Corporate card: how it contributes to financial management
Posted: Tue Dec 24, 2024 10:46 am
The corporate card is a tool that makes it easier for companies to manage their expenses, providing greater operational efficiency and cost control. So much so that the use of this payment method has grown significantly in recent years.
In the world of industries, wholesalers and distributors, it is extremely common for field sales team members to travel to their customers to close contracts and make sales. A good practice for many of these companies is to bear the costs that occur during these transfers.
According to Abecs , an association that represents the electronic greece whatsapp database methods sector, spending on corporate cards in 2022 totaled R$240.2 billion for the year, considering debit and credit, representing an increase of 30% compared to 2021.
In this article, we will present all the features and advantages of adopting a corporate card for your company.
Summary
What is a corporate card?
Card advantages
Expense control and management
Reduction of bureaucratic processes
Security and expense control
Ease of business travel
When and how can the corporate card be used?
What products can be purchased?
What can't be bought?
What types of cards are there?
What criteria should I evaluate when choosing a credit card?
Why adopt an expense management system?
What is a corporate card?
A corporate card is a type of credit or debit card issued by a company to its employees. It is used to facilitate business-related expenses, such as travel, purchasing supplies, paying bills, among others.
Additionally, they allow employees to make purchases on behalf of the company without using their own money. This way, the expenses incurred are paid by the company, although employees may be responsible for proving the expenses and providing reports for accountability purposes.
Corporate cards typically have spending limits set by the company and can be issued in specific names, departments or projects, which helps track and control spending more efficiently.
Card advantages
The benefits of a corporate card can be diverse, both for the company and for employees, the main ones include:
Expense control and management
All transactions are recorded and can be easily tracked through reports by the finance department .
For example, imagine that an employee used a corporate card to purchase an item that was not related to work. This makes it easy for managers to detect the purchase and ensure that the employee is held accountable for the expense.
Reduction of bureaucratic processes
By using the card, employees do not need to use their own resources to cover work expenses and, consequently, do not need to go through the reimbursement process , which reduces internal bureaucracy.
Security and expense control
Cards can be set up with spending limits, usage restrictions and can be password protected, making them more secure and controllable compared to using cash.
Ease of business travel
For employees who travel frequently for work, the card can make it easier to manage expenses, allowing greater control over expenses related to hotels, food and transportation.
When and how can the corporate card be used?
What can and cannot be purchased with the card depends on the company's expense policies . These policies are usually designed to ensure that the card is only used for business-related expenses, such as purchasing office supplies or taking business trips.
Companies may require prior approval before using the card. They may also have an expense tracking system that allows the finance department to monitor spending in real time.
What products can be purchased?
Some purchases and policies are more common in the corporate world, see some recurring expenses made through this payment platform:
Operating expenses: Purchase of office supplies and materials, fuel for corporate transfers (such as visiting a client), printing, among others.;
Business travel: Payment for airfare, accommodation, car rental and meals during business trips;
Technology: Acquisition of equipment, software or services related to the technology required for the company's activities.
In the world of industries, wholesalers and distributors, it is extremely common for field sales team members to travel to their customers to close contracts and make sales. A good practice for many of these companies is to bear the costs that occur during these transfers.
According to Abecs , an association that represents the electronic greece whatsapp database methods sector, spending on corporate cards in 2022 totaled R$240.2 billion for the year, considering debit and credit, representing an increase of 30% compared to 2021.
In this article, we will present all the features and advantages of adopting a corporate card for your company.
Summary
What is a corporate card?
Card advantages
Expense control and management
Reduction of bureaucratic processes
Security and expense control
Ease of business travel
When and how can the corporate card be used?
What products can be purchased?
What can't be bought?
What types of cards are there?
What criteria should I evaluate when choosing a credit card?
Why adopt an expense management system?
What is a corporate card?
A corporate card is a type of credit or debit card issued by a company to its employees. It is used to facilitate business-related expenses, such as travel, purchasing supplies, paying bills, among others.
Additionally, they allow employees to make purchases on behalf of the company without using their own money. This way, the expenses incurred are paid by the company, although employees may be responsible for proving the expenses and providing reports for accountability purposes.
Corporate cards typically have spending limits set by the company and can be issued in specific names, departments or projects, which helps track and control spending more efficiently.
Card advantages
The benefits of a corporate card can be diverse, both for the company and for employees, the main ones include:
Expense control and management
All transactions are recorded and can be easily tracked through reports by the finance department .
For example, imagine that an employee used a corporate card to purchase an item that was not related to work. This makes it easy for managers to detect the purchase and ensure that the employee is held accountable for the expense.
Reduction of bureaucratic processes
By using the card, employees do not need to use their own resources to cover work expenses and, consequently, do not need to go through the reimbursement process , which reduces internal bureaucracy.
Security and expense control
Cards can be set up with spending limits, usage restrictions and can be password protected, making them more secure and controllable compared to using cash.
Ease of business travel
For employees who travel frequently for work, the card can make it easier to manage expenses, allowing greater control over expenses related to hotels, food and transportation.
When and how can the corporate card be used?
What can and cannot be purchased with the card depends on the company's expense policies . These policies are usually designed to ensure that the card is only used for business-related expenses, such as purchasing office supplies or taking business trips.
Companies may require prior approval before using the card. They may also have an expense tracking system that allows the finance department to monitor spending in real time.
What products can be purchased?
Some purchases and policies are more common in the corporate world, see some recurring expenses made through this payment platform:
Operating expenses: Purchase of office supplies and materials, fuel for corporate transfers (such as visiting a client), printing, among others.;
Business travel: Payment for airfare, accommodation, car rental and meals during business trips;
Technology: Acquisition of equipment, software or services related to the technology required for the company's activities.