Expense management automation

Your guide to 2020 IRS mileage rate

January 7, 2020
|
6
Min Read

Does your business reimburse employees for mileage? If so, did you know the IRS revises the standard mileage rate each year? 

After a significant increase in the mileage rate for the use of a personal vehicle for business purposes in 2019, this year the rate has slightly decreased. 

Below, we have compiled the latest information on the mileage rate published by the IRS (Internal Revenue Service). Let’s dive in!

The new standard mileage rate for 2020

There have been some significant changes in the mileage rate this year. These changes will be applicable, starting from January 1st, 2020. The new IRS standard mileage rate can be used by taxpayers to calculate the deductible costs for operating a vehicle for business, medical, and charitable purposes.

Some points to be noted are:

  • For the business use of a car, the rate has dropped down to 57.5 cents per mile. (0.5 cents lesser than 2019.)
  • For medical or moving purposes, the rate has changed to 17 cents per mile. (3 cents lower than last year.)
  • For charitable purposes, there has been no change and will remain 14 cents per mile driven.

The standard mileage rate is set based on the annual data compiled for the fixed and variable costs. This includes repairs, maintenance, depreciation, insurance, tires, gas, and oil. For the mileage rate of medical and moving purposes, it is calculated based on just the variable costs.

SUGGESTED READS:

Policy considerations for mileage reimbursement

Non-profit expense reimbursement guidelines and best practices

Volunteer mileage rates and IRS reimbursement guidelines

2020 standard mileage rate under Tax Cuts and Jobs Act

The current law, Tax Cuts and Jobs Act states the following:

  • The miscellaneous itemized deduction for unreimbursed employee business expenses is suspended from 2018 to 2025. 
  • Employees cannot use the standard mileage rate to claim expenses during the period mentioned above. 
  • Taxpayers cannot claim expenses for moving purposes as well. But an exception applies to members of Armed Forces moving to a permanent change of station under military order.

Note:

1. The depreciation portion of the standard mileage rate will be 27 cents per mile. (1 cent more than in 2019.)

2. Under the fix-and-variable-rate (FAVR) plan, the maximum standard automobile cost is $50,400 (the same as 2019) for all automobiles.

SUGGESTED READS:
Your comprehensive guide to IRS mileage reimbursement

Fyle helps you in using Google Maps to track mileage

How to log mileage in under a minute with Fyle?

2020 mileage rate for your personal vehicles

Employees may usually use their vehicles to run office errands. In such cases, the IRS mileage rate is a useful benchmark for calculating mileage expenses to be reimbursed to employees. It also plays a vital role in ensuring policy compliance. 

Maintaining a mileage record can help your team calculate, analyze, and monitor every cent spent on the business. Additionally, employee handbooks and mileage log records can be used as reference points by your finance teams to make well-informed business decisions. It also helps detect and curb any expense fraud.

Are you interested in getting an accurate and reliable mileage calculation for your employee mileage reimbursements? Schedule a demo with Fyle to learn how you can incorporate the latest IRS mileage rate into your policy!

 IRS-mileage-rate-2020
Product update

2019 so far at Fyle - more than 10 new features and other amazing updates! 🚀

June 20, 2019
|
5
Min Read

2019 has been quite a ride at Fyle. We’ve taken huge risks, and they’ve given us great results. Our product has consistently seen fresh updates, ensuring our customers get the best out of Fyle.

Every release in 2019, thus far, have been active steps towards holistically improving expense management. Without further ado, let’s dive in.

Better expense reporting and receipt management 📃


Bulkfyle

With Bulkfyle, users instantly upload multiple receipts, from their computer, Dropbox, or Instafyle (Fyle’s mobile app.)


Differential mileage rates

Admins configure differential rates that automatically change the applicable rate based on the distance logged.


Gmail add-on

Employees directly report expenses from their Chrome browser or Gmail mobile app. Additionally, they also match expenses to corporate cards, add them to existing Projects, and more.


Draft Reports

Employees add expenses on-the-go using the web or mobile app to report expenses without submitting it for approval.

Simpler cash advance management 💵


Advance request policies

Employers control the spending actions of specific employee groups by limiting the number of requests raised, the capping amount, skipping system approvers, and more.


Cross org approvals

Approvers approve advance requests from any of their entities/organizations within Fyle, without any hassle.


Advance request approvals on mobile

We’ve worked hard to reduce the need for accessing Fyle through the web. Now, approvers approve all advance requests from their mobile app, at their convenience, with a single click.

