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