How do companies control what their employees spend?
Happy employees are more productive and tend to stay loyal to a company. There are various incentives that firms can offer to employees but, ultimately, hard cash is a significant factor. Staff need to feel valued and trusted. They also expect to be financially rewarded – not penalised – for their contribution to the company’s success.
So, in addition to making sure they are paid on time, it is also vital to ensure they are never out of pocket through paying for business expenses out of their own funds. Likewise, companies need to keep a close eye on what their employees are spending. So what are the best ways to control employees’ expenses?
Control employee expenses with a prepaid business card
The traditional method of staff using their own money to pay for travel, food, petrol and other legitimate expenses has significant drawbacks. Employees can end up out of pocket as they wait weeks for the money to be reimbursed. They must also keep all of their receipts, which is easier said than done.
An increasingly popular solution is to issue them with a prepaid company card such as those provided by Soldo. This ensures that the employee is not out of pocket and the company is in control of the finances. The accounts department can transfer money onto our prepaid card and see how, when and where the money is spent via the Soldo dashboard.
Ensure full visibility
Once the prepaid business card is used, the transaction shows up on the Soldo dashboard. This means that the accounting team can see transactions in real time, top up cards or set limits on cards if they are being incorrectly used.
The information can also be exported so that the financial management team can evaluate how and where the money is being spent. This puts the business in control over how much employees are spending, and employees are no longer using company time submitting expenses; it’s all done instantly and automatically.
Set the ground rules
Each card can have its own set of rules. There’s no credit limit like you would typically get with business credit cards. The company decides how much money to transfer and can freeze the card if something appears amiss.
Finance teams can also determine how and where a given team member’s card can be used. For example, one card may only be used in the UK or another may be limited to fuel and accommodation purchases. This is all controlled from within the dashboard, with the levels and rules being unique to each card. Make sure there is also an employee expense policy available for staff to have a clear understanding as to what is considered appropriate business spending.
Maximise system integration
With our dashboard, all the information about employee expenses is held in one place, so no more distributing petty cash for each department or logging expense sheets and receipts. Soldo’s dashboard works with major accounting software solutions such as Sage, Xero and Quickbooks, so it is easy to incorporate the data and generate automated expense reports.
This data can be used to identify any patterns and trends in spending, such as seasonal peaks and troughs, which can then be accounted for. It may be possible to negotiate discounts or special rates if it’s found a particular product or service is being widely used.
The expenses can also be isolated by department, individuals or type of payment so the firm can see where the money is going. If a department is found to have notably high outgoings, this can be taken into account when setting departmental budgets.
You can find out more about how our cards, web console and mobile app can benefit your business by getting in touch today for further information and advice.