Employee Credit Cards: Take Control of Spending with Business Credit Cards
If you’re a small-business owner, you know how important it is to control spending. As your business grows, you should consider using employee credit cards to help you manage expenses. Business credit cards cut down on the need to write checks and reimburse employees, and they offer the convenience of built-in expense documentation. Here are three tips for managing an employee credit card program that will keep you aware and in control of spending activity.
1. Set limits. Business credit cards are designed to help you control how much money your employees spend and where they spend it. With an employee credit card, you can set up restrictions to ensure transactions do not exceed certain dollar amounts. You can also limit employee credit card use to businesses in certain categories or countries – or even to certain days or times. Employees’ expenses typically vary based on their responsibilities, so you should choose a business credit card that allows you to set different restrictions for each cardholder.
2. Put it in writing. Create a written agreement that clearly lays out your business’s credit card policies. Have your employees read and sign it, and provide them with a copy they can reference. This will help ensure they’re aware of their limits and budget when using their employee credit cards.
3. Be alert. Look for a business credit card that will allow you to set up text message or email alerts to notify you when an employee uses – or attempts to use – a card in an unapproved way. This will enable you to address any issues in a timely manner and keep your budget under control. Even if you’ve set up spending restrictions and alerts, you should still regularly review account activity and statements using small business online banking.
Control and monitor spending with debit cards for your small business checking account If you prefer purchases be instantly deducted, consider getting employee debit cards for your small business checking account. Like business credit cards, employee debit cards provide detailed documentation of your transactions and allow you to set up usage restrictions. Plus, they offer you the ability to make ATM withdrawals from your small business checking account. Whether you choose employee debit or credit cards, make sure you follow these tips to stay on top of spending.