Most of the time, corporate credit cards are appropriately used for legitimate company expenses. Sometimes they are misused. The misuse could be purposeful or simply the result of miscommunication. Either way, the result can be damaging to a small business with a tight cash flow. In this case, the best defense is a good offense. By building in accountability and communication, you can go a long way toward limiting misuse of company cards.
Credit cards tend to cause an open spend mentality. The price doesn’t matter because it’s on the company. If cost expectations aren’t discussed beforehand, the resulting expense could be much more than anticipated and you might not even know there’s a problem until the credit card bill comes at the end of the month. By then, the damage has been done.
So how do you keep the ease of credit cards while limiting this potential misuse? A great place to look is a prepaid corporate card. The sky isn’t the limit when only the necessary funds are transferred into the account. Both parties know what something is expected to cost and there aren’t big surprises at the end of the month.
Most employees want to do right by the company and want to know what is expected of them. No one wants to be called on the carpet when the bill comes in. A prepaid card can open the lines of communication and make these expectations clear, which can result in better cash flow and happier workers.