You may have already heard of the professional bank card, also known as the business card, company card or corporate card. It is intended for certain members of a company, particularly those who travel frequently. The aim is simple: to enable the employees concerned to pay their expenses without having to use their own funds. This approach eliminates the need to take money out of their own pockets, simplifying the laborious process of managing expense reports.
Now, let's take a look at the two ways in which business bankcards work: the corporate bankcard and the business bankcard. What are the differences between these two options? Let's find out.
The corporate pro bank card
The corporate bank card is linked directly to your company's bank account. Several people can use it, depending on their needs. However, it is possible to define spending limits in advance, in agreement with management and the employee concerned.
The business card gives you direct access to your company's bank account. This enables the company to settle its expenses instantly or at a later date, as required. Each time you make an expense, the corresponding amount is debited from the account, and the finance department takes care of efficient cash management.
Benefits
If you run an SME or a start-up, you'll understand the usefulness of a business bank card. It offers unparalleled convenience by grouping all your expenses on a single bank statement. Everything is centralized on your business account, eliminating the need for multiple payment methods. This greatly simplifies accounting management.
As for your employees, you may remember the inevitable delays in reimbursing expense claims. Thanks to the pro card, this problem is a thing of the past. What's more, your employees will surely appreciate the fact that they no longer have to advance company expenses with their own money. Quite a pleasant prospect, isn't it?
Disadvantages
It's important to note that with the bank card pro, employees are no longer required to advance expenses. Nevertheless, they continue to fill in expense forms, which can entail the risk of losing or forgetting receipts. Sometimes, the feeling can develop that these expenses are not directly linked to their personal funds, which can make them less vigilant. On the other hand, there may be situations where the amounts shown on the bank statement do not correspond exactly to those on the original invoices. Tracking these expenses can then become a real headache for accounting teams.
When a company provides its employees with a business bank card, it is demonstrating a high level of trust in them. It is crucial to bear in mind that this exposes the company to a certain risk of fraudulent purchases. The temptation to make personal purchases or to exceed the ceilings set out in internal policy can sometimes be present. This is why, as a general rule, business bank cards are issued to members of management and to employees who have reached a certain level of responsibility. It is advisable to limit the number of people with access to the company's pro card.
Business card
If you work for a large company, you've probably already heard of the business card. The purpose of this card is to cover expenses directly linked to your company's activities. However, make no mistake: this is not a single card, but a number of business cards, allocated individually to certain employees. These cards enable employees to manage their business expenses independently, whether in France or abroad. In general, your employer sets monthly or per-assignment spending limits, to provide you with a budgetary framework.
The benefits
Business card transactions are clearly visible on the company's bank account, greatly simplifying expense management. The finance department can monitor and verify these expenses in real time, then validate them remotely. What's more, each card's spending limit can be changed at any time, considerably enhancing security.
Another interesting point is the elimination of expense advances. You'll no longer have to ask for advances when you travel on business. The card eliminates all the time-consuming steps involved in estimating costs, adjusting them in line with actual expenditure, and reimbursing or adjusting them once receipts have been checked.
Disadvantages
It's important to bear in mind that certain elements remain unchanged. Receipts are still required, and it's important that every expense is justified. As with conventional business cards, there is always a risk of fraud, loss, oversight or error.
The more cards are distributed, the higher the bank charges. It is therefore advisable to distribute these cards individually to employees who really need them. You should also bear in mind that the number of cards in circulation can complicate management.
What do corporate and business cards have in common?
These two types of card address the same theme: the business expenses of employees on the move. Their aim is to make expense management simpler and more secure. These cards are interesting tools for better managing your business expenses.