Efficient Receipt Management For UAE Businesses
Collecting, storing, and otherwise managing receipts is essential to a well-oiled expense reporting machine.
Each receipt serves as confirmation of payment processing between yourself and the customer or vendor. You also need expense and sales receipts to file taxes and maintain your peace of mind.
Unfortunately, while saying receipt management is easy, the whole process itself is daunting. Tracking hundreds, thousands, even millions of employee and customer receipts leaves loopholes for fraud and misreporting.
Physical expense receipts are especially susceptible to being lost, damaged, or fading with time.
Fortunately, there’s a better way to do it: digital receipt management with Pluto.
- Automate more of the expense management process
- Reduce the risk of fraud and inaccuracies
- Create more efficient workflows and financial departments
- And overall streamline modern business operations
While you probably can’t eliminate 100% of paper receipts from your workday, you can still improve your process with an increasingly-digital footprint!
What is Receipt Management and Why Do You Need It?
Receipt management is the process of collecting, tracking, and storing business receipts.
Traditionally, receipt management is handled by internal finance teams. These employees collect various receipts, track costs in your accounting software, and store them for later. If necessary, the accounting team will also manually sort each expense.
A well-run protocol helps businesses:
- Simplify employee reimbursement programs
- Track and report tax deductions
- Provide proper proof during a tax audit
- Streamline expense reports and budgets
- Combat internal fraud and inauthentic chargebacks
- Avoid eating repair or replacement costs for items under warranty
- Calculate and improve long-term profitability
But there isn’t just one kind of receipt management system. Today, businesses have to wrestle with printed receipts, e-receipts, and even (gah!) handwritten receipts.
The mix is frustrating for businesses that have to follow several procedures just to reconcile the books.
Difficulties of Manual Receipt Management
Today, there are three basic ways to handle receipts directly:
- Manual receipt management involves handling, tracking, and storing paper receipts
- Digitization receipt management scans physical receipts to digitize the tracking process
- Digital-only receipt management is used for online or digitally generated receipts
While many businesses are moving toward digitization and digital-only receipts, some businesses are stuck in the dark ages. (The kind that involves typing physical receipt information into a digital spreadsheet.)
And as we’ll see below, manual entry strategies come with some…problems.
Easily Lost or Damaged Receipts
Perhaps the most obvious problem with physically tracking expense receipts is that there’s so much that can go wrong. Lost, damaged, or faded receipts make the business expense tracking process that much harder.
Even if the employee who spent the money doesn’t drop their receipt, it’s possible for paperwork to get lost on a desk somewhere. And if you need to find a receipt two years later? Better hope it was filed properly and hasn’t faded completely.
Consumes Human Resources
Manual receipt management is an extremely hours-intensive process.
Your financial team has to collect invoices, type their data into your accounting software, and double-check their work. Then, they have to reconcile business expenses against company credit card statements and track down potential instances of fraud or misreporting.
Not only does this require a lot of time, but it also impacts employee productivity. Every hour an accountant spends tracking receipts is an hour of productivity lost elsewhere.
Leaves Room for Human Error
Aside from the time and human resource cost, manual receipt management presents the potential for human error. And unlike on the product line or in customer service, every reporting mistake risks an unfavorable tax audit.
Even the simplest receipt management and tracking process involves several steps from collection to reconciliation. Every stage is an opportunity for an employee to get distracted, mistype a name or number, or duplicate entries. In bigger cases, they might even duplicate a payment, costing you more money.
And even if you catch the mistakes before they’re submitted, that’s more human hours wasted double-checking and correcting completed work.
Increases Fraud and Misreporting Risk
The risk of fraud is higher in manual receipt management programs, and instances of fraud may be harder to detect. Types of fraud that commonly crop up in expense reporting include:
- Inflated claim amounts
- Claiming personal costs on the business’ dime
- Submitting expense reports twice
- Falsifying “proof” to claim for money that wasn’t spent
Unfortunately, manual receipt management makes these kinds of fraud more likely and difficult to catch. For example, if the employee who authenticates receipts is committing or permitting the fraud, it’s harder to detect until after you’ve lost money.
