In the 21st century, prepaid credit cards do more than help people spend; they also help them save and cut expenses. Through a prepaid card, you can budget. Some cards have customized budgeting features tailored to help you save and reduce expenses. Others have creative incentives that help you save more money. In a nutshell, prepaid cards enable you to bank sleek without needing the bank.
Below are some ways of reducing expenses using prepaid company cards:
Using a prepaid debit card, you can budget and allocate the exact amount of money you want to spend on a particular commodity or service. Further, you will be able to monitor funds as they go on and off the card. That will help you keep track of your money as you are able to know exactly where your money is going.
Prepaid cards also help you to place restrictions or alerts where necessary. Alerts are necessary, especially when you do not want to exceed the amount you had initially allocated to a specific good. The benefits of such restrictions are that; you or an employee cannot spend money that is not there.
Traditional paper cheques required a lot of labor, especially if you own a company with many employees. They required you to print and distribute the cheques to each employee, and sometimes, these cheques could get mixed up, which added more problems. However, prepaid cards will offer a sizeable labor cost because all payments are made electronically. Studies have shown that cheques cost about $0.82 to print and distribute compared to a prepaid card, which is about $0.13.
- Real-time reporting
The advantage of prepaid cards is that they give you a detailed report of the business’s spending. The report is routinely customized, and that makes it even more efficient. Compared to prepaid debit cards, credit cards will not give you any statement of spending up until the end of the month.
Prepaid cards will issue you with a detailed report after every expense incurred, and thus you will have complete visibility of all the spending you have made as it happens in real-time. Therefore, you will be able to take immediate action to reduce further spending that is not within your budget.
- Manage your employee’s spending
Companies that have many employees with business cards have a hard time trying to track the expenditure of each employee. The task becomes more complicated if the employees share a standard corporate credit card.
Some of the expenses employees incur, travel expenses, customer entertainment costs, or even purchasing fuel for company cars. With a prepaid card, you can set a budget for the employees, and through the reports, you can monitor the expenses in real-time. Also, you may issue each employee with a prepaid card, which will make it easier for you to track the expenditure.
- Prepaid business cards will reduce your business risks.
Owing to the fact that there is no credit facility for a prepaid card, neither you nor the employee can be able to accumulate debt. Debts are risky to a business because of bankruptcy possibility should an employee go on a spending spree.
Further, if an employee loses the card, it is easy to block it, and thus, no third party will be able to use it for their gain. Therefore, prepaid cards are safer than credit cards as they will prevent any unauthorized payments.
Prepaid cards are undoubtedly the future of banking. They are a great tool that helps businesses increase profits and employees increase personal savings by regulating expenses. Thus, a win-win situation, issue your employees with a prepaid card and trust them to make smaller purchases.
If you wish to regulate your employees’ spending using prepaid credit cards, Soldo is your ideal tool. It is a multi-user expense account that helps you achieve a better grasp of all your employees’ expenses. You can integrate it with your accounting software, and through this platform, you will be able to reconcile all petty cash expenses. Lastly, through this spending account, you can get full transaction statements at any time and set custom rules for each card issued.
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