How Much Is Corporate Credit Card Misuse Costing Your Company?

For construction companies operating on razor-thin margins, every dollar counts. Unfortunately, it is not uncommon for small to medium-sized construction companies to be beset by corporate credit card misuse.  And while the financial drain of small purchases here and there might not seem like much, over time those costs add up.  Additionally, there are various other ways that personal expenses disguised as business expenses might be impacting your bottom line.

​

Hidden Ways Corporate Card Misuse is Costing Your Business

​

While there is an obvious cost to the company when the crew manager uses the company card to buy his morning coffee at the gas station, purchases like that also incur hidden costs that are not always as noticeable. Here are three hidden costs of corporate card misuse.

​

Administrative Burden

​

Unauthorized purchases create a nightmare of paperwork for accounting and administrative teams. For every suspicious transaction, someone must initiate an investigation, verify receipts, correct errors, and file a report. All that takes time - time paid for by the company.  Time that could be spent on more profitable tasks that actually help the business grow.

​

Inaccurate Budgeting

​

Personal expenses on the corporate card are a sure-fire way to overspend on a project budget - and create problems for future project budgets.  Project managers without proper visibility into where the budget is going will not be able to plan properly, which will affect project bidding, pricing, and ultimately could cause a decline in sales.

​

Increased Audit Risk

​

Misuse of company funds - even on a credit card - is actually a type of fraud.  If the IRS takes notice of multiple or recurring unexplained expenses, it could audit your business.  Audits take a lot of time and energy on the part of the company, and often result in hefty fines or increased taxes.

​

Stop Corporate Card Misuse - With Outpave

​

The best way to deal with the misuse of company credit cards is to stop it before the money leaves the account. Outpave gives you the controls you need to stop the spend and save money on the front end.

​

Outpave gives you control over your finances.

​

• Assign cards to specific merchants.
• Set daily spending limits for individual cards.
• Assign cards to expense categories.
• Instantly approve or deny the expense.

‍

Get Started Today

If you’re ready to regain control over your company's finances, contact our team to schedule a product demo today. Don’t forget to subscribe to our social channels for more information about how our platform can improve your expense management.

‍