There are lots of ways to manage expenses, but so many businesses still choose to use manual processes like Excel spreadsheets. According to the Expense Management Trends Report 2016 by travel and expense management company Certify, 70% of small businesses are still relying on manual expense management tools.
Managing Your Expenses
Paul Thedinga, VP of strategic alliances at expense management firm ExpenseWatch, thinks controlling the tool that allows employees to make purchases can help managers greatly. Thus, keeping control just on the tool that enables employees to record the purchases is not enough if managers need more adequately-managed spending.
ExpenseWatch has recently announced the launch of a Visa prepaid card, which is developed in conjunction with PEX. Thanks to this card, managers can set spending limits and other controls for their employees. As Thedinga mentions, business owners who allow their employees to either expense or make purchases are worried about people don’t use it with 100% accuracy.
Thedinga notes today’s businesses need to control their funds much closer than ever before. This refers both to large and small companies having multiple locations where employees are switching from site to site and making purchases.
There is No 100% Accuracy
Even when a controller or treasurer identifies fraud or another type of counterfeit corporate funds, it is often too late to save the situation. Thedinga notes there is no perfect model in this concern. You can always have employees who can do things accidentally or make mistakes. On the other hand, there are always those who take goods and money from a company intentionally.
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When it comes to prepaid cards, Thedinga believes they can make employee spending be more transparent. This can be realized through enabling businesses to know how much, where and on what they will spend before making a purchase.
As prepaid cards can allocate a certain spending limit, managers can apply limit adjustments to the necessary basis and keep control over the money being spent. As a result, managers will make better decisions about where money is being spent and how. Meanwhile, they can control things at the administrative level, keep employees well informed on what they should buy and where they should buy it.