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30% of employees can’t be trusted with the company card, say SMBs
Just under a third of small-business employers say they can’t trust workers with the corporate credit card, according to a new report.
30% of employees can’t be trusted with the company card, say SMBs
Just under a third of small-business employers say they can’t trust workers with the corporate credit card, according to a new report.
The rise of working from home has added new emphasis to the need for trust when it comes to corporate credit cards and expense reports.
However, a new study by DiviPay found that 30 per cent of business owners don’t trust employees with a corporate card or expense allowances.
DiviPay CEO Daniel Kniaz said it was concerning to see such a lack of trust between employers and employees, especially during a time when hybrid and remote working has become increasingly prevalent.
“It suggests many smaller businesses lack a system that provides them with adequate visibility over expenses and how they’re being used by employees,” he said.
According to Mr Kniaz, this distrust is rooted in a lack of transparency.
He said that remote working has likely exacerbated the need for increased visibility over expenses and corporate card use.
“Without this visibility and trust, business owners are likely spending hours rectifying expenses and risking profit losses,” he warned.
Interestingly, the study found that this lack of trust increased as business size decreased.
“The lack of trust was higher among business owners with only a couple of staff, whose businesses are more financially fragile,” DiviPay suggested.
DiviPay found that approximately 42 per cent of businesses with up to three employees don’t trust those employees with a company credit card or expenses.
In contrast, companies with between 16 and 50 employees were more willing to extend that trust at 21 per cent. Businesses with between 51 and 200 employees rated slightly higher at 23 per cent.
The report also claimed that as much as 30 per cent of employees made a personal purchase on a corporate credit card.
According to surveyed business owners, some of these purchases were accidental, but others were made and knowingly claimed as a business expense.
With the ongoing uncertainty around smaller businesses during the pandemic and recent lockdowns, Mr Kniaz said it was alarming that some employees are guilty of making personal purchases and allocating them as business expenses.
“This misuse of funds can lead to liability issues for business owners and land their company in hot water,” he said.
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