May 10, 2013 Sean Albert
More than 60 percent of all business owners expect to increase spending in the coming year, a survey from PEX Card indicated. More specifically, 68 percent of businesses with between 25 and 49 employees plan on expenses jumping in 2013.
Rising healthcare premiums, increased fuel prices and general inflation were listed by business owners as some of the reasons for an expected jump in spending.
With costs associated with running a small business rising, controlling and monitoring expenses has suddenly become more important. Most main street entrepreneurs will be exploring which tools and resources can help them control their spending most effectively. One option for main street may be the use of prepaid cards in the office.
According to Smallbiztechnology.com, implementing prepaid cards into company spending strategies can make it easier for owners and executives to keep track of employee expenses.
Easy access for workers
The source says that ACH cards and similar products offer businesses a great way to extend company funding to workers on the go. Instead of dealing with burdensome expense reports, cards loaded with a predetermined amount can help owners provide employees with company money to pay for travel or lunch with a client.
Monitoring is a breeze
Another feature of prepaid cards that business leaders can take advantage of is that activity can easily be monitored. With these alternative credit devices, executives can see exactly what their employees are spending company money on. This can cut down on unnecessary loss of funding on behalf of staffers that may be liberal with what they list as business-related costs on expense reports. If there are particular employees that have a penchant for living lavishly, owners can limit their access to funds on prepaid cards as needed.
Instead of processing and approving dense expense reports, business leaders can easily access organized data for every card they issue, just like they can with traditional credit cards. Workers don't have to waste time completing some accounting tasks and instead can spend their time on other operational aspects of their enterprises. That also means that workers are freed from dealing with complex expense reports as well which should enable them to focus solely on work-related tasks.
Besides prepaid cards being useful for monitoring employee spending, executives can use them as well. They offer business owners a great way to keep corporate expenses organized and separate from personal spending.