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Make use of modern expense management tools

often expense management tools are hindered by outdated
payment methods that are no longer efficient or effective.
With modern expense management tools, companies
can issue corporate cards for their employees rather than
requiring them to pay with a personal account and be
reimbursed later.

In addition, companies can provision cards directly into
an employee’s digital wallet so they can start spending
right away, which is especially helpful during business
travel.
Customized programs
Provisioning a tailored card to each employee also
By Todd Pollak eliminates many of the risks inherent in sharing
Marqeta corporate card numbers, including a higher likelihood of
incurring unexpected costs, unauthorized expenses and
or many small businesses, the past few years overspending.
have been extraordinarily difficult. From man-
aging rising expenses due to inflation to prepar- Additionally, employees that borrow a card from a manager
F ing for a possible recession, small business own- or another employee may store the card number to use
ers are balancing many financial considerations. again and again, making it difficult to track expenses and
approve each transaction.
Successful companies need a steady source of income
and cash on hand to manage expenses and make payroll. Businesses can create highly customized card programs
Unfortunately, many businesses struggle with cash flow and set spend controls for each card. For instance, they
issues. According to a US Bank study, 29 percent of small can limit spending to certain employees, certain times,
businesses that failed cited cash flow problems as a factor specific merchants or set amounts, reducing potential
in their failure, and many small businesses are unable to fraud and gaining visibility into spending.
pay vendors, loans, themselves or their employees because
of cash flow issues (see https://bit.ly/42v7sHC). With these set parameters around spending, companies
can have much greater control over their expenses and
Unexpected or untracked expenses employee spending habits.

Oneof the key sources of the problem: unexpected or Real-time visibility
untracked expenses. Many businesses end up in a cash
flow crunch due to unpredicted bills (such as a costly repair Modern expense management tools also provide
or software upgrade) or they overspend each month due accounting teams with real-time visibility into spending
to unrecorded expenses. To avoid these pitfalls, business without waiting until the end of the month to reconcile
owners should have a rigorous process in place to track expense reports. This gives businesses a more accurate
expenses every month and project future expenses that look into spend patterns to help guide budget allocations
are likely to crop up. and a more holistic view of a company’s financial situation.

While efficient expense management is critical for any By using expense management tools, small businesses
business, it can be especially challenging for companies can gain better control over their finances and make
to manage employee spend. With outdated tracking more informed decisions about their spending. This
systems consisting of stale spreadsheets and expense can ultimately help them free up time to focus on other
reports, many businesses don’t have a good sense of what important aspects of managing their business like
employees are spending each month, making it harder for marketing and customer retention, driving growth and
business owners to keep an eye on growing expenses and revenue for their business.
stay ahead of cash flow problems before they can have
dire consequences for the business. Todd Pollak, chief revenue officer at Marqeta, is an analytical sales

Upgraded payment methods growth and global marketing leader. Marqeta is the world's first modern
card issuing platform. Its open API platform allows businesses to instant-
Many small businesses leverage the latest software for ly issue cards and process payments. You can reach Todd at linkedin.
various functions including HR, payroll and CRM, but com/in/todd-pollak-991b6.
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