Did you know that over 30% of business bankruptcies are caused by employee theft? If you are lackadaisical in your financial and spending policies for employees, they might take advantage of it.
Even if you trust your employees and have a strict expense policy, it’s common for human error to cause expense reporting mistakes. A P-card can change that.
What is a P-card? Keep reading to find out.
What Is a P-Card?
What is a P-card exactly? Also known as payment cards, purchase cards, and procurement cards, a P-card is a type of company card that allows employees to buy goods and services.
A card like this is often used for B2B and office purchases that are too small for purchase orders.
A P-card might be shared within one department or given to an individual for real-time purchasing. A P-card provides a streamlined bill and reporting process that allows a business to track expenses in real-time.
P-Card vs. Credit Card
A purchasing card is often confused with a credit card but the two have vast differences that businesses should be aware of. Unlike traditional company credit cards, P-cards:
- Don’t have an interest or annual percentage rate (APR)
- Must be paid in full each month
- Don’t require a business credit check
- Don’t always include an annual fee
If you use p cards from Bento, you won’t pay any hidden fees but you will have a monthly payment plan.
How Do P-Cards Work?
Although different from a corporate debit or credit card, a P-card functions similarly to both. To make purchases, you can use the card to pay for things online, by invoice, and in person.
Once an employee buys an item or service they need, the bill goes through the P-card provider system much like a standard credit card bill.
A card-based spend management system will allow you to approve certain expenses to ensure your employees are only using the cards for things allowed in the expense policy.
Your business can pay for bills automatically by connecting the corporate checking account or pay them manually each month. You’ll want a P-card provider system that connects to your current accounting systems.
P-Card Benefits
A company charge should not be taken lightly in any business. Even if you trust your employees to pay for only work-related services and goods while accurately reporting expenses, human error is a factor.
When you switch to a card-based spend management system, you benefit from the following:
- Saved time
- Saved Money
- Data security
- Real-time data
- Fraud prevention
- Early pay discounts and rebates
Depending on the card system you choose, you’ll have different features that work towards the spend management goals of your company.
Make the Switch: Get a P-Card for Business Today
Your current way of reporting and analyzing employee expenses might not be ideal for business. If you can’t keep track of payments and want to ensure financial data accuracy, a card-based spend management system is best.
So, what is a P-card exactly? It’s unlike a credit card because it doesn’t come with additional fees but like a credit card in that it allows for easy spend management.
Make the switch and get P-cards for business today. Don’t forget to keep coming back for more articles like this!
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