Using credit cards offers a number of benefits over cash-based payments. Better cash flow management, increased spending ability, and credit establishment are the most common reasons for credit cards. Corporate cards provide employees with a means to pay for business expenses incurred such as airfare, hotel, and dining.
Corporate credit cards also help streamline employee expense management. Instead of submitting reimbursement forms and waiting for payment – employees make necessary purchases without using personal accounts. Corporate cards are also useful for helping companies track and monitor employee spending.
Newer companies such as Brex and Ramp integrate virtual credit cards as part of their spend management software. While the technology simplifies expense management, it requires proprietary software with fewer credit card reward benefits.
Why Use a Corporate Card?
Let’s say an employee has to fly to meet a client last minute or perhaps grab lunch with a customer to close a deal – corporate cards provide employees with authorized spending accounts to pay for business expenses. Instead of waiting for approvals and issuing reimbursement forms – employees can instantly make purchasing decisions.
Today, most financial institutions offer a corporate card including Amex, Chase, and Capital One. Each credit card provides unique reward benefits, but lacks internal spend management software. Newer corporate card issuers like Ramp and Brex include spend management software, but have limited credit card rewards. Companies should understand the benefits and drawbacks of using each type of corporate credit card.
Finding the Right Credit Card for Your Business
Many corporate cards began as prepaid cards with cash preloaded on the card. However, times have changed. Smaller companies may not have the liquidity to establish corporate credit card accounts. Brex and Ramp were established as alternatives to traditional companies such as American Express, Chase, and Capital One.
Brex was created to go against the grain of traditional big banks. The Brex Card offers small companies and start-ups corporate credit cards without personal liability requirements. However, reward points earned through Brex can only be used with their limited vendors. Companies are also required to use Brex’s proprietary software to track spending. Brex may be useful for new companies and start-ups, but larger businesses may see more benefit in traditional business credit cards.
Ramp is another non-traditional corporate card provider. Their software helps companies oversee employee expenditures and streamline bill pay options but only offers 1.5% cash back. Furthermore, companies have to use Ramp’s software for expense management. Forbes claims the Ramp Business Card, “could be a dream come true for an overwhelmed small business.” However, the limited reward benefits and proprietary software systems may not be the best option for larger companies and franchise owners.
Traditional cards such as the Amex Business Platinum or Chase Ink provide franchise owners with points for airfare, hotel, and cash back rewards. However, these credit card providers lack internal employee expense management software.
There is another option. Docyt’s accounting automation software can help business owners enjoy their traditional corporate credit cards while also using Docyt software for spend management and accounting automation. Keep the corporate card you love and track and manage your spending with Docyt.
“Our company got sold on virtual credit cards. But we still have physical credit cards being used. The platform offered by the virtual card company doesn’t support our Amex and Capital One cards. We need a “hybrid” credit card management solution.”
Improve the Employee Corporate Card Experience
Docyt’s accounting automation software helps businesses efficiently manage their existing corporate credit cards. Using Docyt, companies can track and manage employee spending, automate expense reports, and reconcile credit card statements.
Docyt automatically pulls and extracts data from credit card accounts and receipts and syncs it to your accounting software – meaning no more time spent on manual data entry. Simply connect your bank and credit card accounts to Docyt and upload your receipts, Docyt will do the rest. Docyt handles the spend management and credit card accounting and you can keep your favorite corporate credit card. Do you have multiple corporate credit cards? Docyt is able to manage them all.
Get Started with Docyt
Docyt accounting automation software enables business owners and managers to have complete oversight over corporate card spending. With Docyt, you’ll be able to streamline employee expense management and keep your favorite cashback and rewards credit card.
If you’d like to see a live demo, schedule a free consultation today.