How To Avoid The Hassle Of Handling Reimbursement Bills?

When running a business, you must get used to making external payments. These can be travel expenses for your employees or accommodation charges for an outstation meeting. The biggest challenge with these payments is handling the reimbursement bills.

Since it takes a while to process and check the authenticity of these bills, it can take time and effort from your end to get the money rolling.

The long wait again causes friction between you and your employees. Is there a way to tackle this problem?

Yes, there is! Issuing a corporate card to employees to handle all business-related expenses is a surefire way to completely avoid the hassle of dealing with reimbursement bills.

What are Corporate Cards?

Like personal debit or credit cards, banks also provide debit or credit cards to companies and businesses. These are called corporate cards. Businesses can create cards for their employees for business expenses. However, the company is responsible for paying any charges made on these corporate cards.

Corporate cards make it easy for employees to spend money for the company without using their own money and waiting to get paid back later. For businesses, corporate cards allow them to easily track spending, set limits on how much can be spent, and permit employees to spend while still being in control. Corporate cards are designed to provide rewards and benefits for the company and employees, which makes them profitable for businesses.

Perks of Using Corporate Cards

  • Helps you scale your business faster

With corporate cards, employees can make financial decisions needed for their roles. Founders can easily track company spending with corporate cards. Corporate cards can connect with expense tracking and accounting software, helping businesses automate processes and grow faster.

  • Reduces frauds

Modern corporate cards have features to prevent fraud. These include setting spending limits, blocking certain categories, and freezing lost or stolen cards. Corporate cards are safe to give to employees. By giving cards to employees, the spending responsibility is distributed. This helps reduce fraud overall.

  • Higher visibility

Corporate cards provide automated alerts for transactions and spending categorization, which gives better visibility into spending. By giving cards to employees, businesses can track all spending within the company—by project, team, or individual employee.

  • Cardholder Ownership

With virtual cards, you can let employees be in charge of expenses. This is helpful when you have many projects with different costs. You can decide who is in charge of each project and give them the virtual cards.

Conversely, when employees spend money with a physical card, the software tells them to submit receipts or other documents to verify the costs. They can upload these from their phone for approval. Employees can check the card’s balance and see all the transactions at any time.

Doing this makes employees feel they have more power over expenses, but it also makes them responsible for the costs.

  • Speedy Availability

A physical credit or debit card takes 2-3 weeks to arrive. But a virtual card can be created much faster, sometimes instantly. You apply for the virtual card through the provider’s app. Then, you may get the virtual card by email or right in the app, ready to use.

  • Global Coverage

Virtual credit cards in Singapore allow payments in different currencies. This is useful if your business has vendors or merchants in other countries that accept different currencies. But before getting a virtual card, make sure the provider offers the currencies you need.

  • Integration with accounting software

Some providers let you connect your virtual credit or debit card to accounting software for free. Your card transactions are then automatically synced to the accounting software, automating the bookkeeping process. It categorizes your expenses and maps them to accounting ledgers, saving you time on financial tasks.

Conclusion

Corporate cards are a great solution for businesses to avoid the hassle of reimbursement bills. They allow employees to make purchases for the company without paying out of pocket. Cards can be easily issued to employees with spending limits and controls. Transactions sync directly to accounting software for easy tracking and bookkeeping. Virtual corporate cards offer extra benefits like fast issuance, global payment options, and cardholder ownership over expenses. By empowering employees with corporate cards, businesses save significant time and effort compared to the reimbursement process. Corporate cards streamline spending, increase visibility, and help businesses operate more efficiently overall.

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