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Tighter controls on credit card spend

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Hello, 

I wanted to get advice on the best way to monitor our company credit cards. We have an purchase order system set up within the organisation which requires a two person sign off (usually a budget holder and financial controller) but we fear this is measure is being bypassed, by people just using a credit card to make purchases.

What advice could any offer to help us keep tighter controls on the use of the credit card and especially large payments being made on it

Thanks

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01st Nov 2018 17:31

How about sacking folk who don't keep to your rules ?

Or take the credit card off them.

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01st Nov 2018 22:10

Set a transaction limit in their credit card

Also remember that there is a cost (in staff time) to setting up a supplier in yourbaccounts system, raising a po, getting it approved, recieving the invoice, matching it to the po, confirming correct receipt of goods or services, checking supplier bank details, making payment by Bacs.

POs are generally a good thing but niy for low value purchases from one-off suppliers

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to WhichTyler
05th Nov 2018 13:13

Thanks for this. You make a good point about the cost in staff time.

Karla

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By Lisa R
02nd Nov 2018 10:29

I don't know how many people you have to keep track of but I give everyone a printout of their transactions for the month. They then attach their receipts or invoices and take them into the director to get them signed off.
That gives them the chance to discuss any unauthorised transactions and if necessary agreements will be made for any personal purchases to be deducted from their next salary payment.

Thanks (2)
By tom123
to Lisa R
02nd Nov 2018 11:36

My motto is always " if you are happy to explain this purchase to your manager's manager then go ahead"

That tends to work.

What I hate is credit card payments made to normal trade credit accounts..

Generally a policy is best, to give an idea of expectations.

Credit cards / online purchases are only likely to get more common, so best to try and embrace it.

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to Lisa R
02nd Nov 2018 12:11

Lisa R wrote:

That gives them the chance to discuss any unauthorised transactions and if necessary agreements will be made for any personal purchases to be deducted from their next salary payment.

That's sensible - provided that the deduction is in accordance with the employee's employment contract.

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By Lisa R
to Accountant A
02nd Nov 2018 12:41

Yes it is and with both parties (director & employee) present, the amount is checked, signed for and dated.

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to Accountant A
03rd Nov 2018 16:25

Accountant A wrote:

Lisa R wrote:

That gives them the chance to discuss any unauthorised transactions and if necessary agreements will be made for any personal purchases to be deducted from their next salary payment.

That's sensible - provided that the deduction is in accordance with the employee's employment contract.

If they don't, I'd report it to the bobbies as theft.

They've taken money, they demonstrate an intention to retain it.

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to Lisa R
05th Nov 2018 13:12

Hi Lisa,

We have a about 100 - 150 cards to keep track of. They each receive a statement each month which they then match with receipts and is signed off by our Financial Controllers. Thanks for the advice about deductions from salary. We had hoped to find a way where we can control the purchases before it's made and authorised, but I don't think that possible other than setting a transaction limit.

Karla

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By tom123
to Karla Williams
05th Nov 2018 13:14

Have you thought about signing up to something like Concur?

With that quantity of cards, I certainly would.
(I have used it in the past)

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08th Nov 2018 12:24

With that many CC's to deal with a system such as concur is definitely worth looking into

Drop the limits to the lowest useable for the day to day transactions the company expects the card to be used for, then only raise the limit on those that demonstrate a business need for a higher limit

Send the statements to the employees and get them to complete expenses forms and sign off by their manager
Deduct any personal expenses from their Salary

And update your policies (esp your procurement and HR) to reflect the new regime being implemented.
Also I'd only give company credit cards to those who can demonstrate a business need for one, everyone else can use their own and claim back via expenses (people are much more focused when it's their own money!)

As WhichTyler said - there is a cost to administering a PO based system, that is simply not worthwhile for small transactions

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