Digital finance is one of the key trends of the current decade. Today, many online platforms offer business expense card issuing and real-time management of company expenses. Using them comes with many advantages, such as better monitoring of the company’s financial condition, accelerated cash flow, accounting automation, etc.
However, even such useful trends require careful weighing of all the pros and cons before implementing a new technological solution. The use of business expense cards can pose many risks, challenges, and problems when viewed from the perspective of a business’s relationship with employees. Without proper preparation, it opens the door to unauthorized use of funds, reduced accounting efficiency, and even tension within teams.
In this brief overview, we’ll talk about the most common problems associated with the misuse of business expense cards and provide solutions.
Misuse or Fraudulent Activity
Traditional expense management methods involve personal communication between a responsible employee and a manager, accountant, or financier. This creates a kind of “fuse,” reducing the employee’s motivation for violations and making it easier to detect fraud.
This is not the case with digital finance — reducing the level of personal interaction creates the illusion of uncontrolled control. Employees may consciously or subconsciously spend money from a corporate account for their personal needs or perform services for other companies. Even if these expenses are less than 0.1%, they set dangerous precedents and should not be ignored.
Solution:
· Before implementing business expense cards, conduct company-wide training to clearly define the boundaries of what is allowed and what is not.
· Set limits, manual approvals of transactions for new employees, and selective financial monitoring. You can do all this via the Wallester Business online platform.
· Conduct a retrospective analysis of transactions even in cases where the company’s total budget does not exceed the established limits.
Poor Tracking and Accountability
The reimbursement system has a built-in mechanism for punishment and reward. If an employee fails to submit documents to the accounting department on time, they will not receive money and will be forced to pay for corporate expenses themselves.
In the case of business expense cards, the employee pays from the corporate account and does not bear additional risks. As a result, they are not highly motivated to keep proper records. This approach often leads to the loss of essential documents, accounting irregularities, and even fines for the company. And this is the same problem that is much easier to prevent than to deal with its consequences.
Solution:
· Choose platforms with automatic reminders to attach supporting documents. For example, the Wallester mobile app displays a message about the need to scan receipts.
· Establish clear workflow frameworks with a fixed sequence of actions. For example, request — approval — payment — reporting — receipt of goods and services.
· Make the need to periodically check the correctness of documentation the responsibility of department heads and team leaders, not just accountants and financiers.
Delays in Resolving Issues
When making cash payments or writing checks, you can bypass most problems. Even with previous violations, a manager can make a manual decision or write a check on their behalf. This somewhat reduces the level of security but allows you to overcome difficulties and make payments on time under time constraints.
You won’t have such brute-force tools when using business expense cards. If you try to overcome obstacles, you risk breaking automated workflows and creating chaos. If you ignore the problems, you’ll end up with delays in payments and a decrease in trust between management and employees.
Solution:
· Think about backup ways to make payments in advance. Regularly conduct training sessions to explain where to go in case of problems.
· Choose a reliable provider for business expense card issuing that allows you to instantly open new cards if necessary and flexibly manage blocking/unblocking accounts.
· Appoint a responsible person to collect employee requests and forward them to technical support.
Concerns Among Employees
Managers often see digital finance as a purely positive phenomenon that has no significant drawbacks. However, from an employee perspective, things are not so rosy. The first question they have is whether business expense cards should be a tool for granting privileges. Why did another employee get a card and I didn’t? Why does my colleague have a 10 times higher limit?
Oversight can also lead to tension in the team. No one likes to work “under the radar” and know that their every move is monitored by management. Employees often view this phenomenon as a lack of trust, micromanagement, and poor corporate culture.
Solution:
· Create the clearest and most transparent rules regarding when business expense cards are issued, who receives them, and what the limits depend on. Try not to change them manually — resort to this solution only in emergencies.
· If you change your powers and responsibilities, be sure to review the limits and notify everyone about them via email or corporate messenger.
· Don’t try to hide the numbers — despite your best efforts, employees will discuss them in informal settings. Be open about who uses the cards and how much money they have to spend.
Conclusion
Business expense cards are among the most common and effective digital finance tools. Investing in the right systems and processes can transform them into tools that benefit the business and its employees. However, you need to remember that every advantage can come with a disadvantage, so you should carefully plan your transition to new tech solutions. By proactively addressing challenges such as training gaps, policy disputes, and perceived inequities, companies can foster a positive relationship with employees while maintaining control over finances. For businesses ready to issue expense cards, the key is balancing oversight with trust, ensuring employees feel empowered, not micromanaged.
