Corporate Credit Card Management - Guidelines, Processes & Best Practices

If you’ve learned anything from all those billion-dollar corporate scandals on TV news, it’s this: always be a transparent and honest professional when reporting corporate expenses. Companies entrust their employees to charge authorized business expenses directly to the company using corporate cards. 

This is not limited to supplies but also covers travel expenses like flights, hotel rooms, and sometimes even lunches or dinners for clients. it’s better than an employee paying out of their own pocket.

With this privilege comes added financial obligations, however. We’re not just talking about recording accurate business records, but also the obligation to follow the company’s corporate credit card protocol.

In this article, we’re going to discuss guidelines, processes, and practices that most companies require from their card holders.

Explain Responsibilities to All Card-Holders

You can’t expect employees to understand their privileges and limitations if you don’t explain them from the get go. 

While it might be customary to read a manual, it’s best to reiterate the main points in conversation. Explain any reimbursement policies, what expenses are covered, and what are not. Practically any corporation will tell employees never to charge personal expenses unless they directly relate to business expenses, and the employee has been given authorization. Make sure they understand that no one else besides the name on the card, employee or not, is allowed to make purchases on behalf of the company. 

Even if you’re a sole proprietor, you might find it more advantageous to use a business card than charging personal items on a credit card. 

Explain Security Protocol

When businesses lose credit cards, the results are even more disastrous than a personal account being compromised. Some business cards might have high borrowing limits. If an employee were responsible for losing thousands of dollars from an accident, it would reflect badly on his/her professionalism. 

For that reason, it’s very important to follow all safety instructions to make sure the card doesn’t get compromised. If there are no security protocols, create them, and share them with card holders. 

Even something as minor as the credit card expiration date is significant, as this guide explains. 

Simplify Expense Reporting

Not only should you hold onto all receipts, but it’s important to tell employees how to organize them in such a way that they can explain the details of all these expenses. This protects the company’s finances as well as the employee’s trust in the company. 

Generally, expense sheets should include important ID information like date, vendor, business purpose, and any other memos for recalling information. 

Keeping accurate and easy-to-read records is just as important as having working hardware and software. 

We also recently discussed the importance of replacing old computers and when it’s time to upgrade to ensure all security loopholes are covered.

Choose Quality Expense Management Software

Expense management software helps keep all the company’s finances organized, including expenses, monthly reports, potential fraud alerts, and even analytics reports. Analytics reports can track how money is spent, when, and if there are any patterns for better or for worse. 

Professional and field-appropriate software not only keeps things organized, and with easy search filters, but it can also manage the corporate cards of multiple employees. 

One of the best reasons to get connected is integration with credit cards, bank accounts, and other online services. With online integration, financial changes, security notifications, and rewards points can be instantaneously transferred and can be reconciled quickly. 

Here’s a recent article on how to decide what management software is best for a small business.

Corporate Cards Are Increasing

An estimated one in four companies now invests in corporate credit card programs for a greater number of employees. 

When the protocol is followed, a corporate card can be a generous and professional way to help take away some financial burdens of the model employee. 

While it’s true that higher-status employees and executives have more rights in dealing with corporate money, it’s never an excuse for poor planning and a lack of communication. 

By doing research in advance, and explaining protocols early on, you can avoid problems with corporate cards later and build a stronger and more efficient team.