Over time, even small acts of fraud can have massive financial consequences.
Contributes to Employee Dissatisfaction
For many companies, employee reimbursement programs contribute both to the need for manual receipt management – and to employee dissatisfaction.
Think about it. In a modern, tech-savvy business world, why should employees have to pay out of pocket, ever?
Virtual cards and online-based businesses have all but eliminated the need for an employee to front your expenses.
But if you’re still stuck doing manual receipt management, chances are, your employees are still submitting reimbursement tickets. (And grumbling about the time it takes to get paid back.)
And that’s not even touching on the frustration, tedium, and headaches manual receipt management programs cause your high-paid finance teams.
Jacks Up Business Costs
Together, all these factors paint a picture of increased business costs.
The time and human resource cost to track, reconcile, and store receipts.
The human and financial cost of detecting and counteracting fraud.
Even the maintenance costs for your printer and filing cabinets.
Every dollar spent on manual receipt management is a dollar sucked from office parties, growth, or your bottom line.
Benefits of Digital Receipt Management
It’s easy to see the costs that manual receipt management impose. Fortunately, there’s a simple solution: digital receipt management.
In short, digital receipt management involves using digital copies of receipts in your expense reporting strategy. Digital smart receipts are easy – simply integrate them into your accounting software and let automation take you away.
But even physical sales receipts can be digitized, Pluto allows you to digitize your receipt very simply - through your phone.
Incorporating such technology means that even paper receipts fold neatly into your overarching digital strategy.
And as you’ll see, the process comes with tons of benefits.
Increases Integration Potential
A massive benefit of digital tracking is the sheer integration potential. Most receipt management tools, from receipt scanning devices to receipt tracking software, easily mesh with your existing expense reports system.
From there, you can automate mindless tasks and set up occasional human checks to ensure the system works as intended.
Fewer Costly Errors
Another way that a digital receipt management program saves costs is by reducing employee errors. Digital receipts should meld seamlessly into your tracking system – no surprises there.
But even processing physical receipts is cheaper and easier.
With their mobile phones, employees can scan receipts and upload them instantly. From there, Pluto categorizes the information and adds it to the overall report.
While employees may spend a second filling in any blanks, increased automation greatly reduces the risk of input errors.
Reduces Risk of Fraud
Less human interference means your financial system is more resilient to fraudulent activities. Pluto improves speed and accuracy while digitizing the receipts.
That leaves fewer opportunities for fraudulent claims.
Uploading physical receipts means less physical space is needed for storage. That can save you on storage costs and reduce desktop and file cabinet clutter.
And because everything’s digitally maintained, you’ll still meet or exceed your tax authority’s required financial record storage period.
Not to mention, just finding your records will be easier than ever!
No person or business enjoys tax season. But digital management makes the process at least a little easier.
Because all of your information is stored online, it’s easier to access and export receipts as needed.
When tax time or the dreaded audit comes around, your data will be well-organized and easily accessible.
More Efficient Expense Reporting
Traditional receipt management is a costly, time-intensive, error-prone manual process that used to be necessary. With modern tools, businesses can streamline the entire financial structure of their organization.
No more lost receipts or worrying about fraud.
Less time spent inputting and double-checking data, and more time helping your business grow.
All these positive benefits will improve efficiency – and even bring smiles to your accountants’ faces.
Like using a virtual corporate card, digital receipt management speeds up the reimbursement process.
Since everything is tracked and verified electronically, it’s easy to set up an automatic or streamlined reimbursement protocol.
Putting Your Eco-Friendly Foot Forward
Lastly, any step your business can take toward going paperless is good news for the environment.
Cutting down fewer trees and reducing printer ink usage are laudable goals that can decrease your environmental footprint.
Not only will you enjoy cost savings, but you’ll feel better about doing business in an increasingly eco-conscious world.