Easier corporate credit card management 💳


Reconciliation from everywhere

Employees reconcile transactions to expenses directly from the mobile app, the Gmail add-on, or the Chrome extension.


Automatic reminders

Finance teams set up automated reminders for employees to match card transactions to reported expenses.

Stronger policy enforcement engine 🚨


An upgraded policy creation module

Employers easily implement complex policies within Fyle. These are for specific employee groups, levels, departments, against expense categories, and more.


Holiday list

Employers configure company holidays and raise flags for expenses created on holidays.


Expense receipts

Finance teams ensure compliance by making receipts mandatory for company-wide expenses, with just a single click.

Advanced travel expense management ✈️


Revamped trip requests

Employees don’t just raise a pre-trip authorization but also transport and stay booking via the web or mobile app.


Trip request policies

Finance teams now control actions of specific employee groups by limiting the number of trip requests raised, capping transport/stay bookings, skipping system approvers, and more.


Personalized trip requests

Finance folks now enable trips for specific employee groups. They also include custom fields in the trip request forms.


Cross org approvals

Approvers approve trip requests along with transport/stay bookings from any of their entities/organizations within Fyle, without any hassle.

Fresh, upgraded Analytics 📊


Analytics

With Fyle, employers now rationalize current spends, forecast high-risk factors, optimize processes, enhance their team’s productivity and more!


Enhanced performance and experience 🙌


Hourly refresh

We’ve reduced the time to acquire actionable data in Analytics from 24 hours to 1 hour!


Access delegation

Admins now directly delegate access to their account using the mobile app.


Dynamic forms

Employers control the display of expense categories based on Project selected.

It’s a wrap! 🎬


If 2019 wasn’t already loaded with enough new features, we’ve added one more this month to ensure a breezy review of your expenses.

Now, all expenses that have incomplete information and need review will appear in a new ‘Draft Expenses’ tab, instead of our otherwise ‘Needs Review’ tab.

You can click on ‘Start review’ to swiftly solve them all, one expense at a time.


If you like what you see, be rest assured we have more!


Travel Expense Management

Travel expense management

Common blunders in small business travel booking

October 20, 2019
|
5
Min Read

Corporate travel can be a stressful affair. When it comes to startups and small businesses, it can be easy to commit mistakes leading to turbulent business trips.

Do you lack a travel policy? Or maybe a travel manager? 

Smaller businesses feel like they can’t or don’t need to invest in things that cost them. Yet the truth is that they can gain a lot from them.

A recent study revealed that,

Businesses spend roughly $1425 for every employee they send on a business trip.

The solutions employed by large enterprises don’t have to be exclusive to them, smaller businesses can also equally (if not greatly) benefit from having those set in place. In this article we look at some of the challenges small businesses face when it comes to travel booking. Additionally, we discuss some effective measures to mitigate these problems. 

Not having a proper travel policy

Before even thinking of business travel, companies should look at making a corporate travel policy. Lack of travel policies opens the way for bad habits like overspending and, even worse, fraudulent practices.

Travel policies streamline the process and make sure your business expenses are regulated. Involve the significant stakeholders and formulate policies that suit your business needs. With a well-crafted policy in place can vastly improve your cost savings, efficiency, and tax compliance. 

Travel policies provide all traveling staff and travel bookers with useful information and essential parameters when making travel arrangements. Implementing a robust travel policy can provide benefits like:

  • Adhering to preferred vendors to save money
  • Comprehensive travel booking procedure
  • Updated travel profiles for your employees
  • All travel needs satisfied under management
  • Special corporate rates for traveling employees

Not planning an itinerary in advance

Business travel without a solid plan or blueprint is asking for trouble. This issue is apparent in smaller businesses where the perception is that it’s not needed until the last minute, or they don’t need one at all.

Building and sharing an itinerary with all relevant personnel ensures a smooth and hassle-free trip. Travel managers, online tools, and mobile apps can help with creating a detailed itinerary for employees.

Pro-tip:

It is essential to have an itinerary, especially in overseas travel, and when traveling to unfamiliar places.

An itinerary outlines everything in your business trip like transit times, who you are meeting, travel reservations, hotel details, booking flights, and more. 

Wrong reservation information

Getting the wrong booking reservation information can ruin the entire trip and incur massive losses for a small business. This situation occurs when there is no transparent process of things like flight, hotels, car rentals, and last minute reservations. Travel booking can get hectic, and this can lead to mistakes like not double-checking dates and tickets.

