Avoid Letting Employees Use Personal Bank Cards For Your Business Expenses

Some SMEs allow employees to use personal bank cards for work-related expenses, reimbursing them later. This practice not only burdens employees but also increases the workload for the accounting team, making it harder to track expenses and manage the company’s finances efficiently.

How does this impact your business on various levels?

 1. Financial Level:

• Some expenses may not be accurately reflected in financial reports due to reimbursement delays.
• The company lacks immediate visibility into actual cash expenses until the employee submits reports or receipts for reimbursement.

2. Administrative Level:

• Reimbursing employees requires extra time and effort from the accounting department, raising administrative costs.
• Some employees may not follow company expense policies, resulting in unnecessary or unjustified spending.
• When employees use personal bank cards, tasks such as record-keeping, managing expense reports, and monitoring for fraud become more time-consuming, adding administrative burdens and reducing efficiency.

3. Moral and Organizational Level:

• Delayed reimbursements can result in late fees or interest charges for employees, harming their financial reputation and increasing costs for the company when compensating them.
• Employees may lack sufficient funds to cover business expenses, causing disruptions to work.
• Some employees might feel uncomfortable requesting reimbursement for small expenses, opting to cover them personally.
• Employees frequently misplace receipts needed to verify payments, creating complications for both the company and the employee.

Knowing all this, it’s time to stop relying on your employees’ personal bank cards and switch to a more efficient solution!

But what’s the alternative?

As a business owner, you might consider using your personal card to control expenses while sparing your employees from using their own. This approach has its perks such as earning rewards, cashback points, and discounts on travel and hotels. However, from a financial management perspective, it can introduce several complications, including:

• Difficulty controlling company expenses when multiple people use a single card.
• Sharing your personal card information with others, which reduces your financial security.
• Blurring the lines between personal and business expenses, making it harder to prepare accurate financial reports.

Even if you issue multiple prepaid or credit cards for your business, you may encounter numerous banking procedures, making it difficult to obtain enough cards for each department and even harder to monitor and manage spending.

Nqoodlet offers a streamlined solution to simplify financial management across all levels of your company.

With Nqoodlet, you can instantly issue prepaid cards to each team member and track all payments through a single platform:

• Your employees no longer need to use their personal cards, and you won’t have to chase down receipts.
• You can issue unlimited prepaid cards to employees and easily top them up through the Admin account with just a click.
• There’s no need to hand over cash for work expenses, you can instantly transfer funds to their Nqoodlet cards.
• Each employee will have their own card, eliminating the need to rely on a single bank card. You’ll gain complete visibility into their spending, including amounts, transactions, and timelines.
• You can effortlessly manage and monitor all company expenses and issued cards, and even approve or reject transactions, all from a single platform with the click of a button.

Summary

Adopting fintech solutions for expense management has become an essential tool for saving money, time, and effort while boosting productivity. At Nqoodlet, we combine virtual and physical prepaid cards with a comprehensive expense management platform to give you insights into your company’s spending, empowering you to make informed decisions that drive efficiency and profitability.