One of the biggest benefits of the business credit card is the reduction of administrative costs.
Corporate cards are used by a large number of firms per economy and not only because of their financing.
Employees who have a business card are easier to monitor and their work is optimized in more ways than one.
And it is not only used for loans, companies are realizing the savings offered at administrative levels. Here are some tips for you to save in that important area of your business through a business credit card.
1. Do not buy … rent
The decision to own or rent is based on your operations. Property increases costs and risk, while rent limits expenses and responsibilities.
By having a card the rental process is simpler and more convenient. For example, in the case of vehicles, insurance coverage usually has greater benefits.
2. Limit representation expenses
In the case of representation expenses, these tend to decrease as employees are limited to certain suppliers and ceilings.
And in the case of meetings with customers, there can be no waste because everything is reflected in the statement.
3. Debt Refinancing
Interest rates are lower especially when you do debt refinancing. In complicated times it is good to maintain liquidity for emergencies.
4. Control of service subscriptions
When paying and controlling everything by means of a corporate card, subscription charges are reflected that are not entirely necessary and often go unnoticed.
5. Reduce travel costs
Increase the scrutiny of your expense accounts since with a corporate card from your place of origin you can book in business hotels instead of luxury hotels that are more expensive.
If you also make an agreement with a provider you can get discounts and free nights.
6. Remove paper
Managing paper takes a lot of time and is expensive. Sorting, archiving and searching archives demand time and personnel. Purchase a scanner and digitize all important papers to keep them in well-organized electronic files that save space and reduce administrative burden.
The books and records of your company are essential for continuous operation, so it is important to keep and secure copies of electronic files within your facility and in a remote location.
7. Use miles programs for trips
If you or your employees fly regularly, use only one airline with a good travel rewards program.
The miles that accumulate can be used for the benefit of the company itself or to reward employees according to their productivity.
Reducing administrative costs requires the cooperation and participation of your employees. Encourage their participation so that everyone works in the same line.