8 Tips for Efficient Receipt Management
Digitizing your receipt management strategy is just the first step toward expense report success. To ensure you’re operating at maximum efficiency, consider the following tips.
1. Use Pluto App
The first step is to get Pluto and start managing your spending digitally.
While you’re moving toward digital efficiency, your vendors aren’t required to follow. Keeping the proper tech on hand ensures you can digitize any paper receipts that come your way.
Pluto allows you to take a picture of the receipt, upload it to your expense and just like that the reconciliation process is done!
2. Save Your Receipts
While you can set up secure digital folders to store all your digital originals and copies - Pluto does that for you!
Just take a picture of the receipt, upload it to the app and that is it.
3. Ensure High-Quality Digital Format Uploads
There’s no point in uploading and saving documents if you can’t read them.
Before tossing your physical copies, make sure you can clearly read the essential information on each receipt. (Such as the company name, date, purchased item(s), and amount.)
4. Categorize Submitted Expenses
Take some time to categorize your expenses (most businesses do this in chronological order). Pluto helps you with that, but just make sure to check the right category so the reporting stays in top notch condition.
5. Set Up a Simple Expense Report Strategy
Expense reporting is the backbone of any business’ financials. For prompt, complete reporting and tracking, ensure that you design a straightforward strategy.
Same-day submissions, fewer Excel sheets, and faster reimbursement protocols will improve efficiency and attitudes. Better yet, invest in a quality expense and receipt management software.
Or even better - start with Pluto, we have a free package. It will allow you to completely digitize and control your spending, while keeping your reporting in the best possible shape.
6. Establish Accountability
A top-notch expense reporting strategy only works if people use it.
To ensure your protocols are followed, emphasize and encourage accountability. Keep all managers and supervisors up-to-date with company spending and card policies and remind them to disseminate that information appropriately. Follow up with employee expenditures as needed.
7. Run Regular Internal Audits
Regular expense report audits help businesses track receipts fraud, clear up discrepancies, and streamline inefficiencies.
Take time each month or quarter to check for fictitious or overblown expenses or troubles with your expense reporting strategy.
Pluto allows you to run real-time reports at any given moment for any period of time.
8. Switch to Virtual Corporate Cards
Virtual corporate cards make managing receipt tracking even easier. Not only can you digitize the entire process end-to-end, but corporate p cards give you greater control over your expenditures and tracking.
Sure, you can’t prevent vendors from handing you physical receipts. But you can greatly minimize instances of employees walking in with a big stack of thermal paper to scan in.
Pluto offers unlimited virtual cards which will book all your expenses right into the dashboard!
- Proper receipt management is key to running a financially successful business.
- While manual receipt management reconciles physical copies, it’s increasingly unnecessary in an increasingly digital world.
- Digital receipt management simplifies the collection, reconciliation, and storage process.
- Digital tracking also reduces fraud potential, time and financial waste, and increases employee satisfaction.
- Digitizing your expense reports pairs nicely with digitizing your own payments with virtual corporate cards.
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At Pluto Card, our mission is to assist businesses of all scales make well-informed choices. To uphold our standards, we follow editorial guidelines to guarantee that our content consistently aligns with our high-quality benchmarks.
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What is an Expense Report? How to Create One?
One crucial aspect of business finance management is knowing how the money of your organization is being spent. You can’t paint a complete picture of your organization’s financial health without understanding how the money is flowing first. This clarity is precisely what effective expense reports provide. When properly maintained, expense reports give you a clear perspective over your organization's finances.
In this comprehensive guide, we delve into:
- The Definition of Expense Reports: What are they and why are they crucial?
- The Importance of Accurate Expense Reporting: How does it affect your organization's financial health?
- Creating Effective Expense Reports: We'll explore two practical methods to craft accurate and insightful expense reports, empowering you to make informed financial decisions.
What is an expense report?
