If you're a business related to entertainment and travel employee expenses will make up about 10 percent of your budget. When you send your employees out on the road you have to account for all their costs from gasoline, to lodgings. You can imagine this creates quite the paper trail. It also causes bookkeepers to have to shake employees down for receipts and some of these receipts can get lost while the employee is moving around.
You also have to account for employees who may or may not lie on their expense reports. There has to be a better way to keep up with this stuff! Well, there actually is.
Here are ten advantages for using company credit cards.
1. Cash Rebates
The most visible advantage to company credit cards is the annual cash rebate on purchases. This can vary from one percent to five depending on the provider and the types of purchases that are made.
Imagine you're a company that spends around twenty million on operating expenses and around three million on travel costs. A rebate of $50,000 or so isn't too unrealistic in this case. This could pay for a subscription for an expense report software which works great hand in hand with credit cards.
2. Better Control of Spending
Issuing company credit cards make it easier to keep track of company spending. Use the card for all of your business's monthly outgoings on your monthly statement. No calculator needed.
It's also true that most providers will provide you with a business expense report at the end of the month.
3. It's a More Straightforward Way to Process Expenses
Giving out cards makes the expense management process a lot more straightforward.
By directly importing credit card statements into the expense report you allow for small transaction details to be collected. In short, the employee adds in the relevant details on to their reports like billing codes, or client data. The expense management system can then send this data directly to the ERP allowing for clients to be billed quickly and accurately.
4. Reduce Expense Fraud
When employees take pictures of receipts and turn them in there is always room for expense fraud.
It gives them the ability to tip higher on a restaurant's copy of a receipt, buy items and then return them, or if they are booked for an expensive flight, downgrading once the expense has been processed.
Supplying your employees with a card will eliminate the possibility of dishonesty because when statements are directly imported the exact amount will be taken out every time.
By paying with the card it will be impossible for the employee to make any returns as well.
5. Positive Credit for Your Business
Everyone can benefit from positive credit, especially your business. Issuing company credit cards allows you to build your business credit.
This means that your company will receive a higher level of trust from lenders. Your credit is also a reflection of how your business grows and develops. This is another way you can show your lenders and potential investors that you're credible.
Many business credit cards will offer you special rewards for spending. If you use the card for most expenses you really rack up reward points.
If you want a good idea of what this entails, it includes business and supply discounts, and travel and insurance rewards.
7. Always Be Protected
Business credit cards can offer you an extra layer of protection that others can not. Some examples include travel accident coverage, identity theft coverage, and many misuse policies.
This will give you a little bit of peace of mind when you send your employees out on business trips.
8. High Spending Limits
Company credit cards offer higher spending limits than normal credit cards. This means that you will be able to spend more on your business if you need to.
You can buy more supplies, and afford put your employees in higher luxury when you send them out to conduct business in your name.
9. It's Easy to Use
Using a credit card is a lot more convenient than just simply writing a check. You can use your credit card online, or over the phone which makes transactions faster and easier.
Speed means everything when conducting business and convenience will put you at ease while you're doing it.
10. It Makes Your Employees Happy
Allowing employees to use your company credit card builds a level of trust between you and them. Letting those who travel for you frequently use a card allows for them to pay for expenses without having to dip into their own pocket.
If your organization only runs expense reimbursements 1-2 times a month then that could cause the traveler to have to pay for their credit card bill before their expenses are reimbursed.
When your employees are happy and morale is high, they will perform much higher than those who are miserable or angry. Not only this but if you're sending the employee out they shouldn't have to pay for their own expenses.
You Should Consider Supplying Your Employees with Company Credit Cards
Company credit cards can a great asset to supply your employees with. They make it faster to conduct business, they're easy to use, have high spending limits and amazing perks. With that reasoning, it's a win-win for everyone involved.
A credit card can increase workplace efficiency but there are many other things that can do that too. Visit for our blog for different ways to increase your efficiency.