As a business owner, you may eventually want your employees to have access to your business credit card. Rather than making them take turns with the primary card, you can open secondary card lines that tie into the main account. This gives you a chance to monitor how your employees use your card, and it keeps all of your business transactions in one simple location. Resources: Trinity edu, UMN, SBA
In the guide below, you will learn how to manage employee accounts for business credit cards so you can protect your finances.
Request Receipts for All Transactions
Collect receipts from your employees for all transactions on the card. This will give you a detailed look at what your employees are spending money on. The top credit card statements you can see online will only tell you where the money was spent and how much the transaction was. They will not itemize the transactions like a receipt will. An employee may spend $50 at Walmart, but what if $25 of that was spent on beer? You need to be aware of any workers trying to take advantage of you. Resources: NY gov, score.org
Review Your Monthly Statements Carefully
Check your credit card statements online once a month to see how your employees are spending your money. No matter how much you may trust your workers, there is always a chance that someone is going to make unauthorized transactions right under your nose. If one employee account seems to be far more active than the others, you may want to audit that person’s receipts to see what’s going on. When it comes to business credit cards, you can never be too informed about your account.
Create a Company Credit Card Policy
Let your employees know what they can and cannot use the company credit card for. Create a written credit card policy that details the appropriate use of employee cards. Are employees allowed to buy lunches on company time with their cards? Are there specific stores that they can and cannot shop through? Think about your biggest concerns with giving your employees credit cards, and make sure those are addressed in your policy.
Set Spending Limits for Each Employee
If you want to be proactive about business credit card fraud, you could set spending limits for each of the employees. These could be financial limits (spend up to X amount of money per month) or they could be category limits (only spend money with this category of merchants). You control where your money goes and how much of it gets spent. If an employee needs to make a purchase that’s out of the ordinary, they can request a temporary lift from you.
Activate Rewards Programs, If Applicable
If your business card has a rewards program attached to it, make sure that rewards program is active on all of the cards. Sometimes credit card issuers will only record the rewards from the primary card, not the secondary cards on the account. Make sure you open the lines for all of the cards on file so you can consolidate and maximize your business rewards.