An expense report is a crucial tool in business finance management. It is a categorized and itemized list of expenses made on behalf of the organization. These reports assist employers or finance teams in determining what money was spent, what was purchased, and how much of the expenditure is eligible for reimbursement.
The purpose of an expense report is to track the expenditures of a business and expense forms should include all purchases necessary to operate a business, such as food, gas, or parking.
It is most commonly used by employees when requesting reimbursement for expenditures.
When expenditure amounts exceed a certain threshold, receipts are usually attached to the form.
Employees are paid the requested amounts after the employer examines their submissions for accuracy and validity.
In this case, the employer will be able to recognize accounting profit and taxable profit based on the reimbursements.
Business expense reports are usually generated on a monthly, quarterly, or annual basis to track business spending:
- It is important for a company to maintain monthly and quarterly expense reports to track all of its purchases during that period. The reports are used to determine whether spending within the organization's budget is within its limits and to identify areas for cost reductions.
- Yearly expense reports are in turn used for tax purposes. A company's tax returns are prepared using its annual expense reports.
It is also possible to use expense reports to detail expenditures made against an initial employee advance.
Employers still record employee expenses as business expenses, but they do not reimburse employees; instead, they deduct the expenditures from employee advances.
Why use an expense report?
Expense reports are essential for small businesses, enabling a clear tracking of business expenses often paid out-of-pocket by employees. These reports detail all reimbursable expenses and require attaching receipts for accurate verification. Once reviewed for accuracy, employees are reimbursed accordingly. Additionally, small business owners and accountants use these reports to analyze total expenses over specific periods, employing accounting tools to assess whether costs align with budget expectations
The following are some benefits of generating a expense report:
1. Facilitates efficient expense tracking and cost control
Analyzing expense report data is the ideal starting point for cost control. This allows you to track your firm's spending over time by giving you a clearer picture of what your money is being spent on.
Additionally, you can analyze how much your employees are spending on different expense categories, determine which categories are driving up costs, and implement strategies to reduce or eliminate them. In addition to identifying loopholes in expense policies, these reports can help you decide which vendors to prioritize and which ones to let go by identifying loopholes in expense policies.
Tracking expenses over time allows you to identify whether a particular expense category (such as transportation or hotels) is increasing costs excessively. As a result, you can strategize on how to reduce or eliminate these costs.
2. Helps with budgeting
A business's budget is essential to its smooth operation. A detailed and accurate expense report can help your organization develop a strong and informed financial plan. As a result, various departments and projects can be allocated more appropriate budgets. You can maintain your business's financial security long-term by consistently tracking expenses in order to ensure that different departments and projects adhere to their budgets.
3. Makes for accurate reimbursements
In the event that an employee paid for business expenses out of pocket, they would expect a fair and accurate reimbursement.
Also, you want to make sure that the request is fair so that you don't pay more than you are owed.
It allows organizations to determine if a claim is legitimate faster by providing employees with a standardized process to learn what can and cannot be expensed.
In addition to providing solid evidence of when, where, and how expenses were incurred, itemized expense reports with receipts do the same for proving compliance with your organization's expense policy.
4. Simplifies tax deductions
Tax deductions are available for many business expenses incurred by employees at work. In order to claim expenses as deductions, you must properly record them and provide proof that they were actually incurred.
Business owners sometimes use their bank account or corporate card statements to keep track of their deductible expenses. It's important to keep in mind that these statements may not include all expenses.
In contrast, expense reports simplify the process of keeping track and deducting deductible expenses during tax season. The finance team simply needs to add up all the expenses that can be deducted and enter them into the appropriate tax forms.
What should be in the expense report?
By creating an expense report, you (or your accountant) can easily add up all expenses so that they can be entered into your tax return.
Some crucial elements to include in an expense report include:
- The name, department, designation, and contact information of the employee who submitted the report.
- The date and amount of each expense (corresponding to the date and amount on the receipt)
- What type of expense is being incurred (meals, mileage, internet, etc.)?
