Frequently asked questions
Business expense cards - The benefits
Business expense cards come with a number of features:
- Limited access to funds: Cardholders only ever have access to as much money as you decide to give them.
- No credit check: You’re eligible for a prepaid business card even if you don’t yet have a substantial credit history or if you have a shaky one.
- No maximum quantity: You can give as many prepaid cards as you like to as many team members as you like.
Soldo’s prepaid business cards come with a number of additional advantages:
- No risk of overspending: You can add extra rules and limits, to define how much cardholders spend and where they spend it.
- Real-time transaction data: You can view transactions as they happen, and turn on notifications to let you know if there’s a payment there shouldn’t be.
- Simpler expense reconciliation: You can see who’s spending what at all times, store photos of receipts and export data into integrated accounting software.
- Simpler accounting: You can upload transaction data straight into your accounting software, and seamlessly integrate your console with Xero’s bank feed.
- Good for morale: Your employees won’t need to pay out of their own pockets – they can do it all with their business expense card, and submit the details via the app.
Is a business expense card right for my business?
For startups and SMEs, they’re particularly useful because you won’t need to provide a credit history when you haven’t been around for long enough to establish one. But they’re good for big businesses too. You can have lots of cards in circulation at once without sacrificing oversight, so you’ll be able to give them to individual departments, contractors and freelancers.
Do business expense cards work with accounting apps?
Using Soldo, for example, you can export and import transaction data to popular accounting apps like Quickbooks. Soldo’s payment control console also integrates seamlessly with Xero’s automated bank feed and accounting APIs.
This will give your accountants unparalleled insight into how money is being spent and where your expense policy can be tightened up. They might also be able to identify patterns in spending you can avoid as you continue to grow.
Do I need a credit check with a business expense card?
Keep in mind that while you can’t damage your credit score, you also won’t be able to improve on your existing one with a business expense card.
What are the alternatives to business expense cards?
There are a variety of alternatives to prepaid business cards.
Ask your team to pay: You could ask staff to cover their own expenses and then reclaim what they’re owed at the end of the month. But this can be a drain on morale, and may make things tough for those who don’t have the money to spare. Plus, they’ll need to devote a certain amount of time each month to filling in expense claims and tracking down old receipts.
Use petty cash: Petty cash is a traditional way of paying for small-ticket items, but it isn’t appropriate for big purchases, or those that need to be made online. It can be easy to lose track of, too, and you might not know who’s spending it and where.
Use credit and debit cards: Credit and debit cards provide the flexibility and independence of business expense cards. But there are no rules or adjustable limits to choose from, or real-time tracking, which means you’re likely to lose money to misuse.
No matter how big your team gets, there are all sorts of ways to stay in control of company spending. Read on to find out how.