Applications for Credit

We’ve all heard the tales: government officials, school administrators, and even police officers have been caught using their business credit cards to finance personal shopping sprees. Those cases of credit card abuse are infuriating because taxpayers end up footing the bill for such buys. But what if you’re a manager whose employees have access to corporate credit cards? How can you make sure that their spending is legitimate?

First, it’s vital to define the boundaries of acceptable credit card use. Your company probably has a policy in place. Make sure that the employees receive a printed copy that’s simple to know. Get them to sign off, stating that they’ve receive the guidelines and agree to them. These guidelines should include deadlines for receipt submission as well as a list of permitted buys.

Make sure that your employees know what will happen if they abuse the system. A system of consequences should be in place, and those consequences should vary depending on the severity of the employee’s actions. A couple of accidental buys could merit a warning, while using the corporate card to finance a personal vacation should be grounds for termination – and possibly litigation!

Finally, be vigilant with the corporate credit card statements just as you would with your personal bills. Take the time to read the statements each month, and speak with employees about questionable buys. If your card offers extra security features, such as single-buy limits or filters, take advantage of them. That will keep employees from making large buys, or charging goods and services at retail stores.

Corporate credit card use can be very convenient for employees, but it’s vital to make sure those cards are being used as intended. A small vigilance and a few guidelines can prevent a major financial headache down the road.