Do you need to manage expenses for your business and team? Digital credit cards have been around for some years but have recently grown in popularity as their user-friendly practicality is becoming appreciated by many business owners.
How do Digital Credit Cards Work?
The provider issues a digital card number in exactly the same format as a regular credit card. Cards are assigned to individuals who can use the card for all expenses, such as automatic credit payments for subscriptions or buying business purchases in-store using their Android or Apple wallet.
The cards are linked to the business bank account, which means the owner can control the amount of money allocated to a particular card. Within each card, you can set limits according to budgets for different types of spending categories or projects, and you can always see exactly how much of the set budget a team or individual staff member has spent. Staff can request additional funds if needed, and you can customise limits and authority levels for each user. Managing expenses becomes far more efficient and structured rather than relying on expense reports submitted long after the expense has been incurred.
Digital credit cards are easy to activate and, in some cases, are virtually immediate. You’ll get a dashboard by the provider that lets you see real-time information about where your money is being spent and by whom.
Using the card on a smartphone means a photo of the invoice or receipt can be uploaded immediately, making business bookkeeping more effective and accurate as data is captured at the time of the expense.
There are many providers of digital cards, and we encourage you to research the options, but if you need to manage team expenses, getting some form of digital card will be well worth your while.
Apart from the improved control and efficiency digital cards give the business owner, one of the most significant benefits is the minimisation of fraud and unapproved automatic billing.
Talk to us in Surbiton if you’d like to understand more or if we can help integrate the digital cards into your accounting.
