Managing expenses and record-keeping can be a complex and sometimes frustrating experience for a business — but does it need to be?
From taking the stress out of cash flow to streamlining your expense reporting, a business credit card is a wise way to declutter the financial side of business. When you are just starting out or looking to expand your business, a credit card can give you the flexibility and financial assurance you need to achieve your goals in the business world.
There are a multitude of benefits too! For example, armed with a business credit card, employees are empowered to make on-the-spot purchases without having to worry about a complex reimbursement process, while the business can stay across transactions in real-time. Plus, some credit card programs also offer bonus rewards and cashback schemes. All of this is on top of giving you a solid credit score you can use to apply for loans or other investments. Below is a list of five ways we think your company can benefit from using a business credit card.
Juggling physical and digital receipts is becoming a practice of the past. Gone are the days when you need to combine physical and digital records to try and accurately report your business spending. The best credit cards will integrate with your accounting software, turning this complicated and sometimes messy process into a few clicks of the mouse. Using a business credit card can eliminate any resources that would have otherwise been lost chasing down inaccuracies or double-checking receipts.
When the end of the financial year rolls around, finding gaps in the budget becomes easy. With a business credit card, reconciliation is automatic, and your attention can be focused onward and upwards — not weighed down by months-old spending decisions. Similarly, your employees can easily forward on expenses and spend more time doing what they do best.
Why waste time with excel spreadsheets? Modern banking, especially business purchases and expenses, invariably revolve around an app — an experience that is tailored to how you do business. You set the rules, and the app records the rest; setting spending limits and approvals, restricting purchases by category or merchant, and record-keeping in real-time. Some of the better business credit programs will offer multiple cards and the ability to set spending limits and monitor activity on each card.
No longer will time need to be spent by admin or staff processing claims and transactions, nor will your business be slowed down by the inevitability of human error. Automatic verification and controls can be put in place, which means a vast reduction in errors on a proven platform that can be customised to you.
Another headache that you can save when you acquire a business credit card is the oversight of staff spending. Providing cards and, in turn, immediate cash flow to employees will empower them to act on behalf of the business without concerns over reimbursement. Moreover, employees can also see key metrics, whether they be budgets or limits set by the business owner.
But, don’t fret — admin aren’t left in the dark.
You can set spending limits and monitor the account online. In addition, automated tracking lets admin and staff alike see when specific costs or spending habits can be reduced. When this clarity and efficiency is achieved, it will have a net positive effect on profits. Spending accountability can be a tricky thing to navigate, but when it is realised, it can only improve day to day operations of the business.
When considering a business loan application, a bank will often look at its credit history. Using a business credit card will help you build this history when you’re starting out, which will strengthen your credit rating. With a track record of consistent financial and credit management, your business will be looked upon as a safe and secure place for banks and other institutions to lend to.
If you are able to accrue a history of repayments, then you will be rewarded with greater financial flexibility in future. No more waiting for income before you can invest in inventory, new staff or advertising to grow your business. With a business credit card and a solid credit rating, nothing will stand in the way of your business’s growth.
One of the biggest hurdles to overcome when starting or growing your business is access to cash flow. A business credit card with low fees (and no annual fee) and a high credit limit will give you flexibility when payments undoubtedly arise. Moreover, if there are any unforeseen bills or debts that need immediate payment, then access to credit is a smart way to keep these expenses in check.
Lastly, and probably most importantly, a business isn't a business without inventory. Whether it is keeping the shelves stocked or your employees financially equipped, if cash flow is impeding your ability to run a prospering business, then it will stand in the way of profit and cause reputational damage. Often owners will turn to personal credit cards, however, there are limitations. Where a business card improves on personal credit is, businesses are routinely offered much greater spending limits and therefore more flexibility. Plus, it makes tax time a whole lot easier.
Here at Archa, we have taken all these things into account. We offer a credit card to simplify and centralise your business spending. Whether it is having the flexibility and control of multiple cards or a simple onboarding process, Archa outpaces traditional banking tenfold. When you pair that with our handy app, you unlock instant spending notifications and the ability to tailor the experience to your needs.
Tracking and limiting employee spending adds financial accountability and gives admin confidence. On top of all this, there are no hidden fees and a small upfront cost, with cash-back rewards on spending. Now with Apple Pay and Google Pay, the use and distribution of cards is made even easier.
So, if you’re tired of cumbersome and confusing financial admin, contact Archa today and sign up for our Beta program: Here