Streamline Your Business Expenses with Virtual Cards

Efficient expense management is crucial to maintaining the financial health of your organisation. Spending is inexorably tied to cash flow. It is important for finance professionals to control these expenses to reduce waste and maximise profitability. This is more than just keeping costs low; it is about making smart spending decisions that align with your company’s strategic goals.

Virtual cards are an innovative solution that is growing in popularity. But what exactly are virtual cards, and why does your organisation need them? 

The old (painful!) way

Are you tired of paying with physical cards and manually reconciling expenses? Traditional methods with physical credit cards can lead to inefficiencies, errors, and security risks. Moreover, the lack of real-time visibility into spending patterns makes it challenging for businesses to make informed financial decisions. This fragmented approach wastes time for businesses, hampering productivity and impeding growth.

Benefits of an expense management solution

Organisations can improve the efficiency of credit card claims by integrating streamlined expense management systems into their core ERP platform. These systems can be customised to suit your organisation’s unique requirements, especially when it comes to approval workflows and subaccount allocation. As part of the implementation of these systems, your organisation should undergo a Business Process Improvement (BPI) session to identify areas of your processes that need improvement. This provides an opportunity to find ways to make things even smoother, like setting clear spending rules, giving your team more freedom with spending, or maintaining accountability for what is spent. Establishing standardised procedures and utilising automation tools can enhance transparency, accuracy, and control over expenses. 

What are Virtual Cards?

Virtual cards function similarly to traditional credit cards but are entirely digital, eliminating the need for managing and allocating physical cards. These virtual cards are generated instantly and electronically and can be issued to employees or vendors for specific transactions or purposes. Virtual cards have a myriad of use cases.

Issuing Virtual cards instead of staff claiming expenses

Boost staff satisfaction by issuing virtual cards to your team. This approach eases the financial burden on employees, giving them direct access to pre-approved company funds. Issuing company cards also streamlines the finance team’s expense management process.

Issuing Temporary Cards for Business Trips

Temporary virtual cards take the headache out of expense management on business trips. These cards come with specific limits and expiry dates, providing instant access to funds for your team in the field without compromising your control. With just a few clicks, employees can receive these cards, equipped with all necessary controls. Temporary virtual cards remove barriers to expense management without compromising security, visibility or control. Let your team focus on their work instead of on their expense claims.

Simplifying Supplier Payments and Digital Subscriptions

Virtual cards simplify digital payments, such as paying a supplier online or recurring digital subscriptions. This flexibility eliminates the need for cumbersome paperwork and manual processes, making transactions smoother and more efficient.

Why Businesses Love Virtual Cards

With the rise of digital transactions, virtual cards have emerged as a frontrunner for businesses looking to optimise their expense management processes.

1.     Enhanced security features

Virtual cards can be created as single or limited-use with unique card numbers and expiry details. This significantly reduces the risk of fraud, compromised cards, or unauthorised transactions.

2.     Real-time monitoring and control

Virtual cards empower your finance team to monitor expenditure in real-time and exercise precise control over spending instantly. This tracking capability allows organisations to enforce spending limits promptly, maintaining budgets.

3.     Streamlined Reconciliation Process

Expense management platforms with built-in virtual cards streamline the reconciliation process, so your team can save time and minimise errors. When integrated with business management solutions like MYOB Advanced (Acumatica) or MYOB Exo, virtual cards automatically transfer transaction data to your General Ledger (GL).

A team of 50 could save 100 hours per month by automating the reconciliation process. This equates to at least a $4000 per month saving just by implementing and integrating an expense management platform.

ProSpend introduces virtual cards

By leveraging virtual cards alongside best practices, such as standardised procedures and automation tools, companies can streamline operations, enhance security, and gain actionable insights into their spending habits. ProSpend (formerly expensemanager) is designed for organisations that want to manage business spending while proactively automating and streamlining their processes. The popular solution now offers integrated virtual cards.

ProSpend Virtual Cards eBook

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Learn how finance leaders are embracing the modernisation of finance

Organisations struggle to understand their financial health without clear visibility into where and how funds are being spent across different departments, projects, or locations. This lack of insight can hinder strategic decision-making for CEOs, CFOs, and business owners. Watch our webinar recording for CEOs and CFOs to learn how to automate your organisation’s accounts receivable process to improve spend management and visibility.

Kilimanjaro Consulting is ProSpend’s only Gold Partner, and their Partner of the Year. Talk to us about how to integrate ProSpend with your ERP system to improve efficiency. Email samacs@kilimanjaro-consulting.com or call 1300 857 464 (AU) or 0800 436 774 (NZ).