If you are a contractor and work with subcontractors, leveraging a prepaid expense management solution can seriously simplify your financial process.
This would give subcontractors the ability to make supply purchases using only the funds made available to them on their prepaid card, eliminating the need for you to go to the store or deal with a tedious reimbursement process.
A prepaid card can be issued when someone comes on board, then deactivated when the job is done, allowing you to work with subcontractors on temporary projects. And where a traditional credit card or charge card could be abused by a temporary employee or subcontractor, a prepaid card has restrictions that will help prevent potential fraud. With both flexibility and accountability, business prepaid cards can make working with subcontractors run more smoothly.
Another perk of using prepaid cards is having funds easily accessible. Contractors working on building and repair projects need to be able to purchase necessary supplies on the spot. It’s less convenient to bring cash for large amounts of materials, and using a worker's personal credit card can make it difficult to separate business and personal expenses.
Having a separate prepaid card for on-the-job expenses can also greatly simplify your accounting process. No more dealing with cash, waiting for expense reports to come in or worrying about fraud. And most platforms, such as PEX, integrate with your existing financial software for seamless data entry.