Best Credit Cards for Expense Management

  • If your small business has employees, managing their expenses is an important part of your overall business financial picture.
  • Using a corporate credit card can streamline the process of processing, reimbursing, and tracking expenses.
  • With Brex exiting the small and medium business credit card market, there are a few other business credit cards that small businesses can use for expense management.

What does expense management mean?

Expense management is how your business processes, reimburses, and tracks your employees’ business expenses. The system you use will depend on how many employees you have and how often they incur an employee expense.

Some common expenses include:

  • Business trips, including airfare and vehicle mileage
  • Accommodation, including hotels or Airbnbs for business trips or conferences
  • Food and catering, including guest entertainment
  • Equipment such as computers, telephones or desks
  • Bills for mobile phones or other equipment
  • Business subscriptions, such as software or trade publications

The types and limits of employee expenses covered by your company should be clearly defined in your expense policy. For example, if your company only covers food but not alcohol for customer entertainment, or if there is a limit on how much an employee can spend on a hotel room for a trip, these these must be clearly defined.

Expense management can be tedious and annoying for employees, especially if it’s a manual system. But for finance teams, it’s an important way to get accurate records and be able to plan your company’s finances. For business owners, it’s also a way to manage risk, save costs and help keep your employees happy. Tracking employee expenses is also very important when tax time arrives.

Typical Expense Management Methods

There are many expense management methods that companies use. The expense management solution you choose will depend on the size of your business, the number of employees you have, and how often they need to pay their business expenses.

Manual method of expense management

A common expense management tool is the manual method. In this system, employees use their own money or personal credit cards to pay for business expenses, then fill out expense reports and submit them for reimbursement. These expense reports are often printed with receipts attached, or they can be digital PDFs with digital receipts attached, sometimes sent via email. Then these expense reports must be entered into accounting software like Quickbooks. From there, a check can be generated or, in some cases, the employee can be reimbursed directly to their bank account by direct deposit.

Mobile apps and software for expense management

Some businesses may use a mobile app that can automate the process, generating a real-time expense report as employees enter their expenses and then submit it to start the reconciliation process. Generally, these automated processes are better suited to employees, who generally prefer not to spend a lot of time on their expense reports.

Business Credit Cards for Expense Management

An even easier way to manage expenses is to use a company credit card. In this case, the cardholder can use the card for business expenses and then submit receipts for card reconciliation. The finance team would review credit card transactions and compare them to receipts with credit card statements every month, skipping the refund process altogether. This can save employees time, as they don’t have to submit expense reports, and it keeps their personal accounts separate from their business accounts.

Using a business credit card, such as a Visa or Mastercard, for expense management can help you manage expenses because you can limit employee spending by setting spending limits, limiting the types of transactions covered by the card or by limiting the amount. can pass at once. You can even pre-approve vendors or merchants and locations for better card management.

Using credit cards for business expenses also makes it easier to track expenses because all expenses are on one credit card. Many credit card companies also issue virtual cards to make it easier for your employees to use the card without having to physically have it in their possession, simplifying online transactions.

2022 Small Business Credit Market Updates

Small businesses have seen a pendulum swing from the looser fiscal policies put in place in preparation for a pandemic recovery in 2020 and 2021. The recovery in 2021 has been particularly dramatic for startups, with venture capital funding reaching record highs and billion-dollar-valued “unicorn” businesses reaching new heights.

Now that interest rates are rising, inflation is on the rise and the possibility of a recession looms, markets are facing turbulence and uncertainty. Tech stocks have been falling lately and valuations are starting to feel fragile. Many venture capitalists are concerned that tech valuations will drop and venture capitalists may even withdraw funding from some investments. As boom times seem to be slowing down or even coming to an end, markets around the world are reacting and small and medium-sized enterprises (SMEs) could start to feel some of the effects. Fortunately, where new limits are imposed, there are also new possibilities.

Brex decides to remove SMEs from its marketplace?

A big impact on small businesses in the credit market this year was Brex’s sudden announcement that they were pulling out of the SME market. As a major provider of financial services to tech companies and later retailers and restaurants, many startups and entrepreneurs have turned to Brex as a source for their business credit cards, bank accounts and other financial solutions.

In the summer of 2022, Brex announced that small customers without institutional backing would have until August 15 to withdraw their funds from their online accounts and find a new provider. The company has chosen to focus on additional financial service requests for its larger customers, including mid-sized companies with longer financial histories and easier to find underwriting. According to the two founders, traditional small businesses simply have different needs than large tech companies, and they decided to focus on helping the latter.

Nav adds Corpay to its marketplace

Even though Brex is no longer an option for SMEs, other solutions are emerging to focus on their financial needs. Nav recently added Corpay, an online financial solution designed for small businesses. Corpay is actually an expense management solution first and foremost and allows you to streamline payments to your vendors and employee reimbursements, manage employee expenses, and help you learn how to establish business credit with your credit card. professional.

Corpay offers a suite of financial solutions for small businesses, including:

  • Automated Bill Payments
  • Smart ACH Payments
  • Automated expense workflows
  • Integrations with other software in your accounting and CRM workflows, including Quickbooks, Xero, Zapier and Slack
  • Mastercard Corpay

Using Corpay for expense management

Corpay One provides small businesses with an online expense management solution and offers a corporate credit card to help manage employee expenses.

To use Corpay, your employees can download the Corpay One iOS or Android app, upload real-time receipts and send reports immediately. The app analyzes receipts so employees don’t have to enter line items for each expense as they would with a traditional or manual expense report.

The expense management platform lets you create workflows to meet your bookkeeping and accounting needs. You can set up automated approvals for expenses and even issue reimbursements the same day. The app even lets you track expenses within an in-app communication tool.

You can also use the Corpay Mastercard to control credit spending by assigning cards to your team members. You can set limits on each card separately for different transactions. Moreover, you can use the Corpay Mastercard to pay your business bills and get a discount.

If you’re looking for the right business credit card or small business loans to help your business, Nav can provide you with personalized offers that you’re most likely to qualify for. Register for a free account to start seeing your options.

This article was originally written on July 27, 2022.

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