The travel manager should double-check all of the pertinent information. He/she must also ensure that the involved personnel gets confirmations from third parties (E.g., travel agents). Using online booking tools and travel software can help alleviate issues with incorrect information, delays, and cancellations.

Ignoring petty expenses

Petty expenses may seem harmless in the grand scheme of things. But even small payments made by company travelers like parking fees and baggage handling may slip under the radar. Ignoring these expenses in your travel expense management can lead to a substantial monetary loss over time. These expenses are a prime target for unfaithful employees to exploit.

Allocating a petty cash fund and also making sure employees adhere to the company’s travel and expense policies can solve this. Sometimes, it is confusing for employees to figure out what is considered a small expense, further muddling the process. Using traditional expense reporting is a headache for both employees and the accounts team, as there can be dozens of receipts involved.

Pro-tip:

Deploy an expense management software that allows you to record and track all expenses made during any trip.

Out-of-policy expense claims

Even when a travel and expense policy is in place, employees spending outside the bounds of it. Employees may be unaware of spending limits and don’t realize where they have made a mistake until their reimbursement requests are denied. Lack of communication and awareness is the leading cause of this issue.

Getting employees not to commit this mistake is based on how you project your travel policies to them. This process becomes easier when a dedicated travel manager is present to relay all this information to employees.

Pro-tip:

Making your travel policy available to employees via a mobile phone is also a great way to remind them.

Some expense management solutions are customized to make expense reporting in business travel more comfortable, with features like real-time policy compliance.

Missing or late receipts

Employees need to submit all receipts from expenses incurred during a trip. But that is a messy process. Carrying around physical copies of receipts can very easily be lost or misplaced somewhere.

Having an efficient expense management process relies on people submitting expenses on time. Chasing employees for late or missing receipts won’t solve anything. Hence, it is better to have a comprehensive solution that prevents it from even happening.

One of the best ways is to have all travelers use a mobile app that can record and store all receipts. Having a digital copy of these receipts means your receipt management and reimbursements will be error-free and without delays.

Incorrect/incomplete expense reports

Receipts for reimbursements can only be satisfied if the appropriate expense report contains them. The issue with smaller businesses and startups is that they often do not have a definitive process of expense reporting.

Relaying the problem faced above, receipt mismanagement and other kinds of unverified expenses occupy these reports. The accounts team then gets stuck with all this mess and needs to sort it out manually.

Your business can eliminate such process-related issues with a comprehensive expense reporting software. Additionally, mobile integrated apps that work in tandem with this software help make the process fast and straightforward.

Not assigning a travel manager

Here are some advantages to keeping a designated travel manager to handle your company travel expenses:

  • Even a small business or startup, should have a dedicated travel manager to manage business travel. 
  • Numerous travel-related issues in corporate travel can be reduced or even eliminated with the help of a travel manager.
  • Travel managers ensure that the company gets the best prices with suppliers and manage all travel activities. 
  • A travel manager will make sure the company travel policies are adhered so that business trips become consistent, systemized, and efficient.
  • They also help keep your corporate travel program and employee travel profiles updated.

No visibility into business expenses

Does your accounts team have insights into the average amount spent on different categories during a business trip? 

If your current system has limited expense report insights, then you lack visibility into peculiar expenses. Unless you pull that data into your accounting system, it’s tough to figure out what you are spending on. Cost-saving and optimization cannot happen when there isn't a full picture of travel spends.

What generally solves this is integrating your accounting system with a travel and expense management software. Modern TEM softwares come equipped with multifaceted integration options and significant expense analytics. Now the business not only captures and stores more data than before but can also see which areas can be improved. And all of this happens in a single place rather than jumbled all over.

Not using travel and expense management software

As discussed in the above sections, we have recommended businesses to use a travel and expense management software to solve many issues with corporate travel. A small business or startup doesn’t mean you don’t need a TEM solution.

TEM softwares come with many features to facilitate and optimize a business’s corporate travel management. They are usually online services rather than full-fledged software, which makes them quick and easy to deploy. You can also get additional security as all your information is in the cloud storage.

Some of the standard features include:

Small business travel booking and an automated expense management software

Now let’s take it one step further; all the features outlined above can be automated as well. An automated expense management software takes away one more hurdle, and that’s human intervention. Automated workflows and approvals make expense reporting easy, giving a significant productivity boost to your employees. It also comes equipped with greater visibility into business expenses.

Corporate travel doesn’t need to cause more headaches. Using an automated travel and expense management software like Fyle unlocks the true potential of your business. With exclusive features like pre-trip authorizations, travel integrations, travel-centric system roles, and more. Business travel can now be a breeze.

