Corporate credit cards are cards that companies issue to their employees to carry out authorized business expenses on behalf of the corporation. With the help of corporate credit cards, employees can work more efficiently to avoid delays in decision-making related to essential business expenses.
With EnKash corporate credit cards, businesses can streamline their working capital and funds in one place. It also provides complete visibility of every single transaction. Additionally, EnKash corporate credit card system is a dynamic payments system that enables an automatic reconciliation process by comparing the company’s accounts payables with the bank statements to ensure that the transactions recorded in the business accounts have actually taken place and the details of the transactions are recorded accurately
Why are Corporate Credit Cards in India becoming important for Startups?
If you are a startup, EnKash corporate cards help your business grow. Corporate credit cards are an ideal solution to streamline all the business expenses in one place. Also, as a corporate card for startups, it enables the employees to take vital business decisions on time instead of waiting for approvals from the top management.
Even though corporate business cards to multiple employees for carrying out authorized business expenses empowers them to be quicker and more efficient, it can also lead to difficulties in managing and keeping track of business expenses effectively.
Also, with multiple employees accessing the company’s funds, the business runs a considerable risk of financial leaks. So to have complete control over the business finances, startups need to carry out timely corporate card reconciliation.
Advantages of Corporate Card Reconciliation
A corporate card reconciliation is a process by which a business can compare and track the transactions of the company’s ledger with the bank statements. The process allows the business to ascertain that the business funds are used to make only authorized payments.
With a corporate credit card reconciliation process, startups can detect accounting discrepancies, false filing of expenses, cases of double payments, or accidental payments to a vendor. All these factors can affect the business growth and, in worst cases, can lead to legal actions against the company itself.
A corporate credit card reconciliation process helps the company to track all the financial transactions by comparing accounting books, receipts, and other financial documents with the bank statement. But, the reconciliation process can be challenging if the company deals with many vendors. In addition, it is humanly impossible for someone to evaluate and detect all the financial discrepancies with 100% accuracy.
Disadvantages of manual corporate card reconciliation process
- Traditional bookkeeping is an inefficient way to maintain accounting records. Furthermore, accounting records manually updated are prone to errors, as employees can make faulty entries or accidentally make double entries for a single transaction.
- Though the employees are issued with separate corporate cards in India, most often, in cases of emergencies, employees end up sharing their cards with colleagues. This can sometimes lead to double entry by both employees or failing to update the business transaction completely.
- Also, the reconciliation process is expensive and time-consuming, as the company has to hire staff or outsource the work to a third party to examine the accounting books for an unbiased evaluation.
- The major problem with corporate business cards is the number of employees involved in the company finances. Many employees outsmart the company by not reporting the correct transaction amount to claim extra reimbursement. Without proper financial reporting, the business is at risk of financial leaks.
- Corporate cards for startups are made to help employees make authorized expenses. Still, if the employees are unclear about which costs fall under authorized business expenses, it can result in the company losing financial resources.
Managing and keeping track of business expenses manually using traditional bookkeeping methods can lead to miscalculations.
Additionally, keeping track of every transaction with accurate details helps in the corporate credit card reconciliation process. To have complete control over business spending, startups need to automate their business finances with dynamic expense management software.
Why do you need spend management software to track credit card usage?
An expense management software like EnKash corporate card expense management software enables start-ups to streamline all their business expenses in one place. It allows companies to manage, track, control, and examine business funds effectively.
With EnKash corporate cards for startups, businesses can analyze and evaluate where the company funds are being used. The expense management software records every single transaction automatically. Also, the software can reconcile your credit statements with your business accounting records with complete accuracy.
Why automate Corporate Credit Card Reconciliation process
The traditional methods of recording, analyzing, verifying, and managing the business funds and reimbursement process are prone to errors or biased evaluation. Automating the corporate credit card reconciliation process enables the business to control and evaluate the business finances digitally with just a few clicks.
The EnKash expense management software provides businesses with a better way to maintain their accounting records in one place with a multi-functional dashboard. The automation software records the details of transactions and uploads the virtual receipts accurately, which enables the company to avoid any discrepancies in the financial records.
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