What are the best ways to manage business expenses?
The finance department is arguably the most important part of any small to medium enterprise. Without accurate, well managed financial data, business owners cannot see how well the firm is doing and decide upon strategies for improvement.
The curse of SMB’s
It is common, however, that in many SMEs a finance department normally comprises less than one employee, a part-time finance controller or even the business owner trying to keep on top of the finances themselves.
With so much riding on this function, it’s crucial that business owners create streamlined efficient processes and management systems for company expenditure.
A common pitfall in many small to medium businesses is the handling of employee expenses. This is a frustrating task for both the employee and the employer which can become a significant overhead in any business. That said, inefficient management of company spending can create terminal problems in some SMEs.
Employees begrudge spending their own personal money on expenses and then having to waste precious work time on claiming the reimbursements. Conversely, finance departments are often left with large unexpected payments to make each month when an employee processes their expense claims. This can put a real strain on the cash flow of a smaller business and employee morale can be adversely affected if the claims are not paid promptly.
How to take control
Here at Soldo, we have created a solution to address the issues faced by both employees and business owners. Our prepaid business card allows expenses to be managed in a far more efficient manner.
Once companies get a prepaid debit card, such as those offered by Soldo, the card will allow business owners to issue employees with individual prepaid cards, or virtual cards, to handle all expenses. The finance department can set limits on spending, and restrictions as to what the card can be used for and where it can be used.
The benefits of the prepaid business card for the SME include:
• Control: the card is controlled by an administrator (usually the finance department).
• Dashboard: Limits and restrictions are set in the dashboard, which the administrator can change at any time.
• Data: the finance department has access to real-time data on expenses, allowing for more accurate cash flow management.
• No fees: unlike a company credit card, there are no monthly fees or interest charges on the prepaid card.
The benefits for employees:
• Reduction in expenses pre-funding: Employees no longer have to pay for expenses from their own pocket.
• Additional funds: If the employee needs additional funds, these can be added to by the finance department instantly.
• Cash: the card allows employees to draw cash from a cash machine, subject to the agreed rules for the cardholder.
• Mobile app: The Soldo app allows employees to take a picture of a receipt and upload it to their dashboard. The platform then pulls out the key data from the receipt, removing the need for the employee or finance team to input data.
• Online spending: a virtual card can be created by the administrator to allow employees to make online purchases using the card.
This prepaid business card allows better handling of expenses for both parties. The dashboard integrates with all major accounting software including Xero, Concur, Expensify and more.
Limits and restrictions on each card can be individually set for each card, making the card bespoke to the individual user. Spending restrictions can even be set on types of spending and geographical locations, for example, travel expenses in the UK only.
A level playing field
There are significant benefits for the small business owner in the context of control, visibility and insight. Soldo’s prepaid business card also puts all team members on a level playing field when it comes to expenses. All too often, startup business credit cards are reserved for those in higher management positions, which can demotivate junior staff who are required to manage their own expenses out of pocket. Our card means that no employee is left out of pocket at the end of the month.
This is just one of the spending management solutions from Soldo. We are already empowering proactive, decisive, forward-thinking businesses to take control of employee spending and to keep a closer eye than ever on company expenses. Click here to find out how a Soldo account can help you cut down the hours of manual expense processing and devote that time to growing the business.