By using credit cards as part of your company’s expense management system you’ll experience an improvement in the ability to manage your business budgets.  There are several different facets of credit cards that can be used when it comes to financial planning and budgetary controls. In this article we’ll go over six ways that credit cards with spending limits can improve the budgeting processes within your company..

1. Credit Cards With Spending Limits For Team Budgets

If your business allocates different budgets to different departments or teams, issuing credit cards with spending limits can ensure that each team remains within budget without the need for the constant monitoring of expenditures.  By allowing administrators to set spending limits on the cards issued to each department or team, any charges that threaten to exceed the cap will be denied. This creates an automatic budgetary ceiling which cannot be broken without express permission granted by the card controllers.  Keep your team and department spending under control by issuing credit cards with enforced spending limits.

2. Credit Cards With Spending Limits For Project Budgets

Although it’s quite similar to a team budget, a project budget may affect a number of different departments or teams at the same time.  By issuing credit cards with spending limits to various teams or departments that are involved in a specific project, it’s possible to ensure the overall spending on the project doesn’t exceed the allocated budget.  No matter the number of different parties involved in the project, the budget cap remains in place and prevents overspending. This automation affords the various project members, teams and departments autonomous spending abilities until the expenditure limits are reached.

3. Credit Cards With Spending Limits For Fraud Protection

By using credit cards with spending limits, a company insures itself against large instances of fraud.  Although fraudulent activities may still occur, the creation of a spending cap will limit the amounts that can be charged and prevents large sums of money from being spent before the deceptive activity is discovered.  Similarly, if a card is lost or stolen, the spending limit will curb any damages caused by keeping the amounts spent to manageable amounts.

4. Credit Cards With Spending Limits On Purchase Categories

Business credit cards allow administrators to create spending limits by restricting the types of purchases that can be made.  For example, for employees who travel, their purchases could be limited to hotels, gasoline and other related expenses. For those in charge of supplies, the appropriate spending controls can be implemented by specifying the merchants used or the types of products that can be purchased.  Similarly, certain cards may be restricted from being used online or over the phone. It's possible for businesses to manage their budgets more effectively by controlling the types of purchases which can be made on specific cards.

5. Credit Cards With Time Restrictions

By utilizing credit cards with time restrictions it’s possible to regulate expenditures according to a related fiscal period and thereby maintain control over when money is being spent.  By limiting credit card use to a certain length of time or a specific number of purchases it’s possible to ensure that budgets limits aren’t exceeded before the end of the fiscal period. Credit cards with time restrictions are also useful for issuing to contractors or short term employees.

6. Credit Card Financial Reporting

By using credit cards to cover business expenses, a business can be assured that all its transactions are reported correctly.  Even if receipts go missing there is still a record of the transaction which can be used for referral purposes to confirm the purchase.  Poorly managed financial records can play havoc with budgets by allowing mistakes to be made and oversights to occur. Credit cards have a built in statement system that allows instantaneous monitoring of expenditures and is reinforced by a monthly statement.  With the additional backup of credit card statements in tandem with, or in lieu of receipts, administrators are better equipped to ensure budgets are maintained.

Emburse Credit Cards

As Emburse now offers credit cards as part of its expense management system, companies who sign on will have access to all the benefits that credit cards are able to confer; including the creation of various types of spending limits.  By implementing the assorted spending limit controls available with credit cards, companies are better able to monitor expenditures and manage budgets.

Full Credit Facilities

The Emburse expense card management platform has entered into a partnership with Comdata, a leading commercial credit card issuer, to provide customers with access to full credit facilities and up to 30 day invoicing options. Emburse customers still have access to virtual and physical prepaid cards as well as ACH transfers.  However, with access to full credit offerings, customers can avoid any issues with ACH tansfers or prepaid card payments being denied for non sufficient funds.

About Comdata

Comdata has been in business for over 45 years and is a leader in business to business payment technologies.  Comdata is the second largest commercial issuer of Mastercard in North America. It is also the largest fuel card issuer on the continent.  The company uses its credit card network, transaction processing facilities and technological research and development efforts to assist companies in creating efficient electronic, business to business payment systems.

About Emburse

Emburse has been offering virtual and physical prepaid cards for business to business payments for the last two years.  The partnership with Comdata has allowed them to expand their expense management system to include virtual and physical credit cards with a generous cash back rewards program.  If you’d like to find out how such a system can improve your budget management, get in touch with Emburse for a free demo today.

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