Spend Management Improvement with Card Programs

The drudgery of expense reporting and spend management is a common and relatable theme in the corporate world. Approximately 60% are still manually submitting and approving expense reports.1 This practice leaves room for error and isn’t an effective means of cost control.

Corporate card programs are an easier, more efficient alternative. They offer six benefits that might align with your business' priorities.

1. Control employee spending.

   Employee expenses are growing in volume, and spending outside policy is also rising. In a recent survey, only 43% of CFOs said 75%-100% of employee expenses were within policy.2 Corporate cards, unlike traditional purchasing methods, provide better cost control with built-in rules that are customized for each cardholder. These parameters include dollar limits for purchases, approved merchants, product categories and locations. (Another bonus: a new corporate card program presents a great opportunity to evaluate your current spending policies, revise or update those policies and communicate them to employees.)

2. Save time and processing costs.

   Traditional spend management is notoriously time-consuming. It's also very expensive. The cost to manually process a single travel and expense report (T&E) is around $58.3 Processing time is usually 20 minutes but could be more than half an hour if there are errors.4
   
   Most corporate card programs integrate with accounting software to automatically generate reports, streamline approvals, and make reimbursement faster and easier. For example, many card programs offer automated reconciliation, which not only reduces the time required but is also more accurate and reliable than manual processing. Automation can reduce time spent on expense reports 57%, which represents a significant cost savings.5

3. Centralize and simplify spend management.

   T&E spending typically represents a company's second-highest indirect expense, behind labor costs, so it's essential that it’s closely monitored. But when expenses that are scattered across various cards, accounts, and payment tools trickle in it can be difficult to assess total costs. This makes a consolidated employee purchasing tool, like a corporate card program, even more critical.
   
   Corporate card programs centralize expenses under one payment tool with dashboard reporting, so it's much easier to organize, review and analyze purchases for efficiency and trending. This data can be further used to identify savings opportunities, enhance cost control and to optimize cash flow.  In fact, 68% of CFOs and treasurers are including cards as part of their cash management strategies.6
   
   For example, does an analysis of card usage reveal your company spends a lot of money with a particular vendor? If so, it might be time to negotiate better rates with that vendor. In addition, faster payments may qualify your company for discounts.

4. Prevent expense-related fraud.

   Corporations lose about five percent of revenue to occupational fraud, including expense fraud.7 Corporate card programs with automated processing offer the transparency needed to detect unusual activity sooner. These programs can usually monitor activity, flagging or precluding questionable purchases and preventing employee fraud.

5. Track budgets in real time for greater cost control.

   With all the paperwork, documentation and approvals required, a traditional multi-step process for employee spend management can take days or even weeks. It also blurs the view of outstanding expenses or cash flow. With a corporate card program, all employee cards are on the same statement cycle and spending is visible throughout the billing cycle for enhanced expense reporting.
   
   Companies don't have to wait for employees to submit receipts to get a clear view of spend. Finance managers will have real-time visibility into cash flow and expenses for improved budget oversight.

6. Provide a satisfying employee experience.

Some employees use their own funds for work-related purchases, potentially straining their personal finances and credit score in the process. Corporate cards allow employees to make approved purchases without having to dip into their personal accounts and wait to be reimbursed.

Many corporate cards include cardholder-friendly features like texting, emailing, or uploading receipts, as well as auto-populating transaction details. Helpful features like these make expense reporting easier, more timely and more accurate — a win for employees and finance managers alike. Providing corporate cards also communicates trust in employees’ ability to make purchases they need to effectively perform their jobs.

Companies have been slow to transition from manual purchasing and reimbursement processes. However, corporate card programs offer game-changing flexibility for organizations that want to control costs, save time, use resources more efficiently and improve expense reporting.

Invest in an efficient spend management solution.

To learn how a corporate card program can help your company improve spend management, complete a short form and a Synovus Treasury & Payment Solutions Consultant will contact you with more details. You can also stop by one of our local branches.