When you are running a well-established business, there will be a time when you have to hand out company funds to your employees for executing the dedicated operations or to compensate for the employment perks such as fuel, food, house allowance, etc. Handing cash to the employees will make it difficult for the company to manage the expenses.
Therefore, you need to implement smart restrictions on the employee’s expenditures. And what’s better to do it than using business prepaid cards for employee expenses? The prepaid cards for employee expenses will help you track the money proficiently and in real-time, in just one click.
The employees won’t have to spend their money on business expenses and then apply for reimbursements. A pre-loaded credit will help them stay within the limits while making the business or allowance expenses, as specified.
Depending on how you manage your expenses, are business prepaid cards the right bet for your employee expense management aspects? Read this article till the end to find out!
The Built-in Expenditure Limits for the Business Employees
The business prepaid cards for employee expenses come with built-in controls within the application for setting the spending limit. It will ensure your employees aren’t spending the money and crossing the allotted budget. The employers will have the feasibility to load money annually, monthly, or project.
This way, you can set a specific budget for your employee expenses for an entire year. Your profitability will be measurable, and all other operations will be streamlined.
Challenges that Companies Face Without the Use of Business Prepaid Cards
What has led businesses to plan on introducing prepaid cards for business expenses? Why do employee expenditures on business and allowance spending need to be monitored, restricted, or tracked? Some of the challenges that the companies often face in terms of handling employee expenses:
1. Month-End Hassles
If you are running a thriving business, there is a high chance it will continue to excel, and more employees will join your team. It will become tedious for the HR and accounts team to manage the expense when the team grows and the reimbursement files increase.
Issuing reimbursements is very strenuous and often leads to miscalculations and inaccurate budget predictions. It is because all of the reimbursed expenses will be reconciled and then added to the final accounting of the business, which substantially adds an immense burden.
2. Overspending Problems
When the employees are instructed to spend their money to handle business expenses or pay for allowances in a month, they tend to spend without boundaries. Ultimately, when they file the reimbursement reports, the expenses are often beyond what the company expected.
Even though the business authorities can instruct the employees to keep their expenses within limits, it is still virtually not impossible to expect everyone will or can strictly adhere to it. Hence, this leads to chaotic negotiations between the employees and employer, which affects brand reputation.
Overspending is also a problem for the overall productivity of the business. Suppose a digital marketing campaign has been promoted multiple times over a social media channel by spending beyond the specified budget, but the returns are not up to the mark. In that case, there will be a considerable loss for the firm.
The amount that the company was prepared to spare for the marketing campaign was exceeded by the employees, which led to losses beyond what they were prepared for.
How Do Prepaid Business Cards for Employee Expenses Help You Overcome These Challenges?
The above-mentioned challenges are the two critical discrepancies that businesses are experiencing in terms of handling employee expenses. But this can be dealt with! FidyPay introduces prepaid business cards that you can load with credit and impose complete control over the expenditures made by the employees.
There are tons of features and benefits that you can acquire upon switching to FidyPay business prepaid cards for employee expenses. If you want more clarity on what you can expect upon investing in this change for your business accounting solutions, then here are some benefits we have to offer:
1. Streamlined Management of the Budget
FidyPay’s business prepaid cards will allow businesses to set desired spending limits on each card. It means you can set different spending limits for a digital marketer and a department manager.
For instance, suppose you are in a logistics business and have analyzed the last month’s data to determine that the drivers will need a maximum of Rs. 5000 for fuel expenses while performing their weekly duties.
In that case, you can set the prepaid card’s limit to Rs. 5000 per week to ensure they don’t spend more than that. In this way, your business expenses, on the employee front, will always be on a budget.
2. Real-Time Expense Tracking
You can keep track of real-time expenses through the dedicated application to monitor how employees spend the assigned money for business operations. It means one can track if an employee is overspending for an operation that can be done at a minimal cost. It will help the management offer proper guidance and training to the employees.
Following that, you will also be able to learn the daily expenses of your business from the employees’ end. Hence, the business finances can be pre-planned to keep the funds available for optimal distribution among all employees to meet the thriving business needs.
3. Limit the Employees to Spend on Specific Products or Services
Now you might have a question: how would you know that the allotted amount is being used for the exact purpose it was credited for? It is an obvious and legitimate question because even with the set limits, it becomes difficult to determine how much employees spend within the specified time window.
It is important for the management to monitor or track the expenditures of employees that they do from prepaid cards. It will help the business re-allocate the funds from one account to use for some emergency expenses associated with other employees.
To help make this a feasible approach, FidyPay’s prepaid cards for business expenses have a feature to restrict the usage of credit for availing specific services only. Suppose a prepaid card is issued to your delivery vehicle driver for fuel. In that case, he can use those funds only at a recognized fuel pump, as the funds can’t be used for buying or availing of any other services or products.
4. Automatic Expense Reconciliation
When assigning business prepaid cards to your employees, you don’t have to worry about making manual reconciliations for preparing the final reports. All of the transactions that the employees make will automatically be loaded onto the system and will also be reconciled.
The accounting operations will be streamlined, and the dedicated team will save a lot of effort and time in reconciling employee expenses individually. Moreover, the cash flow will also improve for your business! It is because you can move your money easily and quickly through a singular platform, prepaid cards.
5. Supports Easy Integration With All of Your Other Accounting Systems
The business prepaid cards for employee expenses by FidyPay will extend support for you to integrate them with your existing accounting solutions. In this way, all the updates you get on employee expenses and other accounting details will be updated centrally for the dedicated department to keep a holistic track of them.
Hence, this feature will ensure that all of your expenses across the business stays synced and accessible by respective team members at all times.
6. Easy Loading & Withdrawing of Funds
As per your business policies, you can provide access to dedicated employees for loading money onto the employee cards every week, month, or year, as per specific assessments. It is a very easy procedure with FidyPay’s intuitive control panel! If some employees need to spend on something that doesn’t accept card or online payments, ATM withdrawals can also be made with prepaid business cards.
FidyPay Brings You an Excellent Way to Manage Your Employee Expenses!
FidyPay brings you the next-gen business prepaid cards for employee expenses! With our technology backing your business needs, you can expect to attain quick approval & activation, enable offline & online payments, make balance transfers, and do much more with a centralized control application.
We are versatile in offering you prepaid business cards of all types. Whether you want one for your employees to be within budget while spending it on business expenses or want to give gift cards with pre-loaded credit for them to make desirable expenses, we have the feasibility to offer you both.
We also offer retail, payroll, online shopping, general purpose, allowance, and other prepaid cards to further streamline business operations. Get in touch, and we shall discuss more about your business needs and how our prepaid cards can make a difference.
So now, you are completely aware of how prepaid business cards will help you manage employee expenses and eventually enhance the productivity of your business. All you need to do is run data analysis on the business expenses without the prepaid cards and then decide on setting the limit for employees in each department. When you finish that, let FidyPay handle the rest of the prepaid cards for your employees.