Reports show that for many businesses, expenses account for a significant proportion of overall expenditure – between 8% and 12% on average which, in turn, is forcing them to look closely at more cost effective and time-efficient solutions for expense management.
The biggest challenges when it comes to corporate expense management processes are the impact of credit card surcharges, fraudulent claims, unfair expense burdens on employees and the reconciliation/ auditing process, all of which ultimately impact upon businesses’ profit margins.
These issues are pushing an increasing number of businesses to move towards cost effective alternatives to corporate credit cards and expense approval and reimbursement.
As a result we are witnessing an ever-increasing number of SMEs opting for prepaid corporate expense solutions. This solution allows for total control over expenditure, with the ability to view employee transactions in real-time; allocates funds by department and individual; prevents employees from spending more than the amount on the card, and also has the facility to pull unused funds back off the cards into the controlling account.
Here at Tuxedo, we offer the flexibility of a platform called the eccount®, through which our innovative payment solutions are delivered. As well as supporting SMEs, this platform enables us to offer a solution more appropriate for larger companies where there are multiple departments. In such organisations the requirement for managing expenses can be an even greater task, with divisional P&Ls and the potential for more abuse across a wider employee base. For businesses like these, Tuxedo offers an enterprise eccount, enabling organisations to create a hierarchy of accounts to manage cards. This not only allows organisations to segment card users by sectors such as division or region, but also enables the management of these tiered accounts to be delegated, providing a simple departmental budgeting, reporting and administration solution.
The move to prepaid solutions is ever increasing, with global prepaid card transaction volumes having grown by more than 20% during the past four years and expected to reach 16.9 billion this year. In an environment where cost control and operating efficiency continue to be a focus for many businesses, a review of their expense management solution could provide a simple, low cost but highly effective solution.