Routine purchases are one of the most common things that are carried out by the employees of an organization. As a business owner, you always want to lower down your transaction costs for day to day purchases. But do you know that transaction costs usually exceed the value of the small products that your company requires? In such a situation, the purchasing cards or the procurement cards help you to lower down the costs.
Why Does Your Business Need P-Cards?
Today, a number of businesses have included p-cards to have an account for purchasing. This has led businesses to get rid of using personal credit cards and filing expense reports. The reason for this is that the P cards have their own expense management systems. These are made from a number of the different general ledger that identifies different categories of expenses including office supplies, meals, travels etc. This automatically reduces the time and effort that is wasted in organising the expenses.
A study has shown that the use of p-cards is expected to grow by approximately 11% annually in the coming years. As a result, by 2021 the drive market spending will be around $475 billion in the United States. Therefore, as a business owner, it is crucial to see how it can have a positive impact on your business. The industry insiders suggest “learn more about p cards from Bento” to remove the unwanted paperwork. Also, this will help you to eliminate the overhead cost related to traditional purchases.
How to Use a P-Card?
Before incorporating a p-card into your business, you need to learn how to use it. There are companies that provide p-cards to specific employees. For this, they need to follow the policies that are related to card usage procedures. For example, to make small purchases the employees can simply put the charge of the items into their p-cards, rather than filling those long requisition forms.
Did you know that making purchases with the help of the p-cards help in saving expenses per transaction which is around $65? This makes it a great way to make automatic payments instead of using high-volume cards.
Is P-Card a Debit Card?
A p-card can be referred to as a special business debit card. When transactions are made from the debit cards, the amount gets subtracted from the company’s account balance. The Purchasing cards also are attached to the organisation’s account.
But, it depends on you how much amount you want to transfer to the p-cards for the purchase. Depending on your company’s financial situation, you can also restrict the amount of expenditure in a day or week. Whereas, while using the traditional debit cards the employees can spend up to the amount that is available in the account.
As a business owner, managing the finances of your organization is crucial. And, a p-card is a perfect solution for handling the finances. It not only helps in streamlining but also results in an improved and accurate security of your employees. Besides, it also detects problems in spending areas and staying within the budget.