In the last decade, advances in network, payment and banking technology have made it inexpensive and easy for you to electronically control your business’ cash outflows. As a result, more and more small businesses are making their bill, payroll and tax payments online, and the use of business credit and debit cards is on the rise.
Debit cards, for example, are the second-fastest growing form of payments because they are a practical way for businesses to limit employee spending and control cash expenditures.(1) Technology also adds a new layer of control for owners. Some banks offer convenient expense-management tools so you can control, manage, track and stop your spending online in minutes.
The following tools are readily available and can help you control spending with minimal time and effort:
1. Make payments online.
Online payments give you more acute control over all of your payables, including suppliers, employees, transfers and tax payments. Some banks offer a system that allows you to view and control your payables electronically through your online banking account. These tools provide you with payment reports, alerts if something goes wrong and simple steps to stop payments — all from your computer.
2. Replace cash and checks with card payments.
By using business credit and check cards, you can better track, limit and control cash expenditures. Instead of reporting and tracking cash with time-consuming expense reports or reconciliations, you can automatically obtain detailed accounting and reporting of your check and credit-card expenses online.
3. Implement spending controls.
Your financial institution can help you limit employee purchase authority by establishing clear entitlements, authorizations and spending limits. You can automate and control these guidelines easily from your computer, using basic online banking features and payment-card products.
Your online banking gives you the authority to approve all expenditures and restrict spending by others using automated entitlements, authorization and access. If employees must make payments as part of their jobs, consider issuing business credit and check cards that limit spending levels and access to cash, while still allowing for essential purchases.