The average credit card limit in the US is just over 22 thousand dollars. The limit for a corporate account credit card is about 10 thousand more. Spending can get out of control if you’re not watching these accounts.
Managing your business spending takes planning and organization. Learn more about how spend management can benefit your business.
What Is Spend Management?
Spend management is a plan that organizes your business spending. It goes beyond the reimbursement of employee expenses such as travel costs. This plan looks at spending categories and allows you to create a policy for each one.
There are four main steps to follow when developing a spend management plan.
Create an Employee Spending Policy
A good policy defines what an employee can spend money on and sets spending limits. Use credit cards and budgets to set limits by categories and departments.
Your policy will outline the steps your staff will follow to document spending. This includes how to submit receipts for filing. Use corporate cards for your business spending and have each person submit their paperwork.
Credit card spending is easy to watch, and the right card platform lets you add your business general ledger accounts and coding. Your employees can assign these codes to transactions, making it simple to upload the data to your system.
Track Company Spending
Regular audits of spending will include budget to actual comparisons. That allows you to be sure employee spending is on track. You can watch how well they follow your spending policy and take appropriate action when needed.
Set up ways to tag or identify spending by project area, and you’ll be able to track spending. When you ask your staff to attach notes to their transactions, it will improve communications between departments.
Spend Management Software
Use a spend management platform to help you simplify your corporate credit card spending. The right tool lets you manage credit cards by restricting purchases to specific vendors or limiting activity to weekdays only.
You want to be able to set up flexible limits or turn a card on or off quickly. If you use Bento for corporate cards, you’ll have access to all these tools. They also reduce the time spent reconciling and entering data.
Automate Transaction Recording
When you streamline your recording process, you’ll have the information you need to make better business decisions. Many spend management platforms allow you to export data and import it into your accounting software.
You won’t have to wait for monthly corporate account reports. This automation reduces data entry, and you can update it frequently.
Your team will have the benefit of up-to-date information. Better data allows them to make changes that can reduce costs.
Manage Your Corporate Account Credit Card
There’s a lot to consider when you’re managing your corporate account credit card spending. A comprehensive spend management tool can simplify your business spending.
Did this article help you understand the benefits of managing your expenditures? If so, be sure to use the simple search feature to find more information to help you improve your business.
