There are advantages and disadvantages to imposing limits on employee use of corporate credit cards. But while there are drawbacks to credit limits, there are also some key benefits that should be considered when deciding whether or not to issue corporate credit cards.
- Ownership?Many companies that issue corporate cards have the cards assigned in the employee’s name. That means that the employees have a vested interest in making sure that they manage their corporate card account wisely, less their personal credit can be negatively affected. Disputes over expenses that are over the limit delay reimbursement, so the employee is a bit more motivated to stay in compliance.
- Integration into Your Expense Report Software and Accounting Software?When coupled with an end-to-end expense report software, corporate card charges can be automatically imported into expense reports, and the system flags those expenses that violate limits; the approver doesn’t have to have all the limits memorized! He or she can kick that expense back if it has not already been justified. This helps ensure accuracy when assigning charges into your GL while also affording you greater visibility and reporting functionality.
Visibility into just how employees are incurring expenses is a great boon to administrators who are tasked with keeping everyone compliant with expense policies. Having a system that quickly highlights out-of-pattern items for review very much improves that much needed visibility.
SutiExpense is working to make life easier for finance administrators, one corrected expense report at a time! Have you found online expense reporting softwares to be a great help in keeping expenses under control? Let us know how the transition from paper to SaaS-based systems made expense patterns more visible and manageable.