This is a question we get asked quite often. As the business owner, you wear multiple hats, which means you're exceedingly busy, which can sometimes be prohibitive as far as being able to purchase everything the company requires. This is where having employees with access to a company card can certainly come in handy. However, this could also become a source of stress, as you want to ensure you're maintaining a watchful eye over those business finances. In this post, we look at the pros and cons of giving your employees a company card.
Benefits of Giving Your Team Members a Company Card
There definitely are pluses to having employees with access to a business credit card. Among them:
- With a trusted employee, you can leave some of the purchasing tasks up to them and thus free your plate so that you can focus on running the company.
- You can now more easily keep track of what employees are spending on behalf of the company.
- Your employee isn't having to use his/her own funds in a pinch and then start a lengthy reimbursement trail.
The Downside to Employees Having a Company Card
It may seem like a smart idea to give employees access to company funds, but do keep in mind the following:
- There may be some issues that arise if an employee makes a purchase that you deem too costly.
- With a number of cards in circulation, there is a greater risk of fraud and theft.
- Some card companies will charge fees if additional holders are added to a credit card.
In the end, you have to evaluate your team members—do you trust them? Would it serve the company better for them to have actual cards? Weigh both sides carefully. At First Union, we can definitely work with you to get you and your employees business credit cards if that's what you decide. Give us a call to find out more!