How to Use Virtual Cards to Manage Business Expenses

As a business owner, you may already know how to use virtual cards. But have you ever wondered just how virtual cards can help your business beyond just making payments?

The truth is, virtual cards offer a host of benefits that can streamline your expense management process and provide valuable insights into your business spending. With virtual cards, you can set spending limits for each employee, easily track expenses in real-time, and quickly identify areas where you may be overspending. 

Virtual cards also offer greater flexibility and convenience compared to traditional credit cards, with the ability to create and manage cards for specific purposes or vendors.

In this article, we'll explore the lesser-known benefits of virtual cards and show you how they can help take your business expense management to the next level. Virtual cards can offer a smart and effective solution if you want to manage your budget better, reduce administrative burden, or gain deeper insights into your business spending. 

So, if you're curious about how to use virtual cards to help your business, here are some tips on how to manage business expenses using a virtual card.

Set up spending limits

To manage expenses using a virtual card, it's important to set spending limits for each card. This will help ensure that employees are not overspending or using the card for non-business expenses. Most virtual card providers offer the option to set limits on a card-by-card basis, which allows you to adjust spending limits for each employee as needed.

Use virtual cards for specific expenses

To make expense tracking easier, it's a good idea to use virtual cards for specific expenses. For example, you may want to create a virtual card specifically for travel expenses, such as flights and hotels. This will help you easily identify these expenses when reviewing your company's financial records.

Link virtual cards to expense management software

By linking virtual cards to expense management software, you can easily track your company's spending and monitor employee expenses in real-time. 

Expense management software like Zoho Expense, Abacus, and Airbase can help you categorize expenses, create reports, and manage budgets. This can be especially helpful if you have a large number of employees and expenses to manage.

Monitor expenses regularly

To effectively manage expenses using virtual cards, it's important to monitor expenses regularly. This can help you identify any irregularities or suspicious activity. Regular monitoring can also help you identify areas where your company may be overspending, and allow you to take corrective action.

Set policies for virtual card use

To ensure that your employees are using virtual cards in the appropriate manner, it's important to set policies for how to use virtual cards. This can include setting guidelines on which expenses can be charged to a virtual card, and setting limits on the amount that can be charged. It's also a good idea to provide employees with clear instructions on how to use the virtual card, and what to do in case of a lost or stolen card.

Regularly review expenses

Regularly reviewing expenses can help you keep track of your company's spending and ensure that you are staying within your budget. This can involve reviewing virtual card transactions, categorizing expenses, and creating expense reports. By reviewing expenses regularly, you can also identify areas where you may be overspending and take corrective action as needed.

Ready to Manage your Business Expenses with Virtual Cards?

Managing business expenses using a virtual card can be an effective way to track your company's spending and ensure that you stay within your budget.  

By setting spending limits, using virtual cards for specific expenses, linking virtual cards to expense management software, monitoring expenses regularly, setting policies for virtual card use, and reviewing expenses regularly, you can effectively manage your business expenses and keep your finances in order.

If you’ve not created virtual cards for your business, click here to download the Bitnob app and create a Bitnob virtual dollar card for your business.