- Vendor or merchant who sold the item
- If applicable, the client or project for which it was purchased
- From your accounting chart, determine the account where the expense should be charged
- A description of each expense in more detail
- Expense subtotals and total costs, including taxes, for each type of expense
- (If applicable) a deduction for prior advances made to the employee
How to create expense reports
Companies most often generate and track expense reports using spreadsheets, templates, or expense reporting software.
You can generate expense reports in two different ways: manually through templates, or through Pluto.
Manual expense reporting with custom templates
To make the task of preparing expense reports easier for employees, some organizations provide customizable, ready-made templates to download and use. To report expenses in this way, follow these steps:
- The employee outlines their name, contact information, designation, the dates covered, and the purpose of the report in the appropriate fields.
- Following that, they determine how many rows and columns the expense report should contain. For example, some firms have mandatory columns and categories that correspond to the expense categories and columns in tax returns.
- In the report, expenses should be listed chronologically with brief descriptions, with the most recent expense appearing at the end.
- In order to calculate the grand total, the employee must first calculate the subtotals for each expense category followed by the total for all expenses. Subtotals assist the finance department in analyzing expenses.
- Finally, all expenses mentioned above must be accompanied by receipts. The receipts can either be scanned or photocopied depending on whether the report is being submitted digitally.
- Reports are submitted to the line manager or department manager for validation and fraud detection.
- As soon as they approve the report, it is forwarded to the finance department for reimbursement.
Automated expense reporting
The use of expense report templates is a quick way to keep track of expenses for small businesses.
The problem arises when your business grows, at which point the process of filling out a report, even if using a template, can become a time-consuming task.
When multiple departments process several expense reports a day, it is important to switch to an automated expense reporting solution like Pluto, so that these reports can be tracked and managed more efficiently.
- Pluto enables employees to create expense reports on the fly. Their receipts need to be captured digitally or filled out in the mandatory fields within the application.
- By grouping all the expense claims together, a report can be created and submitted effortlessly.
- Pluto also provides virtual and physical cards, so the expense data are booked straight into the platform for later use.
- Line managers and department managers review reports to identify policy violations, fraud, duplicate expenses, or warnings about them.
How to simplify the expense reporting process
While expense reports are important when it comes to gaining an overall view of the way money is moving, creating them can be a hassle when your organization incurs too many expenses to keep track of manually.
However, there are a few ways that you can simplify your expense reporting. These include:
Switching to expense reporting software
The first step in expense management is to file expense reports. You must also maintain policy compliance, reimburse expenses on time, and conduct successful expense audits to stay on top of your business expenses.
This is where Pluto can help. By providing multiple ways to record expenses on the go, we eliminate the need for manual data entry and paperwork. You can benefit from an expense management solution by:
- Generating and submitting reports automatically;
- The ability to support multiple expense policies and spend limits;
- Eliminates policy violations and fraudulent expenditures
- Analytical reports and intuitive dashboards increase spend visibility
With all of these features, you can save time and money while keeping your employees productive.
Make expenses easy to report and track
Provide your employees with Pluto real-time reporting system where they can track expenses, submit receipts, and report business expenses.
Business expense reports can be updated in real-time using online or smartphone apps, and receipt images can be added for total transparency, if you use digital technology.
Time-stamping and expense classification make it easy to catch fraud, which is beneficial to both you and your employees.
Embrace mobile devices
By scanning receipts and automatically extracting and reporting the key data, Pluto saves your employees' time and improves their expense reporting accuracy.
It makes perfect sense for you to use an app that allows your employees to track expenses easily from their phones since most (if not all) of your employees spend a lot of time on their smartphones.
Set up a routine audit
Ensure that you also incorporate a routine audit process into your business expense report policies. Your expense report should be audited quarterly, biannually, or annually, depending on the number of expenditures your employees incur.
You can catch fraud cases through audits, but you can also understand where the biggest expenditures are and reduce them.
Routine audits can also help you improve management and tracking of your business expenses by letting you know how to refine your reporting process.
