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Managing business expenses is a necessary part of running any company, but the methods you use can greatly impact efficiency, employee satisfaction, and financial transparency.
Traditionally, businesses have relied on expense reimbursements, where employees pay out of pocket for business expenses and submit receipts later for reimbursement. However, more and more companies are turning to corporate cards, which offer a streamlined and more efficient way to manage expenses.
In this post, we’ll explore the differences between traditional expense reimbursement and using corporate cards like those offered by Pemo, and why corporate cards might be the game-changer your business needs.
The Traditional Expense Reimbursement Process
Traditional expense reimbursement involves employees paying for business-related costs—travel, meals, office supplies—out of their own pockets. They then submit their receipts and wait for the finance team to process the reimbursement.
This method, while familiar, comes with several downsides:
- Time-Consuming: Employees must spend time gathering receipts, filling out reimbursement forms, and waiting for approval.
- Delayed Reimbursements: It’s common for reimbursements to take weeks, leaving employees out of pocket for an extended period.
- Risk of Human Error: The manual nature of the process means receipts can get lost, and errors in forms or calculations can occur.
- Lack of Transparency: Businesses may find it difficult to track spending in real-time, leading to poor visibility of where and when money is being spent.
For businesses aiming to streamline operations, this process can feel unnecessarily slow and cumbersome.
The Corporate Card Solution
Corporate cards, like the ones offered by Pemo, provide a faster, more efficient alternative. With a Pemo card, payments are made directly from the company account, eliminating the need for employees to pay out of pocket.
Here’s why businesses are shifting toward corporate cards:
1. Instant Expense Tracking
Whenever an employee uses their Pemo card, a real-time transaction notification is sent via the Pemo app. This allows immediate tracking of expenses and ensures transparency across the organization. Unlike traditional reimbursement, where tracking is delayed until after receipts are submitted, Pemo lets you see spending as it happens.
2. Effortless Receipt Management
Gone are the days of lost receipts or lengthy reimbursement forms. With Pemo, attaching a receipt to an expense is simple:
- Tap the Notification: As soon as you make a payment, you receive a mobile notification. Tapping it takes you directly to the expense.
- Add Your Receipt: Click the blue square icon to snap a photo of the receipt or upload an image from your phone.
- Confirm and Done! The receipt is automatically attached to the transaction, saving both time and effort.
This seamless process ensures that receipts are captured on the spot, reducing the risk of errors and delays.
3. Enhanced Control and Visibility
Corporate cards provide businesses with better control over spending. Pemo allows administrators to set spending limits, track transactions in real time, and monitor expenses across the company. This level of control is not possible with traditional reimbursement, where the process is often reactive rather than proactive.
4. Managing Out-of-Pocket Expenses
What about expenses not made with a Pemo card? No problem! Pemo offers the flexibility to manually add out-of-pocket expenses. Employees can enter details for any personal payments they made for business purposes, ensuring that all expenses are captured in one centralized system.
Conclusion: Why Corporate Cards Are the Future of Expense Management
Corporate cards like Pemo’s offer a faster, more streamlined way to manage business expenses. They eliminate the need for employees to pay out of pocket, simplify receipt management, and provide businesses with real-time visibility and control over spending.
By switching to a corporate card system, businesses can not only save time and reduce errors but also improve employee satisfaction and financial transparency. With Pemo’s easy-to-use app, managing expenses has never been simpler.
Ready to upgrade your expense management process? Learn more about how Pemo’s corporate cards can help your business today.
