❯ The availability of funds:
Cash advances are usually unsuitable for longer projects, due to the connected risks and handling of foreign currencies, so credit cards are often used to evade these.
But credit cards have their limits: in case of several unforeseen expenses, the credit limit can easily be reached. Trying to renegotiate these with the bank and to do this time so that employees on location do not lose time, can be a painful experience.
❯ Timely insight into expenses:
To prevent dramatic budget overruns, it is vital to keep an overview of the project expenses. As credit card statements only come in once a month, they cannot offer the close-knit inspection that finance managers expect.
As the travelling team has other things to do than daily cost reporting, the full insight only becomes available upon return of the team. That is when they are not flying out to their next project.
❯ Correct allocation of costs:
The financial department needs receipts and proper justifications of the expenses for the correct allocation of costs. As employees travel they can easily lose receipts or lose track of the expense reasons which makes it difficult to check and allocate to the right cost types.
When the expenditures have to be invoiced to the client, this then becomes a challenge and uncertainty on spend may also influence future project quotes and thus competitiveness.
Does this sound familiar? Then you might have been looking for options to solve the dilemmas of project costs and employee-friendly expenses. Many companies replace cash with credit cards while the issue of budgeting and control remains. Lack of real-time insight may turn many a promising project into a loss-giving venture.