips for effective cost cutting:

Engage employees -
http://findarticles.com/p/articles/mi_m3495/is_11_48/ai_111170582
If you keep a dialog open, employees are on the front lines and can point to some of the best cost cutting measures.

Focus on variable costs -
http://www.morebusiness.com/running_your_business/profitability/Controlling-Costs.brc
Make a list of which costs absolutely must stay so that you don't end up cutting something you need, which could cost you more in the long run.

Don't cut valued perks -
http://www.fastcompany.com/blog/heath-row/cost-cutting-gone-wrong
While taking away those unnecessary perks may seem like good decision-making, it can adversely affect morale and decrease productivity.

Utilize free ad mediums -
http://www.atouchofbusiness.com/business-topics/cost-control/advertising-rates-00013.html
Advertising is an important way to attract new business and it doesn't have to cost an arm and a leg. Look into opportunities for free advertising in order to complement your current ad campaigns, but make sure they don't compromise the integrity of your brand or appear in places you find questionable.

Value Experience and Talent -
http://startup.partnerup.com/2008/09/15/cost-cutting-mistakes/
Cutting out costly employees might seem like a quick way to fix the budget, but this often entails spending time on choosing and training new hires that don't have the same experience and talent.

Labels: Budgeting, Cash Flow, expense management, Finance Tips

What do you need to know as you decide on a per diem rate for employees or negotiate a per diem rate with consultants and contractors? It can sometimes seem like a random number pulled from the air, but there a number of per diem rate considerations that you should be aware of.

Federal Rates
As we’ve mentioned here before, the federal per diem rates can play a significant role at tax time. On the plus side, they provide valuable guidelines. That said, it may be easier to work with only one rate, or maybe you don’t feel the federal per diem is adequate. But beware - any amount above the federal standard rate is considered additional compensation, and with that comes all the tax implications of wages.

Receipts
No matter what you decide on per diems, make sure that the actual spending and recuperated funds are accounted for. This is for your own records as well as for the IRS. Without them your system will not be considered an accountable plan, and you and your employee may be getting a tax bill.

Electronic Payments
The big advantage of having a per diem rate instead of reimbursable expenses is that you pay a flat fee and don’t have to worry about all the incidentals. Take it a step further and manage your per diems electronically to improve allocation and recuperation documentation.

Labels: Accounting, Expense Fraud, expense management, IRS, Per Diems, Travel Expenses

Our CEO Toffer Grant was interviewed for a podcast on StartupBizCast.com. The interview was posted today and is available here.

The interview is less than ten minutes long and covers expense management in small business. Toffer explains a little about what we do, offers tips for better expense tracking and suggests that cards are a great way to stay organized, because transactions are recorded online and on card statements if the receipt is lost .


Many thanks to Steve Mullen for the interview!

Labels: expense management, Finance Tips, interview, PEX Card News