Corporate credit cards are becoming an indispensable part of businesses today. According to Tech Wire studies on corporate digital payment , “Though traditionally restricted to travel-related expenditures, businesses spending via corporate credit cards now presents a budding opportunity worth US$500 billion in India.”
A significant number of companies are adopting RazorpayX Corporate Cards for their business. And the reasons are multifold. To mention a few here;
- It has no liabilities on the individual
- As a business, you have complete control and visibility over your spends
- It has a much higher limit on the funds you can access when compared to personal cards or business credit cards
- Without much effort, you will be able to claim accurate business expenses and reduce your tax liability
- Any expense will happen through main or add-on cards with pre-decided limits and permissions, which means there’s little room for misuse
- It helps build your company’s credit score
However, if not managed efficiently, corporate credit cards can cause some serious damage to your business.
Best Corporate card management practices
Here are some tips to help you successfully manage your RazorpayX Corporate Card and employee spending.
1. Set clear cardholder responsibilities
When getting a RazorpayX Corporate Card for yourself and your employees, it is imperative that you lay out strict rules for the use of corporate credit cards within your company. Your employees should know that corporate credit cards cannot be used for personal expenses heavily. Another essential element is that only the person whose name is on the corporate credit card is eligible to use it. Additionally, you can get an Add-on Card for team members and reduce your OTP hassles.
2. Use the dashboard
The dashboard that accompanies a RazorpayX Corporate Card can help you track when, where and why employees are spending company money. You can typically sort through your corporate credit card spend by vendor, department and employee. Sorting ensures that even if many employees use a corporate credit card account, you can still monitor and track exact spending practices. This helps you manage your expenses really well. And, you don’t have to worry about making reimbursements to your employee later on.
3. Establish limits on spending
Set a specific amount or credit line on your RazorpayX Corporate Cards while handing them to your employees. It is important to deploy multiple types of spending limits to ensure that employees are spending company money within reason. You can also specify the permissions such as offline use and types of spends on your corporate credit card.
4. Require approval when necessary
It can be helpful if your employees take approval for larger costs, such as expensive client dinners or long-distance flights. Not only does this ensure that you are aware of when and why your employees are taking on certain larger expenses, but it also establishes an expectation with employees that large expenses must be valid and justified whenever necessary.
5. Conduct annual reviews
Conduct annual corporate credit card user entitlements for every employee. This will ensure that department heads are aligned with corporate credit card spend limits according to the responsibilities of employees. If an employee no longer works in a function that requires a corporate credit card, then they can be removed from the corporate credit card program.
With a RazorpayX Corporate Card, you can easily track and manage the money that is being spent on business operations. Following the best practices mentioned above will lead you to a well-run corporate credit card account and smooth sailing in how you spend company funds.
Do you have a Razorpay Corporate Card yet? If not, join the waitlist today!
The RazorpayX Corporate Cards are developed in association with SBM India, one of the biggest banks in the APAC region.