Corporate cards are no different in this modern age, where everything has gotten a virtual counterpart. For businesses of all scales, introducing these modern solutions has revolutionized how corporations carry out their financial operations. A premier example of the usability of these solutions can be found in Singapore, where businesses have been actively upgrading to digital solutions to streamline their financial operations.
What is a virtual credit card and how can a virtual credit card Singapore be an efficient tool in the business landscape?
Virtual corporate credit cards are payment tools issued by a company to its employees to carry out financial transactions on behalf of the company. A virtual corporate credit card differs from a physical corporate credit card in several ways:
- A virtual card can be issued instantly. Whereas, a physical card needs to be ordered first.
- A virtual card can have flexible expiration dates, while physical cards come with a fixed expiration date.
Below is a compilation of factors that can help you understand if your company needs corporate credit or debit cards:
1. You’re concerned about your company’s financial security: Using corporate cards reduces the risk of fraud, as each employee gets their unique card. That makes it easy for the company to track which employee made what transactions, including the time, date, and amount. Additionally, since a company can track all the transactions in real time, it can immediately flag unauthorized transactions. When your employees are using a physical corporate card, fraud or theft can be easily handled with a simple request to block the card.
2. Your financial teams find it difficult to sort the reimbursement requests. Using corporate cards can lead to eliminating or minimizing reimbursement filing, saving time and effort for both the employee and the financial team. When employees don’t have to pay out of their pocket, they need not file for reimbursement. This point is especially valid if your company has a large workforce. Keeping track of all expenses can be done easily with the help of corporate cards.
3. You want to improve your company’s financial health: Every company sets a budget as a financial roadmap. Corporate cards can play a pivotal role in adhering to and enhancing the budgetary framework of your company. As a company owner or a financial manager, you have the authority to set spending limits for each card, preventing employees from spending more than authorized. Additionally, corporate cards can enable financial teams to gain granular insights into the spending patterns across departments. These insights enable a more strategic approach to financial planning and resource allocation.
4. You want to centralize your company’s financial data: Beyond budget adherence, corporate cards offer the advantage of centralizing financial data. Having all the financial data in one place can make it easier for your team to prepare reports, conduct audits, and evaluate expense patterns. Furthermore, this data can be easily integrated with existing accounting systems, which minimizes the chances of errors or omissions, contributing to the accuracy and integrity of your company’s financial records.
5. You want to build the company’s credit history: A credit history is integral to acquiring credit to fuel various financial decisions. When your company would sometimes require loans from banks or financial institutions, a credit history would be a valuable tool because you could negotiate better terms to ease the repayment process. This is only valid when your company opts for a corporate credit card.
What should you consider when choosing a corporate card?
- Integration capabilities: Before choosing a corporate card, check if the card can easily integrate with your company’s existing payment tools and accounting software.
- Security: For any organization, security is of immense importance. Thus, check if the corporate card that you’re choosing for your organization has robust security to prevent unauthorized transactions. It can be helpful to go through reviews and official documentation outlining the security features.
- Rewards and other perks: Usually, merchants offer rewards, discounts, air miles, and other perks when you pay through a corporate card. These benefits can help you save substantially on your team’s expenses.
- Expiry dates: Virtual and physical corporate cards should come with expiration dates, so you can easily cut off access for those employees who no longer serve in your company.
Corporate cards can come in virtual and physical forms, and the choice between them relies on the company’s preferences and needs. Corporate cards can be extremely useful if you want to strengthen your team financially.