Automated expense reporting with Pluto
Pluto allows you to issue virtual cards and physical cards and that immediately solves two things:
- No need for petty cash or out of pocket expenses;
- Real-time reporting of all the incurred expenses;
The spend management system allows you to issues cards for a particular employee, vendor, or even expense type.
It also allows you to set the limits on the go, and see all the expenses in the real-time report. All that, while your employees can easily categorize the expenses and upload the physical receipts just by taking a photo on their mobile device.
Reporting expenses manually is very time consuming, but having them all digitally stored and automatically reported solves the problem.
Expense reports are a crucial aspect of the financial bookkeeping of any business organization. Not only are they important for knowing how much money is being spent by the company, whether as a whole or for a specific project, but also for the purpose of reimbursing employees for business-related expenses.
Plus, they also help you with budgeting, tax reporting, and cost control measures.
You can easily create an expense report using a premade or personalized template, but you’ll have a much easier time in the long run if you start using Pluto.
We got funded!
We're thrilled to announce that Pluto Card closed US$6M in Seed funding in February, led by Global Founders Capital.
With GFC being the lead investors, we've had participation from several of the world's leading investment firms and entrepreneurs. Soma Capital, Graph Ventures, Adapt Ventures, Ramp, Thejo Kote (Founder of Airbase), Shaan Puri, and William Hockey (Co-founder of Plaid) were some of the few who participated.
With our Seed round, we aim to get closer to achieving our mission; to streamline company expenses for MENA businesses.
Company spending in the MENA region is problematic, time-consuming, and frustrating. Managing company spending in MENA today is difficult, time-consuming, and frustrating, as today, companies only get a single debit or credit card.
Today, employees all share one company credit card, which usually leads to an OTP being sent to the CFO, financial leader, or founder of the company. Most bank OTPs last from 2 to 10 minutes before they’re expired. So, if an employee doesn’t get the OTP in time, they won’t be able to complete the transaction.
When a company credit card is issued, you cannot control spending. This means there is no way to set limits on the card to avoid being overcharged by recurring subscriptions or employees going over budget.
You cannot get real-time visibility or instant reports on business expenses with company credit cards. This makes making informed decisions about allocating resources in real-time more challenging.
Banks have no ideal solution for petty cash management. Companies typically maintain a cash vault at their offices, distribute loose cash to employees, and spend countless hours collecting and matching invoices.
Introducing Pluto Card: a corporate card & spend management platform that allows MENA companies to simplify and control their business expenses.
With Pluto's software, managers can issue their employees virtual cards with spend and control limits, cards that get canceled after a one-time purchase, and cards with a recurring daily, weekly, or monthly budget.
Employees can request expenses from their managers and submit reimbursement requests by dragging and dropping receipts onto the software. This happens in real-time, where managers can view employee requests as they happen, see what is being spent and where, and gain insight into instantaneous expense reports, helping them make informed decisions.
Want to see Pluto in action? Sign up and get a private demo here.
How to Create a Corporate Card Policy
Corporate cards are a great way to manage your spending, control expenses, eliminate petty cash, and, most importantly - give your employees the freedom to focus on their work without any blockages.
But for everything to work smoothly and for everyone to know how to use your corporate cards, you must establish some ground rules.
What is a Corporate Credit Card Policy?
A corporate credit card policy entails the protocols and terms and conditions of use associated with a company credit card issued in an employee's name. A company credit card policy protects businesses and companies from unauthorized payments and inappropriate use by outlining the repercussions and consequences of such actions.
Why Do You Need a Corporate Credit Card Policy?
In the same way, companies have a travel and expense policy; they have a corporate card policy. A company credit card policy is set in place to ensure all company cards are used for authorized and permitted business purchases.
In a corporate credit card policy, the guidelines, responsibilities of the cardholder, dos and don'ts, and repercussions of misuse are outlined. This ensures that all business finances are regulated.
