Cash used to run the show. It’s how business happened. It was, as they say, what made the world go ‘round. But times were simpler then, and – wait – times are simpler now. We’ve got corporate cards and electronic payments to cover everything, and every charge can easily be accounted for.
But cash and personal credit cards are virtually impossible to find or follow. You can’t know who’s spending what – or where or when – because you don’t find out until the expense reports come in. And what if that’s a month or two too late? So, no. Cash isn’t king. It’s more like an aging despot who’s causing the problems instead of bringing control to the kingdom.
Yet employees use it all the time, leaving you searching for their hidden spend. When you can’t see what’s going out the door, you can’t stop it.
Now’s not the best time to lose control of spending
Margins are tight in the best of times. Spending is something you always need to have mastery over – even if profits are coming in by the bucketload. Plus, in our current situation, when things are a bit tenuous, it is an absolute must to maintain control of spending.
That can be tricky, of course, because as we have mentioned – cash spending is invisible. At least until it shows up in expense reports. Or in mileage reports. Or in the stacks of receipts your team is sorting through right now. Even then, it’s not always accurately reported – and by that, we mean employees are not only making entry errors, some of them may be pushing your policies to the point of fraud.
So how do you take the reins?
This checklist discusses the power of controlling cash spend by exploring how small spending adjustments in your company can make a big difference. For instance, how does raising the threshold for corporate card use – while lowering it for cash – help drive employees to use their corporate cards? How many minutes can you cut from paperwork processes by having expense reports automated – and how many dollars are each of those minutes worth?
What’s it like to spend money in your company?
It’s also important to look at spending from the vantage point of the people who are doing it. Is it easier for your employees to use their own credit cards? Do they even have a corporate card? Do all your policies, programs, and procedures encourage the average individual to sidestep the rulebook?
You can begin to answer these questions by improving the way your employees – specifically, your traveling employees – book and manage their trips. And you already have the system in place to do so.
Extending your SAP Concur solution to further reduce the paperwork and processes employees have to go through will increase the likelihood that they’ll use your processes and systems. When your employees use your corporate tools, you’ll see (and capture) their spending.
So your travel and expense program isn’t a guessing game of “Who’s headed where and how much is it costing me?” It’s a simple way for employees to plan and purchase their business trips while you keep an eye on the expenses.
You’ll find more about it – and what business leaders are doing (and not doing) in regard to spend management – in the eBook: Cost, Compliance and the Keys to Control.
You’re in charge of every charge.
Cash doesn’t have to be a surprising little secret in your company. You already have the infrastructure in place. And with a few simple additions, you can get cash spending under control by giving your employees the kinds of tools they want to use. Tools that reward them with less busywork and more perks. Tools that keep them safe on the road and focused on their jobs. Tools that, in the end (actually from the very beginning) show you what they’re spending, so you can keep more cash in the company.