When your employees need to spend money on behalf of the company, it’s undoubtedly a hassle. Corporate credit cards can’t be given to all employees, reimbursing employees takes too long, and petty cash receipts are inevitably lost. Using traditional expense methods for employees doesn’t have to be a given – so why not change? It’s time to look for alternatives that can streamline your expense management process, and save your company time and money! Below are five reasons to consider a prepaid card solution for your business.
1. Employees can only spend what you allow. This might seem like common sense – but think about it: with traditional employee spending methods, the employee spends first, explains later. Extra cab rides, pricey lunches – we’ve all seen it. Employees don’t always intend to take advantage of the expense policy, but they often spend to it’s capacity. With prepaid, employees have a set amount to spend, requiring them to budget their expenses more wisely.
2. Use prepaid to stick to a project or program budget. When you have a tight budget or project scope, all those extra expense dollars add up. With common expense methods, you only learn of the actual cost after an expense report is submitted. Don’t wait until after employees have spent money to tabulate your budget. Using prepaid, you can monitor the budget as you go.
3. Spot early signs of fraud by monitoring spending in real-time. When expense reporting doesn’t stick to a regular schedule and employees are allowed extended periods of time to spend on the company dime, the likelihood of fraud increases. Monitoring in real-time will alert you to any suspicious purchases, allowing you to stop them before it becomes a pattern.
4. Prepaid gives your employees the freedom to spend. Prepaid for business isn’t just about limiting spending – it enables authorized spending! Giving employees the autonomy to spend when necessary (within set guidelines) frees up your finance staff from micromanaging each purchase. When you set the controls in advance of the purchase, you can relax about how money is going to be spent.
5. Prepaid gives your finance department a break. By enabling controlled employee spending with prepaid cards, your finance department will spend less time on the other elements of employee spending. This means you’ll spend less time processing expense reports, cutting reimbursement checks, and distributing petty cash.