Corporate credit cards come with many perks but have some unique challenges. Fortunately, companies can untangle the intricate web of credit spending with the right tools and strategies. These best practices for corporate credit card policy can help your organization maintain financial transparency, ensure compliance, and drive business success.
Not all company credit cards are created equal. Do some research and choose a partner that aligns with your business needs. Look for features such as customizable spending limits, robust reporting tools, and integrations with spend management platforms.
Selecting the right partner among the sea of providers can significantly impact your ability to manage business expenses effectively.
Not sure where to start? Check out this FAQ for small businesses and startups.
Before issuing physical or virtual cards to employees, it’s crucial to establish clear and comprehensive expense policies. Your corporate credit card policy should:
These policies should be accessible and easy to understand.
A corporate card policy sets expectations and helps prevent cardholders from misusing corporate funds.
To enhance control over card transactions, implement approval processes. For example, having a manager approve any business travel charges can help ensure employees stay within budget and adhere to company policy.
Defining a clear approval workflow ensures that expenditures align with your organization’s objectives and that financial decisions are not solely reliant on one individual.
Establish a systematic reconciliation process to ensure accuracy in financial reporting. Regularly compare credit statements with expense reports and receipts.
This practice helps identify any spending discrepancies early on and ensures that your financial records are up-to-date and error-free.
Manually tracking receipts and invoices can be time-consuming and prone to errors. Implementing automation tools for spend management can help streamline the process.
With automation tools, you can:
The ultimate goal is to streamline the recording, tracking, and approval process.
The “No Expense Report” Experience
Navan is an all-in-one travel and expense platform that streamlines business spending from swipe to reconciliation. The software eliminates the need for employees to waste time completing expense reports while giving companies complete visibility and control across employee spend.
And now, companies can enjoy these benefits while keeping their existing banking relationships.
Provide training to employees on proper card usage and adherence to financial policies. Educate them on the importance of timely and accurate expense reporting.
A well-informed workforce is more likely to follow guidelines, reducing the likelihood of compliance issues.
Quick expense submissions are crucial for efficient financial management. Encourage employees to submit receipts, invoices, and reports promptly. Or eliminate the hassle of completing expense reports altogether by using an automated solution like Navan.
Timely submissions not only streamline the reimbursement process but also enable faster tracking and reconciliation.
Implementing an incentivization program can help encourage responsible card usage and adherence to company policies. Recognize and reward employees who consistently demonstrate fiscal responsibility.
This approach motivates employees to align with company spending guidelines while cultivating a sense of ownership and pride in contributing to the organization’s financial success.
Driving Down Business Travel Costs
When traveling for work, employees often view policy caps as goals to reach rather than flexible limits. With Navan Rewards, the more an employee saves their company on hotels, the more rewards they earn.
Thanks to this perk, some companies have experienced up to:
15% travel cost savings
19% higher adoption rates
Increase accountability within your organization through mandates. By requiring the use of the company account, companies can streamline expense tracking, enforce adherence to established policies, and enhance overall financial control.
Plus, mandating card use makes it less likely that team members will mix personal and business purchases.
Small business owners and finance teams should regularly review and update corporate credit card policies to adapt to industry changes, regulatory requirements, and spending patterns. Keeping policies current can help your company adapt to evolving economic and business needs.
AI-Powered Spend Insights
Small business owners, finance managers, and CFOs have a new tool in their arsenal: Ava, Navan’s AI-powered chatbot that slices and dices real-time spend data to provide insights and savings opportunities. Ask Ava questions like “How can I save 10% on my company’s travel program?” and get advice tailored to your business. See Ava in action.
Effective corporate credit card management is an essential aspect of financial stewardship. By implementing these expert corporate credit card policy best practices, organizations can optimize their spend management processes, reduce risks, and contribute to their company’s overall financial health.
Ready to streamline company spending and implement an all-in-one travel and expense management software solution? Schedule a demo to see how our spend solutions work, or get up and running with Navan in just 5 minutes.
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