Expenses are an expansive headache for most businesses. Whether it’s purchasing office supplies, business travel, client entertainment or vehicle maintenance — logging and keeping track of everything is often much more work than it should be.
That is why more and more businesses are turning to commercial card programs.
A commercial card program is a single card product that can be used for purchasing goods and services, effectively consolidating multiple payment streams into a single program to manage expenses. The program’s reporting system provides a detailed description of who made a purchase, and where and when it was made. Each card can be assigned various limits to manage the dollar amounts and types of expenses authorized for individual employees.
This allows for the centralization of data, making it easy to obtain information on strategic sourcing opportunities and policy compliance. More accurate data enables managers to improve their ability to negotiate better pricing from vendors and ensure their employees are following corporate policies.
“A commercial card program is a convenient and cost-effective way to streamline your organization’s purchasing process,” says Suzanne Colmenero, a senior business relationship manager at Wells Fargo Bank. “You can use a commercial card to purchase anything, from travel expenses to supplies, and even fleet expenses.”
Smart Business spoke with Colmenero about commercial card programs and how to determine if they’re right for your business.
Why is the commercial card becoming an increasingly popular way to manage expenses?
Because it can streamline your company’s purchasing process by automating expense management processes and controlling expenses. With more and more businesses accepting Visa and MasterCard, commercial cards are becoming the preferred way to conduct business. A commercial card program can offer both hard and soft dollar savings for organizations using them, improved cash management, greater control over spending and streamlined expense management.
Commercial card programs have several other benefits. Employees who carried multiple credit cards can now use a single card for business purposes. Employees no longer have to decide when to use which card, eliminating confusion and decreasing reliance on other forms of payment, which often are more expensive to process. Also, a commercial card program can result in increased savings by centralizing the administration and support of the program. One monthly invoice is processed for your organization’s expenditures, and you get better information faster with online reporting features.