As the excitement begins to slowly simmer for the festive days ahead, it can feel as though there are still endless things to buy. From gifts to food and drink, to wrapping paper and cards, it comes as no surprise that Christmas proves to be our most expensive time of year.
According to the bank of England, the average household spends almost £740 more in December – 29% more than any other month! Businesses also feel the squeeze at this time of year, with office parties and clients Christmas lunches soon racking up a hefty bill across December.
But is there a way to make managing our finances over the festive period more manageable? In this article, we explore the benefits of expense cards.
What is an expense card?
An expense card is a prepaid debit or credit card that businesses can use to control company spending. The idea is to curb overspending on occasions, events, or services that are charged back to your business.
You set the limit
One of the main advantages of a company expense card is that instead of having one card to split between an entire team or department, individuals can be supplied with their own prepaid card, which is topped up with the exact budget allowance required. It caps spending so that you can only spend what’s in the account – so in an ideal world you can never go over the set budget. This provides a much safer way for large businesses to conduct their team activities.
Trackable expenses
Having separate cards across different departments means that it’s much easier to track spending, separating expenses from other costs to your business. This also helps to minimise confusion when it comes to the accuracy of financial filing when it comes to tax season.
Freedom for spending
Placing the responsibility of company cards upon employee shoulders can often be stressful for a number of reasons. If it’s a social event, the card could get lost or stolen and the company’s funds would then be at risk. If the card is being passed from person to person to pay various bills as the night goes on, it becomes difficult to track what has been spent and unexpected costs can follow.
Having a prepaid expense card takes all of that stress away, lowering the financial risks involved. If you think prepaid expense cards could be the way forward for your company, research what open banking solutions are available to you.
