Traveling for business is always an exciting prospect for employees as they explore some new aspects instead of the same tasks they perform daily. Still, it can also be a logistical and financial nightmare for businesses. Keeping track of receipts, expense reports, and reimbursements can be time-consuming and cumbersome, not to mention the potential for errors and fraud. This is where a corporate card comes in – it can be a powerful tool for streamlining employee travel expenses and simplifying the expense management process for businesses.
Corporate cards can be debit or credit cards issued to company employees, specifically for business-related expenses. They work similarly to personal credit cards but come with added features that cater to business needs, such as spending limits, travel rewards, and expense-tracking tools so an employer can easily access spending.
Let’s look at some ways that corporate cards can help streamline employee travel expenses:
Reduction in paperwork & manual processes
We are all living in the 21st century, and if we rely on paperwork for all the approvals, then we can never give mother earth the loan we owe from her. So, instead of collecting and organizing receipts, completing expense reports, and submitting reimbursement requests, employees can use their corporate cards to pay for expenses directly. In this way, the employees will not spend time completing paperwork, and thus it reduces the administrative burden on the business.
Increase in visibility and control over expenses
A check on travel expenses also gives businesses increased visibility and control over their expenses. There are options in corporate cards in which businesses can set limits on employee spending, monitor transaction data in real-time, and receive alerts for any unusual or suspicious activity. This helps businesses identify and address potential issues quickly and proactively rather than relying on reactive measures.
Streamlined expense reporting
Corporate cards can also help to streamline the expense reporting process. Rather than manually entering and categorizing expenses, many corporate card programs offer automated expense tracking and reporting features. Transaction data can be automatically imported into expense reports, making the process quicker and more accurate. Additionally, many corporate card programs offer mobile apps that allow employees to capture receipts and add them to expense reports.
Improvement in cash flow management
Using corporate cards helps businesses to manage their cash flow better. Employers do not have to reimburse employees for expenses; they can use corporate cards to pay for expenses directly. This can reduce the time it takes for expenses to be reimbursed and help businesses better forecast their cash flow needs.
We know that many debit and credit cards come with rewards on expenditure. So there are corporate cards offering travel rewards and benefits that can help businesses save money on travel expenses. The rewards include cashback on travel purchases, airline miles, hotel discounts, and travel-related benefits such as travel insurance, concierge services, and airport lounge access.
Corporate cards are a savior tool for streamlining employee travel expenses and simplifying expense management processes. They offer on the plate a range of benefits, be it reduced paperwork, increased visibility and control over expenses of employees, streamlined expense reporting, improvement in cash flow management, and travel rewards. To streamline the expense management processes and reduce the administrative burden associated with business travel, businesses should consider using corporate cards as part of their strategy.