Inevitably, there comes a time in a business where employees need the flexibility of a credit card to make purchases. The corporate credit card eliminates the need for employees to take the financial hit and wait for reimbursement, and spending is more easily controlled by the business itself. No matter if it is a ream of paper for the office or dinner for clients, the purchasing card frees up the purchasing process.
Before embarking on a purchasing card program, look into a program or service that monitors the cards. Taking the step to use a corporate card service eliminates the need to dedicate employee resources to the task of watching who is doing what with the cards, and also saves money.
Who uses the card is dependent on the size of the company. A smaller business may want to have cards for the principals in the business and maybe one authorized purchaser. The smaller business has an easier time of controlling expenses, as they can check usage frequently, and make changes as needed. Banks that offer corporate credit cards for small businesses frequently add rewards programs, so don’t hesitate to pick and choose. Those who travel can benefit from getting points for hotel rooms to airline miles, and others offer percentages back on certain purchases.
Larger businesses that issue cards to employees have a much different set of issues to deal with with corporate cards. The part about deciding who gets one and why is relatively easy to figure out; what requires more work is ensuring that the costs do not get out of hand by careless users.
A corporate card setup requires a certain level of monitoring to keep spending at a reasonable level. To that end, spending limits can be set for each individual user. One person who just needs to purchase $100 in office supplies every couple of weeks is set at a lower limit than someone who needs to procure important services for a production.
Giving employees some autonomy with spending corporate funds has both benefits and downfalls. Take the steps to analyze all of the aspects of handing out cards before even obtaining a service. Doing so manages to eliminate many nasty surprises that may pop up unexpectedly.