Schedule a demo today and get the ultimate corporate travel solution!


Travel expense management

A guide to streamline your travel request approval workflow

January 28, 2020
|
5
Min Read

According to The Global Business Travel Association, U.S. employees take an average of 405 million business trips annually. 

That's a lot of travel request forms and financing to coordinate and track. An efficient travel request approval workflow can help streamline this process and simplify your life. The traditional methods of handling this leave room for mistakes, delays and loss of revenue.

Here, you'll learn everything there is to know about creating travel request approval workflows, including the benefits, best practices, and the steps needed to implement one. Let's dive in!

What is a travel request approval workflow?

All employees travelling for work need to fill out a travel request form. This form is then approved and signed-off by supervisors and other members of the finance team.

By completing a travel request form, all of the employee's expenses are covered by the company. After all, the entire purpose of the trip is to conduct company business.

But when discussing company finances, it's essential to have detailed and thorough reporting. Using the workforce to document these details would result in a waste of time and resources. Therefore, modern businesses are proactively shifting towards automation to help address this challenge. 

The downside of not having a travel request approval workflow in place

With so many people involved in the travel request approval process, mistakes happen, and information often gets overlooked. Here are a few of the other downsides to using a traditional system.

Key information doesn't reach the right team members

Too many cooks spoil the broth. Likewise, having too many people involved in the travel request approval process can muddy the waters. This leads to lost information and a significant slow down in the approval process.

Also, Excel sheets and emails are difficult to scale. This can delay the approval process, costing you precious time and money. This is especially true if your employee's travel plans are time-sensitive.

With an automated workflow system, all the relevant parties are alerted to the request in real-time. Some systems can even prioritize requests so that urgent travel plans are approved first. 

Limited control over expenses

To protect your company's finances, you need to have strict control over business and travel expenses. Traditional travel request forms make it difficult to adhere to budgets and effectively implement spending limits.

When several employees are involved in the approval process, and the approved travel costs for a specific trip are unknown, it can create confusion and overspending. A travel request approval workflow simplifies the process by creating a universal standard and guidelines for team members to follow.

Manual processes take longer

The significant difference between a manual travel request approval and an automated workflow system is time. And, in business, time is money. 

Not only does it take countless hours to weed through business expenses and gain approval, but it also allows for human error. It's difficult to track every single expenditure manually, which could cause unauthorised expenses and lost revenue.

Best practices for creating a travel request approval workflow 

Understanding the challenges of not having a travel request approval workflow is only half the battle. Now, you need to create your own system. Here are some things to consider before creating a travel request approval workflow.

Understand what you want to achieve through your travel request approval workflow?

  • Like with any new work policy, before its creation, you need to identify what you want it to achieve through it. 
  • What elements of your current travel request approval process needs improvement? 
  • What's working, and what needs an overhaul? 

Most goals that businesses strive for include improved efficiency, time management, and creating a more transparent process. It might help to give your new workflow policy a name and a detailed purpose. This benefits all employees to stay on the same page and fully understand the process and its required steps. 

Map out the process of your travel request approval workflow

  • To make sure you cover all your bases, map out the travel request approval workflow before putting it into practice. 
  • What steps does a traditional travel request approval go through? 
  • How can you automate this process?
  • Next, include all relevant parties in the planning process. 
  • Identify each individual's specific role and what part they play in executing the new plan.

Choose which line items to include in your travel request approval workflow

One of the essential components of any travel request approval workflow is the specific line items you include. These small details often get overlooked during the manual approval process. Hence, all employees filling out a travel request form are required to detail expected expenditures. 

Common line items to consider in your travel request approval workflow:

  • The purpose of the business trip
  • The location of travel
  • The duration of the business trip
  • The overall cost of the trip (including airfare, rental car, accommodations, meals, and all other expenses)
  • Any additional team members joining them and the corresponding cost

Some travel request forms are more detailed than others. You can ask employees to provide flight and hotel pricing beforehand, as well as a travel itinerary, project details, and receipts

Also, an automated workflow system allows you to add and delete different fields. For example, if the employee is travelling a short distance, you can remove the "airfare" line item for that request. The same goes for hotel accommodations.

