The usage of corporate credit cards is increasing day-by-day. Employees on corporate travel prefer spending using corporate cards as they are easy to use and convenient. Though corporate cards ease employees spending, they come with challenges for accounting overseeing the cards programs.
Here we discuss some pressing issues finance executives face while managing corporate credit cards. Let’s see how expense management software can help address the pain points.
Multiple Card Programs
Organizations opt for numerous card programs due to various reasons – credit limits, discounts, and more. Multiple card programs come with a unique set of challenges and can outweigh the benefits.
The key challenges of managing corporate card programs are as follows:
• The need to import card transactions manually
• Tracking credit card statements from multiple providers
• There is no one way to manage and oversee operations
Only a few expense report solutions have the capability of setting direct bank feeds for major credit card providers. Direct feeds make it easy for accountants to log in and reconcile card transactions easily. Cloud-based expense management ensures accountants have complete visibility into corporate cards, irrespective of the location.
Credit Card Reconciliation with Expense Claims
Corporate card reconciliation happens to be the most critical challenge in expense management. Accountants spend hours to figure out reimbursement claims with corporate card transactions. Also, checking for policy violations is another challenge for businesses. Cloud-based expense management solution can automate the reconciliation process as it is easy for them to verify and validate the transactions.
Machine learning algorithms present possible matches for credit card transactions in minutes. This level of accuracy is impossible for humans since there are hundreds of transactions in a statement. When there are multiple card statements, it would be impossible for anyone to verify and validate the transactions.
Since employees are aware of the spending on cards, the matching process can be done quickly. With AI matching the expenses for line items in card statements, reconciliation becomes easier.
Compliance guaranteed with corporate cards
Manual reconciliations require accountants to do a lot of work. You have to review all matched expenses for policy violations. Moreover, corporate card policies differ based on departments, grades, or levels. This process delays the reimbursement process and would result in errors. It results in a significant loss in time and money.
Expense software checks all the expenses for possible violations. When employees match their expenses with corporate card transactions, the expenses are checked for policy violations. This saves time as no money is lost since all the policy checks are automated with no human interaction. Expense software can bring down the time spent on corporate card management by one-fourth of the original time. AI-powered policy checks, direct feeds, and credit cards reconciliations simplify corporate card management.