While it is important to have a corporate credit card policy, Pluto takes the extra step to ensure all transactions and purchases are pre-approved, regulated, and permitted by:
- Creating Pluto cards that can only be used with specific vendors
- Setting daily, weekly, or monthly limits on cards
- Having an approval workflow to make sure the necessary departments are approving all transactions
Which Employees are Eligible for a Corporate Credit Card?
It is essential to note which job roles are eligible for a company credit card to protect your business against accusations of favoritism or discrimination.
A company can decide whether all employees, c-suites, or department heads are eligible for corporate credit cards.
Typically, companies only give executives, VP levels, C-suite, and salespeople access to company credit cards. However, there are situations where employees who are not eligible for a company credit card may have to pay for business-related expenses, such as plane tickets. In this case, the employee would ask their manager to pay for such an expense with the corporate credit card, or they will have to pay using their personal credit card or cash and file a reimbursement, which will be reimbursed with the next paycheck.
With Pluto's expense management platform, a company does not have to worry about corporate credit card eligibility or the hassle of employees filing reimbursements.
Using Pluto's platform, the business will have access to unlimited corporate cards, meaning any employee can be issued corporate cards with spend limits, approval workflows, and category-specific purchases. This results in no overspending and knowing all transactions are pre-approved and authorized due to the card only being accepted at allocated vendors.
Suppose an expense is made using cash or a personal credit card. In that case, the employee can snap a picture of their receipt and have it approved on the spot with Pluto's Whatsapp reimbursement feature, making it easier for finance teams and employees to sort through reimbursement receipts!
What Does a Corporate Credit Card Policy Contain?
When creating a corporate credit card policy, the credit cards intended to be used, the credit card provider's requirements, and the company's needs should be known.
In most cases, corporate credit card policies include the following points as part of their corporate credit card policy:
Employee Credit Card Agreement
When issuing a corporate credit card to employees, an employee credit card agreement must be signed to ensure that employees understand the card belongs to the company, regardless of the employee's name on the card.
The agreement will also state that the company credit cards can only be used for business-related expenses, where the company can investigate charges, if necessary.
Permitted Types of Expenses
The types of transactions that can be made should be stated clearly in the company credit card policy: work-related expenses only. These include, but are not limited to:
- Meetings with clients
- Work-related travel (e.g., flight ticket, accommodation)
- Educational material
- Software subscriptions
- Legal document expenses
- Business meals
While tending to the above is a good way to ensure company credit cards are being used for business-related expenses, Pluto offers cards that can only be used for specific vendors, such as fuel cards, to avoid mishaps or fraud.
With these policies and procedures in place, employees should note that if an instance occurs where the company credit card is used for non-authorized transactions, personal expenses, or cash withdrawals, they will be faced with disciplinary action.
The disciplinary action could result in the following:
- Cancellation of the company credit card
- Withdrawal of corporate credit cards privileges
- Recovery of funds from employee's salary
- Termination of employee contract
In some cases, an employee cardholder may incur an expense that is not usually permitted under the company credit card policy. To be able to do so, the company credit card policy should indicate how the cardholders can apply for an exception and get permission for such expenses.
While doing so, the company should also outline specific transactions that can never be made using the company credit card.
The spending limits on a company credit card usually depend on the employee's job and level of seniority. The company credit card policy should clarify the card's limits when receiving a new card.
In general, businesses can choose to have limits established based on transactions per-item or on a cumulative basis. However, not all employees will have the same spending limits.
With Pluto, you can set spending limits on virtual or physical cards before issuing them to ensure that employee spending stays within their budget.
Temporary and Permanent Limit Increase
To get a limit increase on a company credit card, the cardholder must fill out a form stating why they need a limit increase on their card and whether it is a temporary or permanent limit increase. The form will then have to be signed by the employee's manager and sent to the company credit card provider for processing.
Although it is possible, the process of getting a limit increase on a company credit card may take quite some time. Pluto allows managers, administrators, and finance teams to increase limits on virtual or physical company credit cards in seconds.
