CORPORATE CREDIT CARDS: Pros, Cons & Cautions Credit cards can help companies streamline their purchasing and spending, but they don’t come without a few drawbacks. Consider these pros, cons and cautions to make sure you’re maximizing the benefits and minimizing the risks of corporate credit card usage. PROS • Cuts down on paperwork and processing (expense reports and reimbursements) • Earn benefits (like rewards or cash back) • Helps manage cash flow • Increased convenience and transparency • Allows for close monitoring of employee spending • Manage small purchases without using cash • Potential for personal charges on company cards • Unnecessary business purchases due to spending limits set too high • Lack of fraud coverage and purchase protection depending on the credit card • High finance charges if payments are not made on time CONS RKLcpa.com CAUTIONS • Be judicious when distributing cards • Ensure fraud protocols, like card freezes, are available • Implement sound policies that card holders must acknowledge • Devise a policy to handle rewards earned • Consider using a more formal payment process to large vendors (purchase order, invoices, appropriate approvals) for documentation purposes