Travel, supplies, utilities, fuel, lunches…business expenses can add up quickly, and they can be difficult to control and track. If you are a small business who uses petty cash or checking accounts for expenses, you know that these tools can be inconvenient, unsecure and tough to monitor and track. Research also shows that nearly 20 percent of businesses that have adopted expense management software were motivated by a lack visibility into expense spending.1 This leaves companies at risk of fraud and cash flow challenges. Small businesses are especially at risk: having cash on hand is a key measure of small business vitality.2
Regardless of size, businesses should put controls in place to monitor spending, increase visibility and minimize risk. Here are three steps to cut down on employee overspending and fraud:
- Cut down on petty cash. Cash requires frequent bank and ATM visits. Plus, it’s difficult to track once it leaves the bank, and keeping cash on hand can be risky.
- Streamline expense reimbursements. Reimbursements are painful for employees and employers, difficult to track, and open up opportunities for fraud. Still, a 2017 survey of more than 600 companies showed that 46 percent of all businesses and 64 percent of small businesses rely on outdated, manual processes for expense management.3 For employees, spending their own money and relying on receipts for reimbursement is a top pain point. For employers, the time spent reconciling, reviewing and approving expense reports manually is a significant challenge.
- Use an automated, transaction tracking platform. By using an expense management program like the Netspend® Expense Management Prepaid Mastercard®, businesses can see and control every transaction employees spend through the Online Account Center or Mobile App.4 Employers can add and remove funds to employee cards in just a few clicks and set daily spending limits. Business owners can receive notifications via SMS or email, and spending data can be exported to accounting software. As an added bonus, prepaid tools can help reduce the need to use cash or to reimburse employees.
Taking control of your expense management may minimize risk and help protect your business. Using payments technology to streamline your processes makes money management more efficient and precise.
1Paystream Advisors, “2017 Travel and Expense Management Report” https://www.paystreamadvisors.com/wp-content/uploads/2017/12/2017_TEM_1.08.pdf, 2017
2 JPMorgan Chase & Co Institute, “Cash is King: Flows, Balances, and Buffer Days,” https://www.jpmorganchase.com/content/dam/jpmorganchase/en/legacy/corporate/institute/document/jpmc-institute-small-business-report.pdf, September 2016
3 Certify, “2017 Expense Management Trends: Annual T&E Outlook and Benchmarks,” https://www.certify.com/2017-02-09-2017-Expense-Management-Trends-Annual-TE-Outlook-and-Benchmarks, February 2017
4 No charge for this service but your wireless carrier may charge for messages or data.
This Card Account may be used for business-related purchases and expenses only and may not be used to pay wages, commissions, incentives, or other employment related costs. Card Account may not be used for personal, family, or household purchases.
The Netspend Expense Management Prepaid Mastercard® is issued by MetaBank®, Member FDIC, pursuant to license by Mastercard International Incorporated. Netspend, a TSYS® Company, is a registered agent of MetaBank. Certain products and services may be licensed under U.S. Patent Nos. 6,000,608 and 6,189,787. Use of the Card Account is subject to funds availability and ID verification. Transaction fees, terms, and conditions apply to use and reloading of the Card Account. See the Card Account Agreement for details.
Card may be used everywhere Debit Mastercard is accepted.