A company credit card policy must show how approval requests work when using a corporate credit card. Usually, approvers are responsible for reviewing all transactions regularly. By doing so, the following is warranted:
- The transaction or expense adheres to the company credit card policy
- A receipt is attached to the transaction made
- The description of the transaction follows the details mentioned above
Pluto takes the extra mile to automate approval workflows and receipt reconciliation. With Pluto, all approval requests will be made through the Pluto platform, and receipts will be collected through Whatsapp as soon as a transaction is made.
Including the cardholder's responsibilities in the company credit card policy is an essential part of the document. The purpose is to describe how employees can ensure they use their cards appropriately.
It's important to include that:
- Cards cannot be used for personal expenses
- Cards must only be used by the cardholder to help avoid fraud
- Cards and PINs must be stored in a safe place
- Cards must be reported as stolen and lost as soon as possible
- Document all expenses and send monthly reports
Employees are expected to comply with the corporate card policy. If the cardholder violates the terms stated, disciplinary action will be taken against the employee.
The disciplinary action can include:
- Face a written warning for violating the corporate credit card policy
- Pay for the expenses yourself if you've used the card for any inappropriate use
- Lose the right to have a corporate credit card if you lose a receipt or violate the policy
- Suspension or termination of employment if you give the company credit card to unauthorized people or abuse the expense limits
- Loss of company card privileges if expenses are not submitted on time
- Legal action and termination can be imposed if prohibited purchases are made using the company credit card
How Can a Corporate Card Policy Prevent Fraud?
Globalization and remote work have increased the risks of card fraud and identity theft. A proper corporate credit card policy will minimize these risks and ensure that your corporate funds are safe.
With Pluto, it is effortless to set card limits in real-time, so decreasing the spending limit when needed can be done in a matter of seconds. This ensures that a card is not over-exposed. If the card details were compromised, the perpetrator would not be able to withdraw any big sums.
You can see all the cardholders from your Pluto dashboard and create additional cards if needed. This prevents sharing card details between the employees, as it is simply not needed anymore. The cards are used by authorized personnel, who are aware of the proper use and policies - further preventing any potential fraud and leaks.
Pluto allows you to create a card for a particular transaction, purpose, or project. This will enable you to allocate a certain amount of money that can be spent on the card, meaning the risks of any authorized charges, re-bills, or other online scams are non-existent.
In a bigger organization, petty cash can be an issue as it is easy to defraud. Even when used properly, it is a pain to keep track of. Petty cash is no longer a problem with Pluto corporate cards, particularly when you can issue as many corporate p cards as you need with Pluto seconds (specifically 9 seconds).
The Value of a Corporate Credit Card Policy
Company card policies control employee spending, ensure compliance, and minimize fraud risk. It's even easier to maximize your results by integrating it with Pluto's expense management software.
By integrating with Pluto, you can:
- Issue unlimited corporate cards
- Digitize receipt reconciliation
- Reimburse in seconds
- Review all transactions in real-time
- Approve expenses in an instant
- Minimize the risk of employee fraud
A corporate card policy will help you to establish ground rules that will keep things running smoothly but, at the same time, will not limit your employees in their day-to-day work.
Ensure everyone who will have the card is aware of the rules. The great thing about using Pluto is that you can make your corporate card policy very simple, as Pluto has all the tools to manage your spending and keep everything under control.
Modern finance teams save time & money with Pluto.
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© Pluto Card is a Pluto Financial Services Inc. company 2023
The product and services mentioned on this webpage belong to Pluto Technologies Ltd (Pluto), a company incorporated under the laws of Dubai International Financial Centre (DIFC), Dubai holding commercial license number CL5294. Pluto is a financial technology provider and not a bank. Pluto provides certain facilities for the utilization of payment services through Nymcard Payment Services LLC under the applicable payment network and Bank Identification Number Sponsorship of Mashreq Bank PSC. This is pursuant to the license by Visa® Inc and is available for the residents of UAE subject to Terms and Conditions of use