As budgets get slashed in a slowly recovering economy, it is vital to know exactly much money is necessary to pay for required expenses such as employee travel. With such little room for error you don’t want underestimating employee travel costs to put you over-budget. This requires research, like looking into how much gas will cost and finding affordable hotels. Then, you’ll need a plan for how employees will cover these expenses while traveling.
Giving an employee cash can be an easy way to cover funds for a quick trip. However, this method can lead to potential problems. Cash is more susceptible to theft and if you underestimated costs or if there is an emergency, then the employee is left covering additional costs. If you’ve given too much money for the trip, it can be difficult to collect and keep track of the change.
Corporate Credit Card
If a trip does end up costing more than estimated, a credit card can easily cover the additional costs, unlike cash. This makes it easier for employees on-the-road to cover expenses as needed. This flexibility can also be a detriment, since costs could balloon far above what you expect and you may not find out until the bill comes.
Corporate Prepaid Card
Keeping the budget intact without leaving employees short on funds can be achieved by using a business prepaid card for on-the-road purchases, offering both flexibility and accountability. The estimated travel funds can be added to the card before an employee departs. If more is needed, they can call or email you, and you can add funds to the card so they will be available immediately. If not all the money is used, the rest can easily be put back into the main account. You can adjust the budget in real time and will not be surprised by what a trip ends up costing.
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.