Corporate credit cards are almost a necessity in the business world. They can be used for a variety of purposes including paying suppliers and vendors, travel expenses for corporate, travel, maintaining office supplies and stationary, and for making the million little purchases that a business required on a day by day basis. There are many advantages to using corporate credit cards, not the least being that nobody has to carry wads of cash around to make minor purchases. Corporate credit cards also provide a great way to track expenses by item and by individual. Some corporate credit cards like American Express will even provide detailed reports on business travel so that the company can monitor its travel patterns and make adjustments that can result in large savings. Corporate credit cards are also another record of expenditure that can be traced and followed up on if there is a problem or discrepancy noted during a review or audit. Accountants love this back up system of receipts and the ability to identify every single purpose makes the jobs of the auditors much easier as well. If there is a downside to corporate credit cards it is on the aspect of possible abuse and even fraud by employees using the corporate credit cards. Some companies have been misled by their employees who have used the corporate credit cards for non business related expenditures. These errors have not been identified because employees delayed filing expense reports and in some cases the employees were long gone before their actions had been discovered. To prevent these situations from arising there needs to be a firm company policy about the use of corporate credit cards and discipline for those who abuse this privilege. Every employee who receives a corporate credit card should be given an orientation on its proper use and know the consequences if they do not follow these procedures. Most companies also limit the number of corporate credit cards in distribution and also require approval before using the corporate credit cards over a certain amount that is tied to the duties and responsibilities of the employees position with the business. Corporate credit cards can be a very useful tool for any corporation, business, or even small business. They can allow a company to operate without using cash and without having to use their own money to do business. Corporate credit cards are available from all major banks, credit unions, and from the credit card companies themselves. There are a variety of options and rate plans to choose from and each business should review this carefully before selecting corporate credit cards for their operation. Just remember to build in checks and controls to limit and avoid employee abuse and corporate credit cards will be an important asset for any business. |
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