Do you ever have a need to have your employee be able to purchase things for you and you don’t want to have to go through the reimbursement process?
Well, the solution that many people use is to set up a separate checking account and get a debit card on it and give that to their employees to use and tell them they’re only supposed to use it for certain things or up to a certain dollar amount. Unfortunately, those rules just stop after you stopped saying that employees can do whatever they want to with that debit card. And you really don’t have much recourse.
They can empty that whole bank account out whether you want them to or not. So let’s not do that, let’s talk about a better way to help out and handle employee spending without having loads of checking accounts one for every employee.
In the case with a Neobank, a Neobank is kind of a, we’ll say a new fangled bank that allows for much more technology and the process, and a lot easier relationships in the traditional big box bank. Giving your employees cash or credit cards to purchase things is just a recipe for disaster. So Neobanks will allow you to set up physical or virtual credit cards that can be one-time use or an ongoing use that you can give to an employee, you can set a limit on that card.
So for example, if you only want your employees to pay for company pizza on this card, you can set a limit and say no more than $50 a day or whatever the amount you want. And if that employee leaves, you can freeze the account, freeze the cards immediately, and not let them spend anything. Or you can even delete that account and it will not be available for use anymore.
So these offer some great advantages to control spending. You can also allow employees to use them one time. If you need somebody to make a one-time purchase for you, maybe you leave their account locked all the time, but if you want them to go make a special emergency run for you, you go and unlock the card and set the limit of what you think they ought to be spending that day, and that will be it. Then you just lock up the card when it’s time, and when I say lock, I don’t mean take the physical card and put it in the safe, I mean log in the website or the app. And it’s very simple, you just click the button.
So this could solve a lot of problems that traditional banks and timelines have. They’ve made that process very hard and leave you open for a lot of problems. So if you would like to use something like what we’ve described, I’d be happy to set you up with an account at Relay Financial, that’s what we use. That’s our favorite Neobank. And you will have access to those cards, it’s everything set up. You can also easily set up multiple accounts there if you want to do some savings for taxes or pay off some debt or set aside money, it’s super simple to set up multiple accounts there and transfer between them.
So hope this helps you, I look forward to helping you make your employee purchasing a whole lot easier and safer for you. I’m Donna Bordeaux from CampgroundAccounting.com. Please follow us on Facebook and Instagram. Make sure to check out our Blog and our website from the link below. Subscribe to YouTube Channel and hit the bell to be notified when we post. To contact me, email me at email@example.com.
Donna Bordeaux, CPA with Campground Accounting
What happens when you send two CPAs out into the relaxing outdoors to camp? You get CampgroundAccounting.com. Donna and Chad have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They camp and travel across the country every chance they get, so it’s just a natural fit that they focus their CPA skills on helping campground owners throughout the USA grow their businesses and minimize the impact of taxes. They understand the key performance indicators and specialized issues that face RV park owners every day.