Implement a travel request approval workflow and continuously tweak it 

The truth is, you may not get things right the first time – and that's okay! Once you feel it's time to implement your new travel request approval workflow, you'll need:

  • A set of permissions for specific team members. 
  • Determine who needs access to which part of the approval process. 
  • To ensure confidentiality, you can also hide particular data and information. 
  • Allow employees to submit requests and test out the new approval process. 
  • After a few runs, ask team members what's working and what needs improving on.
  • After some weeks, you'll have a more detailed picture of how the system is running. 
  • An automated system will show the average time it takes to approve a request and how long it takes each team member to perform their task. 
  • Further, use this data to tweak and optimise the process.

Implement an effective travel request approval workflow 

If business trips are a big part of your company's success, you need a travel request approval workflow to simplify your life. Not only does an automated system save time and money, but it also reduces the risk of human error and helps employees stay compliant.

Are you ready to welcome the benefits of an automated expense approval workflow? Fyle can help. Schedule a demo today and witness how Fyle can put an end to all your pre-accounting and accounting woes!

automate-travel-expense-approval-workflow


Travel expense management

How to draft a corporate car rental policy?

January 26, 2020
|
3
Min Read

A corporate rental car policy can save your business time and, more importantly, money when it comes to employee car usage. Renting a car offers many benefits over traditional company car arrangements, but it's a balancing act. You've got to maintain a good relationship with the rental agency. This starts with a strict policy to protect both you and your employees.

There are risks to factor in, as well. Some are more obvious than others, like potential car accidents while the car is in your possession. Others may be less predictable, like unexpected parts failure or an act of God. 

This is why a rental car policy is so essential if you rent a company vehicle, consistently. This is insurance designed to protect you and your employees in the event of any unforeseen incidents. It also helps to prevent drivers clocking in mileage over and above the IRS standard, and making various other missteps out on the road.

To that purpose, you're going to want to invest in a comprehensive platform to help you manage this process. In this article, we have elaborated on the guidelines you should consider while drafting your corporate rental car policy and how a TEM software can help you achieve compliance with the same.

How can a TEM software help with a corporate rental car policy

  • A travel and expense management software allows businesses to create short itineraries. This can be done based on an employee's specific parameters.
  • Travelling employees can enter the time and date, as well as their preferred method of travel for a trip. 
  • The application will create plans based on which items need to be reserved for the trip. This encourages accountability because there is a complete record of everything. 
  • Any process that creates transparency is good for keeping everyone in line. There's no confusion or informal records of what was and wasn't in good shape before the trip. There are just facts, and facts are the perfect motivator.
  • That said, you're going to need an effective corporate rental car policy in place if you're going to hold anybody accountable.

Policy guidelines to consider while drafting a corporate rental car policy

In a perfect world, you'd download a company vehicle policy template, fill in a few of the blanks, and be done in five minutes. But corporate trips can present strange and unexpected problems in dozens of different ways. 

Like a traditional company vehicle policy, a corporate car rental policy should include:

  • An outline of which employees qualify to rent vehicles on behalf of the company
  • Requirements for eligibility to drive a rented vehicle
  • Basic rules of conduct when using the vehicle
  • The disciplinary consequences of misusing the vehicle

Your employee use of company vehicle policy governs the rental process, making it a great preventative asset. It's also an effective way to protect yourself from liability if they misuse the vehicle, and it results in a third party injury.

Basic guidelines of a corporate rental car policy

There are some basic guidelines for putting together your company’s car rental policy. Start with an introduction that outlines what the policy will contain. Continue with why the information is essential to the company, the driver and the employee.

Next, add in a full outline of your company's rental car administration. Include your selection process, accident control expenses, and recordkeeping. Make sure also to include grounds for loss of eligibility. 

Following this, outline your driver eligibility requirements. Be thorough with this, including:

  • Driver's license requirements
  • Minimum age
  • Disability guidelines
  • Motor vehicle record (MVR) authorization releases
  • MVR qualification requirements

Prerequisites in your corporate car rental policy

  • Your corporate vehicle selection process comes next. Include guidelines on how to select and order specific vehicles. Give the complete considerations for each choice, based on use and life cycle cost analysis.
  • Include delivery and acceptance procedures, describing the vehicle pickup and drop-off process. You'll also include information on handling issues and discrepancies with the vehicle once picked up.
  • Vehicle use is next and is one of the more extensive parts of most policies. Issues like tobacco use and eating in the vehicle are apparent touchpoints. But it's essential to be thorough here as well.
  • This section will outline your record keeping policy for the vehicle. This also includes how to return the car to the rental agency. Make sure to include contact names and phone numbers. Instruct drivers on acquiring temporary transport in the event of a collision, and to decline collision waivers.
  • You'll also want a full outline of the following:
  1. Fuelling procedures and recommended fuel types
  2. Expense report usage
  3. Traffic violation disclaimers that absolve your business of responsibility
  • Include maintenance policies in case of a breakdown as well as insurance coverage and exclusions. At all times, ensure you include as much relevant information as possible.

