It is imperative to maintain a paper trail for all expenses disbursed to the employees in any company or organisation. Regardless of how small the amount is, everything must be on the record.
However, there are cases when expenses may be too big for employees, and they may not have the means to front the cost yet. This issue can disrupt the daily operation of the business. Hence, it is essential to use a universal gift card. It streamlines the reimbursement system of the firm.
At times, handing out the firm’s credit card doesn’t provide access to all employees. Only selected personnel can have a hold to such privilege. On the other hand, some companies can’t open credit cards under the organisation’s name; perhaps they may have previous bankruptcy records. Thus, a petty cash card is a terrific idea to resolve all these issues.
How It Works
In the past, tracking all these minor expenses is a tedious thing to do. It necessitates gathering receipts, writing on the record book, and counting the petty cash every day. And when the money runs out, the employee or department will have to wait until the next reimbursement happens.
At present, the majority of expenses come from online purchases. Hence, a universal gift card is an excellent replacement for conventional petty cash. It works the same but without the waiting for the next check, no record books, and no tracking of physical receipts. Everything is recorded on the account statement. Should the office need an official receipt, there’s always a way to track and print. Although filling up the expense report will have to be the usual way, at least it is now streamlined than the earlier days.
Reloadable Card
The good thing about this universal gift card is that users will have the option to reload, and the amount can be a rough estimate or depends on the company’s average expenses. To prevent from blowing the budget, ensure that the reload amount doesn’t exceed the usual petty cash amount. These numbers don’t have to change just because it is using a different mode of payment. Stick to the official budget.
Proper Handling Of The Card
Using the card requires close monitoring by a direct superior or someone who can manage to control the office’s spending. The personnel in charge of keeping the petty cash must also know how to filter the allowed expenses and when to source cheaper alternatives.
Major expenses must have approval from the higher management or accounting department before handing the card to the staff. It will teach staff how to use the card practically.
Despite the statement of account that comes to every end of the month, it is best to ask for physical receipts for every transaction. It will allow the accounting department to monitor expenses quickly, instead of continuously checking the record online. The reconciliation of the costs will be a lot faster this way. As for misplaced receipts, the personnel can always check back to the online records.
Converting to the universal gift card for minor expenses can indeed streamline the petty cash and reimbursement in any business. It limits fraud cases, and can successfully eliminate in the long run. And the most significant benefit above all is it keeps the company’s budget to stay on track.