With the proliferation of mobile apps and online banks over the past decade, it has never been easier for consumers to make purchases on the go. However, for company finance teams tasked with managing employee expenses, these increased freedoms have posed new challenges.
Where once, an employee's expenses would be handled through the use of a company card and reimbursements from petty cash, employees are now booking their travel through their mobile devices and using a variety of online accounts and personal cards for their spending.
This has resulted not just in fragmented expense claims, but marketing is now being directed at the employee rather than the company they are spending on behalf of.
Other than payroll, the way companies spend money can be divided into two broad categories.
The first is spending initiated by the company, which can include areas such as:
The second is spending initiated by the employees, such as:
While both types of spending are budgeted for by the company, employee expenses are more difficult to budget for strategically, let alone manage and control.
This is because the amounts are often small, frequent, and made by multiple employees using different methods of payment. It has not been until recently that solutions have been available to manage today's employee spending.
The key to gaining complete control over employee expenses is to install a system that:
Our spending management solution includes a prepaid business card and mobile app for employees and an admin dashboard through which the finance team can manage and control employee expenditure.
Our Soldo business card works like any other credit or debit card, including cash withdrawal and contactless payments. The difference is that the finance team, through the dashboard, set spending limits by topping up prepayments and can monitor and control costs in real-time.
Our solution works with major accounting software so that expense activity can be analysed to provide useful insights for future strategic growth.
Rules and limits on our cards can be customised individually, from the amount an employee can spend, to where and when the cards can be used, right down to whether or not a card can be used online.
With real-time monitoring and control, the finance department already has an up to date record of employee expenses. The app allows employees to photograph and send images of receipts immediately.
Both eliminate the need for compiling an expenses claim at the end of their trip, and the time-consuming process of going through receipts for approval and reimbursement.
Our prepaid card system means that employees don't need to spend their own money and wait for reimbursement. Employees can conduct their business reassured that they would never be out of pocket at any time during the course of their work, thereby improving morale and staff retention rates.
Our automated expense management solution offers a long-term approach to reducing overspending and improving cash flow without causing a negative impact on business. Please visit us here for a more detailed look at what we can offer, or contact us directly for more information as to how we can help your company take back control of its spending.