How to achieve compliance on your corporate rental car policy

Drafting an effective corporate car rental policy is only one side of the coin. Ensuring compliance with the policy is the other. This is where Fyle can help. 

  • Fyle helps to ensure policy compliance with customizable features. Real-time travel and expense policy management makes policy implementation a breeze. Not only that, but it encourages employee compliance by simplifying the process. 
  • Professional expense report services integrate into a single mobile app for faster reimbursements. Also, it's a trustworthy resource for quick and efficient data management.
  • Real-time analytics into your employee spends means less time and money wasted on duplicate expenses. With a comprehensive corporate rental car policy, you've got everything you need to promote compliance at every step.

Do more with a better corporate rental car policy

Renting a vehicle for corporate use has a lot of benefits, as we've mentioned. What's important is knowing how to keep a tight reign on expenditures, safe usage, and corporate compliance. With an excellent corporate rental car policy in place, you and your company will be well on your way. 

Are you interested in learning more about better business management processes to keep your company on top? Check out some of our other blogs, or get in touch today to find out more about our outstanding expense management software. 

SUGGESTED READS:

Top challenges a travel and expense management software helps solve
Benefits of online receipt management over traditional methods
How to use Fyle as a travel approval software
easy-policy-enforcement



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Corporate Card Reconciliation

Corporate card reconciliation

How to use Fyle as a credit card management system?

November 19, 2019
|
5
Min Read

Does your finance team have a trusted credit card management system to manage all employee corporate credit card expenses effectively? 

Corporate credit card usage is on the rise due to its ease of use. With these cards, employees no longer need to worry about using their own money for business expenses. But with these cards, it becomes all the more critical to effectively track, monitor, and stay on top of things. If ignored, it can rack up extra chores for the entire team. Even worse, it could severely affect your company's bottom-line due to prolonged financial leaks. 

But how does one go about picking the right credit card management system for their business?

In this article, we talk about how Fyle as an expense management software can help your finance team tackle challenges related to credit card management and more. Let's dive in!

Does your business need an effective credit card management system?

Credit cards as a payment method have their own set of pros, but keeping track of spending can be difficult. Even a simple task can become demanding, taking up time and effort from your finance team and employees. Traditional methods for managing credit cards, bring with them a set of challenges that could pose a threat to the financial productivity of your business. Here’s why:

  • When you have multiple cards assigned to multiple employees, keeping track of usage becomes a challenge. 
  • With hundreds of incoming transaction statements, it’s easy to miss out or make entry errors while reconciling. 
  • When your finance team doesn’t have real-time visibility into the employee’s expenses, it can lead to fraud. 
  • Spotless accounting and staying audit-ready becomes challenging, potentially putting the business at stake with the IRS.

SUGGESTED READ:

Best Practices to manage Corporate Credit Cards

Fyle as a credit card management system

Fyle has several features that can help you ease your corporate credit management woes. Our automated solution makes sure all the monotonous routines around expense reporting and corporate card management are taken care of. This spares extra time for your finance team to do more intuitive work and put their skills to better use. This also increases productivity and boosts the morale of your team as well.

Fyle as your credit card management system can help you achieve multiple goals in a short period. Here’s a look at some of them:

  • With Fyle, you can manage multiple cards and cardholders seamlessly.
  • You can track employee spends to ensure no overspending.
  • You can easily validate and reconcile credit card expenses with direct bank feeds.
  • Accounting and staying audit-ready becomes a breeze with a unified dashboard.

Assign and keep track of all your corporate credit cards

Irrespective of whether you’re a small business with few cardholders or a large enterprise with multiple cardholders, Fyle allows you to manage all your corporate credit cards with ease. Once your organization’s card feed is set-up, you can easily assign your company’s credit cards to your employees. Additionally, your finance team can also track and monitor all assigned and unassigned cards. This provides for a wholesome approach to effectively managing business credit card expenses. 

View and track all your corporate credit card expenses

On assigning cards to users, all the expenses incurred will be directly reflected in your Fyle account. The finance team can then view all the payments made using credit cards. They can also see which of the corresponding expenses are yet to be reported. Additionally, the team can filter and view expenses for desired timelines. Lastly, finance folks can also customize and send timely reminders to employees to match their expenses on time.

