In any kind of business, whether it be big or small, employers have to trust their employees. It’s a common fact that if there is a lack of trust in a business, then the business will inevitably fail. However, better management of employee expenses can also create a more efficient workplace as well as a more productive workforce.
A recent study of Citizens Financial Group/Mastercard discovered that 55% of all small business owners believe that better management of employee expenses will reduce costs as well as benefit their business. In addition to that, 40% stated that more control over employee spending would give them more peace of mind.
The study also showed that 36% of small business owners use a cash reimbursement system in order to enable their employees to pay for day-to-day business expenses while 32% say that they use a company credit card or debit card. Furthermore, 29% have stated that they have petty cash funds available with 21% stating that they use their own personal credit card.
According to Head of Commercial Cards for Citizens Financial Group Stephen Wooters, “With 65% of small business owners using either a cash reimbursement system or a petty cash system to reimburse employees for company expenses – and another 31% handling all expenses themselves – the conclusion is obvious: This is not the most efficient way of running a business. So they should take advantage of easy-to-implement technology to provide the spend management solutions they need to succeed.”
It was also reported that 35% of small business owners wished they had an easier way to track and control employee expenses. In addition, 28% said that managing employee expenses is one of the things that they hate most about being a small business owner.
Source: Gaebler.com – Small Business Owners Think Controlling Employee Expenses Will Lead To Cost Savings
It’s important for businesses of any size to use an accounting software solution that they can trust. The larger the company, the more need there is for a streamlined solution that keeps track of spending across departments.