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Corporate Cards Are The New Superheroes of Business Expenses

Over the past couple of years, Corporate cards have garnered a massive response. They are slowly but steadily becoming an indispensable tool in the arsenal of a successful businessman. Any business, whether a start-up or a BigTech, needs to keep track of the corporate expenses. The money spent by employees for business purposes should have a fail-proof way of being recorded and traced. While very few people feel that corporate or Corporate cards risk financial exposure, the majority are in full favour of Corporate cards being a must-have in any business' finance portfolio. There could be dual notions about the acceptability of Corporate cards in the corporate ecosphere but that does not mean that we misunderstand the usability, flexibility, and efficiency these cards provide on the go.

India is currently riding the way of the digital revolution. From businesses to homes, everything is turning smarter, more intuitive, and accustomed to consumer needs. An increasing number of companies are adopting corporate credit cards. Although, there is still a higher penetration opportunity in India for corporate cards. The market is highly under-penetrated with the options available in Corporate cards that can be used in several customized ways. Let's take a quick look at the three most common Corporate cards available in the market.

  • Corporate Cards: These cards can be used to pay for expenses pertaining to the business. These expenses are either paid completely by the organization or shared between the organization and employee on a pre-decided basis.
  • P-Cards: P-cards, or Payment/Purchase/Procurement cards, are used exclusively for business-related payments and B2B purchases like rents, utilities, vendor payments, taxes, and much more. These cards are issued only to authorized employees and can be used solely for business transactions.
  • Hybrid Cards: As the name suggests, these cards are a combination of corporate cards and P-cards. The organization can however define spending and usage limits on these cards to prevent misuse by employees.

Each of these cards has its own set of usage and has varying levels of restrictions. For example, for buying office supplies, equipment or paying bills of any kind, P-cards are the best. But for business travel or client meals, a corporate card is your best option. However, hybrid cards are the most powerful as they can be used across the entire spectrum of business expenses.

Not every company opts for issuing Corporate cards for their employees. In such cases, employee reimbursement comes into the picture. Employees pay for business expenses from their own pockets and then submit the payment receipts to the finance team for reimbursement. Doing this requires an awful amount of expense tracking, maintaining receipts of transactions, reviews and approvals from the finance teams after cross-verifying every data and then finally approving the total amount. This process increases the chances of reimbursement fraud as employees can also stack up personal expenses and get away with them. Reimbursement is time-consuming, unreliable, and cumbersome for all teams involved.

Companies are now turning over a new leaf with Corporate cards for corporate spending to gain more control over corporate expenditure. With Corporate cards, companies can issue and manage cards, track expenses, and access rewards- all from a single platform.

Corporate cards are the new way of making payments and to shed some light on the reasons, let's take a look at few benefits of Corporate cards over traditional reimbursement methods:

  • Offers : One of the key benefits that Corporate cardholders enjoy is that of offers. Nowadays, almost every card provider offers some serious reward points and instant rebates on transactions done via cards. These rebates and reward points combined can generously increase the efficiency of the company's expense management system.
  • Better Control : Tracking spends vs budget can get tricky when cash payments are used as the primary mode of transaction. With a Corporate card, all you need to do is import the card statement in the expense report to generate an in-depth analysis of where and how money was spent. This can help identify weak points in the financial report, help make well-informed buying decisions, and gain more control on how and where the business' money is spent.
  • Fraud Reduction : More often than not, employees may try to get into expense fraud. Employees try to sneak in personal expenses under the garb of business expenses and get away unnoticed because of inefficient reimbursement methods. Enabling employees with corporate cards eliminates all these hassles from the root itself because expenses done via cards are fully transparent with high traceability. It is almost impossible for employees to fraudulently manipulate false receipts to claim expenses.
  • Increased Spend Visibility : With Corporate cards, it gets very easy to keep an eye on the company's expenses. Corporate cards keep a log of every transaction and update it in the database. This database is synced with the company's expense management platform so the finance teams can have real-time visibility of all expenditures as and when they happen. This saves hours' worth of time which is spent on reconciliation of all payments manually.

Having seen all these advantages, it is now clear that Corporate cards are the way forward for an efficient payments system. The cards can be customised per usage, can be distributed on an individual or department basis, and can be either prepaid or credit cards with an inbuilt credit line. Corporate cards help streamline all business expenses and empower employees to make decisions independently. While the flexibility and ease these cards offer are truly unmatched, we at EnKash are the best match for you when it comes to Corporate cards. We offer a variety of Corporate cards, p-cards, expense cards, and virtual cards for you to choose from according to your business needs. Show your employees that you care for them and have full faith in their expense decisions with the help of personalized expense cards and uplift your employees' morale to the next level.

Whatever be your reason, it's now EnKash season!

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