Get direct feeds from the bank

When multiple employees are assigned to various credit card providers, tracking all the transactions in their bank feed can be a demanding task. Fyle takes care of this problem by syncing all your corporate credit card details with direct bank feeds. By integrating directly with the bank providers, you can expect to get a clean feed in real-time. Additionally, we provide a reliable data flow of all your corporate card expenses. This ensures complete protection over your company’s bottom-line.

Handle credit card reversals

Sometimes a merchant may unintentionally charge twice for a purchase made through the corporate’s credit card. While it may not be a significant loss, it is necessary to make a note of for accounting purposes - duplicated charges can cause confusion and imbalanced records.

At Fyle, we understand finance teams can easily miss transaction reversals, leading to accounting errors. This is why we created our feature that seamlessly matches every expense to its corresponding transactions. 

Pro-tip:

In cases of extra charges, employees need to support their claim with the help of receipts and relevant expense entries.

Ensure seamless accounting

With a better credit card management system in your hand, you can stay prepared for the tax season as well as for audits. Fyle makes sure that your finance team stays ready without rushing or worrying at the last minute. Our expense management software comes loaded with features that can help your finance team tackle the challenges of accounting. Here are few such instances:

  • Finance teams can configure and send automated reminders to employees to match their expenses on time. 
  • With an automated reconciliation process, the finance team can stay tax-ready as well as exercise their skills in a more meaningful way.
  • Fyle can easily integrate and manage a wide array of corporate credit cards. Whether your employees use Mastercard, VISA, Diner's Club, or American Express, it can be directly integrated with the software.

Choose Fyle to effectively manage your corporate credit card expenses

Choosing to handle your corporate credit cards in the old-fashioned way brings numerous challenges tied to it. You may have cards from multiple card providers to suit your needs, but tracking its usage through disparate systems becomes a whole other problem. When you do not own a centralized software to track all cards, identifying assigned cards can be confusing as well. Additionally, when it comes to staying audit-ready, tasks such as reconciliation can become taxing on your finance team.

At Fyle, we understand the challenges that come with managing corporate credit cards for your business. Thus, we have come up with features that will ease the burden on your finance team. This means automating mundane tasks, easy integration, providing direct bank feeds, and matching expenses accurately. With our features available at your disposal, your finance team’s productivity can be optimized and enhanced to help meet business goals.

Want to know more? Schedule a demo with us today to see how Fyle magic works!

credit-card-management-software
Corporate card reconciliation

How to increase the credit limit for your corporate credit card?

October 13, 2019
|
5
Min Read

Is your growing business in need of credit expansion? Does the current limit no longer fit your business needs? Do you require more from your existing corporate credit card?

If you decide the current credit limit does not satisfy all your business needs, you might have to request a credit limit increase. The credit limit is the maximum amount a financial institution will allow you to borrow. It also indicates the amount of power given to the cardholder to make purchases.

The lender’s decision to either reduce or increase your card’s limit depends on how well the card has been utilized. A delay in payment or a maxed-out card can reduce the amount of money assigned to your credit card. But successfully paying bills and maintaining a good history of card usage can help you increase your corporate credit card limit. 

In this article, we will see the factors that influence the increase in your credit limit. We will also discuss the pros and cons of a higher limit. Additionally, we look into some methods you can use to boost your chances.

Let’s start.

Factors that credit card providers use to decide increase in credit limits

When a request for a higher credit limit is placed, the credit card providers evaluate your creditworthiness. A higher limit would mean a larger amount of borrowed money. This is how a credit card issuer would assess if your business can handle a larger responsibility. The more your company looks like a responsible borrower, the greater are your chances.

Let us look at the factors that help the credit card providers to review your request:

  • Credit report

A credit report is a detailed breakdown of the card’s usage. It is a unique credit report provided by a credit bureau. Credit bureaus are an agency that collects financial details about the company and its paying habits. This is done to help the lending institution and credit card issuer to make a lending decision.

The report provided by the agency includes the company’s business background and financial information. It also includes credit scores and the company’s borrowing and paying history.

  • Credit score

Lenders and creditors require means to identify whether your business can repay the borrowed money or not. This is where credit scores come in. 

A business credit score generally ranges from 0-100. Your business scores provide an impression to the lender if bills can be paid on time. The higher the score, the better the impression. A higher rating can be maintained by paying bills on time and keeping debt low over a period of time.

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Pros and cons to consider before increasing credit limit

Increasing the credit limit helps a company gain access to more capital. But a more substantial credit card limit can create higher debt risk. The following pros and cons of a higher credit limit should be taken into consideration.

