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At Jasmin Group we frequently encounter organizations that have issued debit cards to their employees. While this might seem like a straightforward method for executives to track and categorize transactions in QuickBooks, it presents significant risks. What are these risks? If compromised, a debit card could drain your company’s bank account 🚨, and unlike credit cards, the federal protections for debit cards are substantially weaker. Additionally, it could take up to two weeks for the bank to restore the stolen funds 🕒.
In contrast, credit cards are generally safer and more manageable for business use. Before issuing credit cards to your employees, consider these key guidelines:
📝Establish a Finance Policy. Clearly define eligibility for a card, usage permissions, spending limits, approval requirements, and policies for activating or deactivating cards. Also, include how to manage and submit expense reports.
🛒 Adopt a Procurement Policy. Ensure purchases are made consistently and responsibly by following a formal procurement process.
💳 Select a Suitable Credit Card. Choose a card that offers benefits aligned with your organization's needs and goals.
💻 Opt for Enhanced Controls. If necessary, select a card that allows for setting specific credit limits and purchase approvals, and integrates easily with accounting software like QuickBooks.
With thoughtful planning and the right policies, you can significantly reduce financial risks and maintain smooth operational control. The Jasmin Group is ready to assist you in developing robust finance policies tailored to your needs. Contact us today to get started at www.JasminGroupLLC.com 🌟.
