How to keep people from abusing the company credit cards

Wondering how you can ensure that your different employees don't abuse your company credit cards?Here are some guidelines to help you control the use of company credit cards and how you can monitor the way that your employees use your company credit cards.

1.Put in place definite guidelines for the use of company credit cards.

The first way that you can prevent employee abuse of company credit cards is to set up strict and clear guidelines on how those company credit cards may be used.Strict guidelines can help your employees know exactly where the lines of proper credit card use are drawn.This means that they will know what they can purchase and what they should avoid.

Drawing up strict and clear guidelines for the use of company credit cards can also help you track the way that employees use those company credit cards.Determine exactly what types of purchases may be made with company credit cards.Come up with a definite, stream lined, and easy way to report and to record purchases made with company credit cards.Check the records of credit card use monthly with your credit card statements.

2.Consistently monitor company credit card use
Chances are that you have a bookkeeping department that keeps tracks of your business' finances.This department, or this single person, keeps tracks of financial records, keeps tracks of purchases, balances your books, and ensures that everything is on track.

Don't rely on your bookkeeper to keep tabs on your company's financial situation.Especially do not rely on your bookkeeper or your accounting department to ensure that all guidelines are being followed with the employee use of company credit cards.Your accountants are probably absolutely honest, and they are watching out for you.However, you need to look at your finances every single month.Double check your books.When it comes to the use of company credit cards, double check every single charge on your monthly statement with the records of purchases made by your employees.

Your employees are probably completely honest.But you should double check all purchases made every month.You also might want to have someone check even after you check to keep you honest.

3.Look into options offered by company credit card companies

Many credit card companies offer special programs designed just for corporate credit cards and credit cards used by small businesses.These companies offer services that are particularly customized for the needs of small businesses, including checking up on whether or not employees are abusing your company credit cards.

For example, EDS Corporate Credit Card Services offers you as a business owner to manage and to streamline your purchasing operations, including flexible credit purchasing operations.EPS Corporate Credit Card Services also allows you to track any purchases made within your company with your company credit cards.You can set spending limits, decide at which merchants the credit cards can actually be used, and rules for authorization of purchases.
All of these different options are designed to help you as the business owner to control and to track spending done by your employees.You as the business owner absolutely control the use of company credit cards.You should consider looking into different credit card companies that are specifically designed to help corporations streamline their purchasing departments and allow for greater administrative control and oversight.

4.Be clear about expectations and regulations

Your employees cannot be entirely faulted for using company credit cards in unapproved ways if you are not clear about what the guidelines and regulations are for using the company credit cards.Review often what the rules are.Make them clear.And make them easy to understand, along with ensuring that it is simple and easy to report purchases.