Pros of an increased credit limit

  • More purchasing power

A higher credit limit can undoubtedly give you access to a bigger capital. This can help your business to make more significant purchases. A corporate credit card with a higher limit can also increase the frequency of purchases.

  • Acts as an emergency spending cushion

Sometimes, you might have to make a purchase that is more than your typical purchasing capacity. A higher credit limit can provide your company with an extra helping hand to make such emergency expenses. Higher credit helps you with resources that you can’t pay off, immediately.

  • It can increase credit score

Increasing the credit limit can naturally increase the credit score for your business. This is because the card utilization ratio also decreases. A higher utilization ratio can indicate the credit card bills are not paid in time, and there’s overspending.

Pro-tip:

The card utilization ratio is expressed in percentage. It can be obtained by dividing your total credit balance by the available credit limit.

  • Increase in rewards

If you consistently pay off your balance and on time, it will help you to earn more rewards. Making full use of the corporate credit card and paying on time won’t cost you anything but it can help you reap rewards. The rewards you cash in can help you reduce expenses on hotels, airfare, supplies, etc.

 Cons of an increased credit limit

  • Bigger risk of increasing debt

More expenses mean more bills to pay. Getting a higher credit limit can help you make more expensive purchases. But bigger pending bills can only increase your debts towards the lender. If your company is unable to keep with the large expenses, it can possibly drive the business towards losses.

  • Higher interest 

A higher lending price means the interest value is higher, as well. Any pending payment from the previous billing cycle is charged with interest until repaid. If you habitually carry balances in each period, the interest can rack up. This can cause you to pay more in addition to your principal amount.

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3 ways to boost your chances to increase your credit limit

The decision to increase the card’s credit limit lies in the hand of the credit card providers. But you can increase the probability of getting it approved. Maximizing credit score, being financially responsible, and carefully monitoring your card activity can boost your chances.

Here’s how you can raise your chances to get approved:

1.Work on your credit score

We know lenders look at the corporate credit card score to make business decisions. Credit card scores are an impression of your payment history and debt level. A low credit score can instantly put them off and make your business look unreliable. Making on-time payments and avoiding long-term payment of debts can affect your credit score. 

Maintaining a number of accounts can be used as an added advantage to work on your credit score. Having multiple lines of credit with a perfect history of payments can project that your company is serious about its finances. Thus, the credit card provider also develops a sense of trust after looking at your good credit score.

2. Pay off your debt

Having an outstanding balance is seen as a risk for the credit card provider. This stands, even if you plan to avoid interest charges by making the payment each month. This causes a concern for the creditors as this exposes them to losses.

Therefore it is wise to clear off debts before applying for a limit increase. A credit report reflects all the company’s debt and outstanding credit card balances before the cycle closes. Even if your company is unable to pay off everything in full, eliminate debt as much as possible before the statement cycle closes. The credit report will have less to show even if there’s a pending debt. This will increase your chances of getting approval for a higher credit limit.

3. Regularly check your credit report

A credit report plays a central role in the lender’s decision as well as for your business’s growth prospects. A credit report dictates the approval or denial, terms of repayment, interest, and terms of debt financing. Ensure you handle this process with care, as a bad credit report can reflect poorly on your company. 

Pro-tip:

1. Take time to check your credit report and see if there’s any room for improvement. 

2. It is advisable to obtain a credit report from the credit card bureau every 6 months. 

3. In case there are any errors, inaccuracies, or outdated information, contact the agency to make the appropriate changes.

4. Mistakes can happen with credit card bureaus, as well. Monitoring your credit report regularly can help to maintain the company’s reputation and keep it in good standing. 

How can an expense management software help increase your credit limit?

Increasing the credit limit for your corporate credit card revolves around effectively managing your card history. By now, we have already established how missing bill payments and late payments can put a dent on your credit history. We have also seen how it reduces your chances of getting a hold on higher-powered credit cards.

Additionally, juggling multiple cards can prove to be a challenge. As your company continues to grow, not only will you have to manage numerous cards but also have to take care of bill payments. Making timely payments, as discussed, thus becomes a deciding factor for your credit report and score impression.

This is where an automated expense management software comes into play. Take the help of an expense management software for seamless credit card management and expense reporting. Additionally, an automated software like Fyle comes with features custom-designed keeping the modern employees and finance teams in mind. Our mission is to help you easily manage multiple cards so that you can focus on improving your overall expense reporting processes.

Schedule a demo with Fyle today to learn how you can seamlessly manage and streamline your expense management processes with ease!

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