Offering corporate credit cards to your employees may make a lot of sense for your small business, especially if you have employees that travel frequently. Corporate cards also allow employees to make quick purchases on items that they need to complete a project, which means increased efficiency. Whether you’re a website design company or an accounting firm, offering employee’s corporate credit cards can be very beneficial. But, corporate cards should be monitored closely:
- Be sure you have a clear policy on which expenditures are appropriate or create a policy that all expenditures over a certain dollar amount must be pre-approved. Add the policy to your employee handbook.
- Have employees fill out an expense report which details the date of the purchase, the vendor, the price and the purpose of the purchase. Also, be sure employees are turning in all receipts related to their purchases.
- Make sure purchases related to client projects are labeled appropriately. Use project numbers or codes so your accountant doesn’t go crazy trying to figure out which expenses are related to which projects.
- You can also consider setting a low limit on employee cards. So, if an employee wants to make a purchase over $1000 for instance, they would be forced to get authorization from a manager.
- Be sure to look for a credit card that offers a low-interest rate and great rewards. If your company is making a lot of purchases on these cards you might as well earn cash back or frequent flyer miles.