There are so many ways now to pay for business expenses, bills, and invoices. You can do automated processes, have different kinds of cards like debit and credit card, and set up direct debits. So many new and innovative options, in spite of that, companies still use the old fashioned company credit cards and expense reports procedures.
In this article, I will introduce you to the smart company cards, such as prepaid and virtual cards, and show you how easy it is to use them and handle all expenses hassle-free.
Company credit cards
Still today, CFOs and managers choose to use credit card option to pay expenses of their employees, because it is easy to use by everyone, as you just need to pick it up and pay with it like with the personal one. So it looks convenient, but there are several disadvantages to it if you compare it with other modern and advanced solutions.
It works as the personal credit cards, they are just connected with the account of your business, which makes it simple to use, just like their personal ones, although the procedure afterward makes a difference. It is because it does not matter if your team member pays with card or with cash, your employee still needs to provide proof of the payment (like a receipt, invoice or contract) to the management or finance department which creates tones of paperwork, and keeping all the receipts and invoices for a long time makes the whole credit card option still a hassle.
Although the management or finance team receives a monthly statement of the credit card spendings, they will be aware of all costs after the payment has been made, so the costs can be a surprise every month. This could be avoided if you have a spend management software, where they can check all the movements in real-time, but banks do not provide this feature with their credit cards usually, as they are not created especially for business expenses. Yes, banks have online platforms usually to handle payments, but most of the time the usage of them is quite limited or not user-friendly. Sometimes only a manager or one authorized person can ask for details of movements or raise limits, or at all ask for the bank balance. And if this person is not around, then all the payment procedures pauses and takes a lot of time.
Furthermore, if you just provide credit cards only some of your team members or just the very trusted employees then it could create uncomfortable situations with the rest of the team and also leads to creating tiring expense reports, so at the end, the card does not solve your problem and finance management needs effort again. It is normal with credit cards that you do not want to provide it to anyone at your company as CFOs should not forget about the risk that employees can lose their cards or use the bank details on not trusted webpages which could lead to stolen company money and fraud.
What are the better options?
Prepaid company expense cards
Smart companies use smart solutions for their expenses. A prepaid or pre-loaded card offers flexibility, especially for a fast-growing small business. At first, you would think that it is exactly the same as the credit cards. You need to hold a plastic card, you have money on it and you can pay with it. But there are two main and very big difference comparing to the normal credit cards.
Firstly, they are not connected at all to the account of your business, but to a virtual bank account, so you lower your risk of any fraud and money loss of your company. Furthermore, as its name shows, it is already pre-loaded so employees cannot spend more than you provided them, so you will not face any surprises and you can calculate with the expenses more easily when creating a well-detailed budget plan for your business. You could say that you can also limit credit cards, although if you set up a limit on them it will apply to all company cards. With pre-loaded smart cards, you can manage all issued cards one by one, set up budgets for every single card with different amounts. So if you know, that one of your members of a whole department spends more than the other usually, you just load more money on those.
Companies that provide prepaid cards also come with expense management software with what CFOs and finance teams can easily track all movements in real-time, approve requests on-the-go with a mobile application, and control spendings by categories or departments easily. With that, you empower your teams but still remain in full control of all spendings.
Haslle can offer all of these options mentioned above. Haslle prepaid cards look and work just like the credit cards, but gives you more security, flexibility, and all the above-mentioned features and solutions to make your team happy, create hassle-free and effortless expense report procedures and have full control any time of your finances with defined budgets in advance.
If you are interested in it, just try it out for free by clicking below:
Is there any even better solution?
Virtual company cards
Virtual cards are also prepaid company cards, but you can expect, they are not physical cards. So when you pay with it you do not need to carry with you a plastic card, just know the details of your virtual one.
It is the most convenient and easy solution for digital payments and especially for only subscriptions. All payment processes can be simply automated, so for monthly invoices for the same tool or service does not need to go through all the approval processes every single month, you can just issue a virtual card for your team and set up the direct debit and save a lot of time and effort.
Virtual cards are also a much more secure way to pay online as they are created individually for each payment, so there is no way, that someone can use this information and stole money for the companies account and spend more money than you agreed to.
If you issue a virtual card with Haslle, you can use it immediately. You do not need to wait for a physical card and a PIN code, then activate it. You can easily grant the needed money to your employees any time with full control and without risk, which gives your team members great freedom while you are fully aware financially.
How to get a virtual or pre-loaded credit card for your company?
Haslle can provide you both options and with even more additional possibilities and features. Haslle is a software that your business needs for budget planning, expense tracking, and finance management. If you have Haslle, you have a tool that makes spending management effortless, a mobile application that allows you to approve expenses even on-the-go, and the possibility to issue pre-loaded and virtual credit cards with virtual IBAN number which is connected to the budget and easy to change any time. You can set up these budgets individually, or by teams and departments and you can adjust them in a simple way one by one. You do not need to fill out different forms to open a bank account and receive multiple paper mails to activate them, with Haslle it is just a simple click and you have everything you need within a couple of days. Be financially aware all the time with full control, but still empowering your teams with giving freedom to them with Haslle.
Would you like to see how it works? Just click below: