What Are The Benefits Of A Procurement Card?
Procurement cards are especially effective at reducing the administrative costs incurred by large numbers of low priced purchases. Using traditional accounting methods, it’s possible for the administrative costs of a low priced purchase to exceed the price of the acquisition itself. Procurement cards eliminate the need for purchase orders and invoices allowing direct purchases to be made. Because of this, procurement cards reduce purchase processing times, simplify accounting procedures and give employees purchasing autonomy.
What Are The Drawbacks Of A Procurement Card?
Without proper user education and oversight, it’s possible for a procurement card to be misused. Since procurement cards use company funds, a certain level of trust must be placed in the card user. To ensure procurement cards are used properly, administrators need to devise a suitable approval process, educate card users in appropriate use and set spending limits and purchase category controls.
The Emburse Procurement Card
Emburse issues employee procurement cards that can be linked to a bank account, similar to a debit card, or to a revolving line of credit, similar to a credit card. To find out more about how procurement cards can work within your expense management system and streamline your company’s accounting procedures, contact Emburse for a free demonstration today.