The role of the finance team in digital transformation
The finance team is crucial in this concerted effort to digitalise all workflows and deliver a culture of data-driven innovation. Not only does the finance team hold critical insights into company performance and market potential, but they also account for a significant proportion of the employee experience and therefore play a role in their productivity.
Nowadays, most teams at companies have outgoings. The HR team might be in charge of buying merchandise. The marketing team pays for online tools and advertising. And the office manager needs to buy food and plants for the office.
The way of working detailed above is increasingly common. For example, marketing teams currently use dozens of tools to do their jobs, and the overall spend number increases each year. According to a study
by WARC, spending on marketing technology tools has increased from $34.3 billion in 2017 to $121 billion in 2020,
While some of those tools might require invoices, most will be SaaS products, charging a small monthly amount against a debit card.
The issue with traditional company payment methods
Some companies manage this process by not really managing it. By sharing a debit or credit card between various people or expecting people to use their own money and then get reimbursements.
There are multiple flaws with either approach. Flaws that have a whole host of unintended consequences. For companies sharing the same card with various people, the first obvious issue is the security risks. One would hope that these details are shared in the safest possible way, such as encryption or by sharing in person and keeping any notes under lock and key.
But judging by the fact that the most popular password is 123456, this hope’s probably misguided.
Anecdotally our clients tell us how they used to email their card details to each other, send pictures of them over unencrypted messaging services, and then keep all the details written on a notebook they carried around.
Another issue relates to the employee experience. It’s unnerving at best to have to use someone else’s name and card to pay for something; however, that’s the least of the problems. As banks react to increasing cyber fraud, extra security measures have been implemented. Strong Customer Authentication (SCA) in the EU, for example. Added to this is the trend of working from home; it’s less than straightforward for someone to pay for something using someone else’s card.
The other traditional solution of paying upfront, then dealing with expense management is complicated too. Reimbursements include a lot of drawbacks that will hurt your company, such as lack of visibility and control and decreased employee productivity and satisfaction.
By choosing the right company cards for your business, you can put lack of clarity behind you.
How virtual company cards solve the problem
Offering virtual company cards to your employees is a great, uncomplicated way to digitise the crucial workflows that enhance productivity, satisfaction, security, and control.
Virtual business cards are the next big thing. And because they’re not actually linked to your business bank accounts, nobody gets to know your details, and you’re not exposing your company’s account to online scams and fraud.
At Payhawk, our virtual corporate cards are corporate Visa cards that allow CFOs and finance teams can stay on top of spending allocations and limits and access real-time information on how money is spent across the organisation. This visibility also makes reconciling accounts a lot easier and faster, especially at crucial times such as month’s end and at the end of the financial year.
Virtual company cards also excel in increasing ease of use and satisfaction for the end-user. While, for the finance team, the back-end process becomes a lot easier, with decreased time spent in the admin around reimbursement. It also reduces the chances of mistakes and fraudulent reimbursement as charges are more visible.
Companies can give their users cards instantly via the app, delivering enhanced productivity and avoiding admin traps. And offering straightforward card management all in one place from day one.
Lastly, as companies seek to improve their sustainability credentials, virtual cards create a great way to reduce plastic and send a positive message across the company.
Download the ebook
Company cards vs. cash: How to build your cashless business to learn more about digital transformation in your organisation.
Or if you’re ready to make the change? Book a demo now, and find out about Payhawk’s virtual company cards and how they could help you accelerate digital transformation in your business.