In a busy day-to-day schedule, having a proper expense management process is often overlooked by companies. But if done wrong, it could bring serious implications for employee morale. So here are five ways businesses currently spend money, and how you can enhance the employee experience.
- Staff reimbursement
- Petty cash
- Corporate credit cards
- Gift cards
- Expense management platforms
Staff reimbursement
Staff reimbursements are widely used across Aussie businesses. However, in most instances, the process of being reimbursed as an employee can be quite time-consuming and not necessarily the most efficient way to make staff purchases.
Usually, when staff reimbursements are used, an employee will need to fill out a staff expense sheet, provide a receipt, pass this on to their finance team, and wait until their next pay to be reimbursed. Most individuals may not have the cash flow to use this option - especially in a home office or a remote-only role.
Petty cash
Usually kept in a safe, this method can be described as the least secure and most admin-heavy way for an employee to make a purchase.
Attached to this method are usually log books or spreadsheets in which an employee will have to fill out who made the purchase, how much it was for, how much change was taken and even where the purchase was made. Furthermore, receipts must still be collected and either attached to the transaction or presented to the finance team.
Corporate credit cards
Company credit cards are a common way for businesses to spend money. In most instances, these cards are issued to those in management positions. If your business is considering applying for a business credit card, we have written a blog on choosing the right corporate card provider that might be of interest.
Company credit cards are a great method in expense management. However, there is less spend control available, and tracking where and who is spending money can be a challenge.
Additionally, the tedious process remains after the credit card is used - collecting the receipts and providing that to the finance team for reconciliation. While there are platforms where receipt capture works alongside credit cards, this doesn't include the ability to allocate funds to specific spending.
Gift cards
To solve expense issues that are usually related to petty cash, businesses have often turned to gift cards or Aus Post cards. However, using gift cards will usually involve a staff member having to top them up, often manually, or they may have to buy new cards whenever they want to make a purchase.
Evidence of where purchases are made is still very vague, and the issue of receipts still stands. Although this does solve the problem of having cash on site, there can still be security issues and money lost due to unspent money on the cards that cannot be retrieved.
Expense management platforms
Expense management platforms are the latest method used by many businesses. With time-saving and convenience brought about by automation, here's why they work:
- Instant card issuing. They use preloaded VISA smart cards instead of lines of credit, allowing instant issues. No more waiting weeks for a card to arrive.
- Total spend control. You can set rules in these platforms that ensure your employees can only spend what you want, in a time frame you want. This means you have a lot more control than a generic credit card limit.
- Instant visibility on all transactions across all cards in one spot. The software allows you to view all transactions (including receipts) as they happen for all cards. No more logging into different online banking portals.
- One-click receipt capture. Never have to chase receipts again with employees being able to click a button at the point of purchase to attach the receipt, which then automatically flows into your accounting software along with the transaction information. This also ensures one-click receipt production during an audit.
Budgetly's prepaid corporate cards and expense management software provide Aussie businesses with a great alternative to credit cards, staff reimbursement, and other outdated methods of spending money.
To learn more about Budgetly and our expense management platform, download our eBook, Managing Expenses with Budgetly. Alternatively, schedule a demo with us today to find out how we help businesses make expense management easier.
