Keeping Employees Honest When Using Corporate Credit


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Home \| Business Keeping Employees Honest When Using Corporate Credit By: Robert Bain, Posted on: 2008-02-23 Any business owner can tell you that it is difficult to get corporate credit up and running. Therefore it is essential that you do your best to keep things on track once you get it all set up. One of those areas you need to give special attention to has to do with your employees. Many of them may need to access corporate credit either occasionally or on a regular basis. Some companies just don't have good policies in place so employees really misuse the corporate credit by default. Those things that fall into a gray area often get turned in when they aren't eligible. For example they may turn in charges for drinks they had at the bar before a business dinner. This isn't a necessity so you may only want to cover the cost of the dinner and the drinks are their responsibility. The amount of access that some of your employees have to corporate credit will vary. Some will only be able to use a credit card for dinners with clients and to buy goodies for an in house meeting. Others will be traveling so they will need to rent cars, pay for flights, cover their meals, and pay for hotel rooms. All of these types of expenses can easily be verified. Of course an employee can still use your business credit card for a dinner out with their spouse and claim it as business related. This is why you should have in house reviews of their expense reports. In addition to the receipt you want to know what the expense was for. Who where they with and what was the purpose of the meeting taking place? Some employers are afraid to be so tight when it comes to corporate credit. They fear it will give employees the impression that they aren't trusted. Yet if you just explain it from an accounting point of view they will understand it. They should realize that your business can be audited by the IRS at any time and you need such documentation for your own records. For many businesses, it simply isn't realistic to prohibit the access to corporate credit. Yet you really need to know who is using it and why. Each credit card charge should be carefully reviewed. You can have cards handed out to employees that are on one account but with different card numbers. Make sure the credit card company is willing to provide you with an itemized statement for each of those cards. A great deal of money is lost annually due to employees not being honest with the use of corporate credit. The best way to handle it is to be prepared for it. Make sure you have policies and procedures in place that will prevent it from happening. You want to be very consistent with these practices. Of course honest mistakes will occur from time to time. Give the employee the chance to explain what took place. For example they may have given the business credit card number instead of their personal one because they are so accustomed to traveling for business. You will have to review these instances on a case by case basis. Article Source: http://www.allthebestarticles.com Robert Bain - veteran business owner shares his thoughts on building corporate credit, even if you have bad personal credit. Visit href="http://www.corporatecreditpower.com">CorporateCreditPower.com to read more. Please Rate this Article Not yet Rated Click the XML Icon Above to Receive Business Articles Via RSS! Additional Articles From - Home \| Business Online Tutor for Student Education - By : tutortheglobe Atlanta’s Real Estate Supports HOT-lanta nickname - By : Roberto Garabelli LED market boom not before 2013 - By : chinatopwin.com The Style and Benefits of Modern Metal Buildings - By : Audrey Cross Choosing A Great Flower Delivery Service - By : Bobbie McKee Purchasing Management Software And Saving Money - By : George Purdy Guidelines To Free Internet Advertising And Website Promotion - By : Elias Maseko Increase Comfort With Ergonomic Furniture - By : Fabian Toulouse Is Your Internet Business Really A Business? - By : John Lenaghan The Consequences of Not Having Auto Insurance - By : Mich Taylor	Attention Writers! Articles Needed! Sign Up for a free account or learn more. Featured Author Eileen McDargh Members Area Submit Articles Member Login Submission Guidelines Publishers/Webmasters Top Authors Most Popular Articles Ezine Notifications Article RSS Feeds Link to Us Privacy Policy Terms of Service Featured Websites Wedding Party Shoes Sports and Concert Tickets Backyard Bird Guide Questions? Contact Us Vote For All The Best Articles.com at Best Directory TopSiteList Sponsored by Fitness Inform Vote For All The Best Articles.com at Top Article Directory List Top Sites

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