Every growing business faces challenges when it comes to maintaining transaction records. Employees pay from their pocket, or business owners pay from their savings for tools, inventory, and more. This creates a challenge for the finance department as they must maintain the record for every transaction.
A company credit card can help the organization track and manage expenses easily. If you are also looking forward to streamlining finances in your organization, company credit cards can be your best option. Here is a detailed guide regarding the company credit card for you to explore.
Corporate credit card: Meaning
A corporate credit card performs similarly to a personal credit card but is specifically for businesses. Employer issues the card to the specific employee or department for all business costs. Companies issue these cards to their employees so that they can pay for their expenses during their business trips or meetings. Furthermore, since the companies manage the cards directly, the admin can monitor the activities and set transaction limits. So, if used efficiently, corporate credit cards can contribute significantly to the organization’s growth.
Due to the numerous advantages, SMEs and startups are increasingly moving towards corporate cards as it helps them keep track of the cash flow within the organization and curb any extra expenditure by imposing budget control. In addition, it is a flexible way of paying your bills and earning certain rewards.
Benefits of using company credit cards
With the advancement in the digital era, maximum transactions are now cashless. This is because online transactions are quicker and more convenient to use. Organizations are now using company credit cards to pay for expenses anytime an employee is traveling for work to avoid paying reimbursements. This allows them to avoid using their own money during work-related traveling.
- No personal liability
Regarding company credit cards, the organization is liable for payments and not any individual. Though companies can monitor the transaction in real-time, it is necessary to make a clear policy for employees to understand the use of company credit cards.
- Expense management in real-time
Using a company credit card helps ensure the organization has complete control and visibility over its budget. To manage your business costs in the best way, you can set an upper limit that can be used by employees and does not have to worry about making reimbursements to them later.
- Higher spending limit
Compared to personal or business cards, company credit cards have a significantly greater limit on the amount of money you can access. They frequently have variable credit limits based on the expansion of your company. This is quite advantageous because your credit limit increases as your needs grow.
- No reporting hassles
You will not have to perform the process manually when making reports or documenting card transactions. These company credit cards are linked to an application you can access to download the card statement or check the transaction status, hence zero reporting hassle.
- Reduced extra expense
Using a corporate credit card gives you greater visibility of expenses made by the employees. It helps the audit and finance team spot fraud, maintain the records, and pay on time without missing any payments. Thus, with a corporate credit card, you can save extra money or save yourself from unnecessary expenses.
- Better credit score
Every individual or organization must aim to maintain a higher credit score as it increases their creditworthiness. The higher the score, the easier it will be to avail yourself of a loan, as the lender will see you as a risk-free borrower. You can build your company’s credit score with a company credit card.
- Rewards and cashback
Organizations receive rewards and benefits on certain payments. Corporate cards provide excellent business-related incentives. However, the reward plan may vary depending on the card provider.
EnKash is a spend management platform that assists businesses in paying for expenses like travel, subscriptions, marketing, GST, procurement, and more through their customer corporate cards. With rewards (conditional) on transactions and effective features to streamline the company’s finances, credit cards are the best pick for SMEs and startups. With EnKash’s company credit card, you can track and record expenses related to your business in real-time, thus making the reconciliation process simpler and quicker. Monitor and control the activities directly from the dashboard via your mobile phone or desktop. Connect with EnKash today to avail yourself of the best company credit card.