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A Qorbis report

Households across the U.S are facing increasing pressure as the cost of living crisis threatens to give way to a full-blown recession. It’s a worrying time for individuals and businesses, but Americans are known for their ingenuity and resilience, so much so that historically, economic downturns are often periods of significant innovation.

One such innovation that’s trending globally is the digitization of business processes, and expenses in particular. Expenses are a notoriously tricky but essential part of most businesses and digitizing them is a way to lower costs, improve cash flow, and importantly, keep workers happy.

We believe every business should have access to better digital expense management, which is why our as-a-service, cloud-based approach is such a game-changer. Our clients benefit from all the advantages of a digital solution but avoid the significant investments that are associated with traditional IT-based versions.

Please feel free to reach out to discuss how we can help you and your staff benefit from the latest in corporate spending and expense management.

Stephen Williams
CEO & Co-Founder of Qorbis
Successfully navigating the challenge of employee expenses

Soaring costs for businesses and individuals are highlighting the shortcomings of traditional pay-and-claim reimbursement models, with a new breed of digital expense management systems stepping in to fill the gap.

Expense management is a notoriously challenging aspect of business operations. Add in the current cost of living crisis and finding a solution that effectively balances the interests of both employer and employee becomes more of a priority than ever.

20%

The predicted increase in the cost of the same basket of groceries compared with 2021

Businesses are facing the fallout from rising costs and supply chain issues, further challenging finance teams to not only balance costs and expenses against profits effectively but also maintain proper records in case of audits or inquiries from tax authorities. All this before considering the month-end shock of a flurry of higher-than-predicted expense claims awaiting reimbursement in times of lower-than-predicted cash flow.

50%

The predicted increase in business travel airfares in 2023 since 2021.

Inflationary pressure has significantly affected costs across the board, with the U.S. rates reaching a 40-year record high in 2023. Food prices, transportation expenses, and healthcare costs are putting a squeeze on the standard of living for many - making lengthy waits to be reimbursed for payments made on behalf of their employer a stress point for even the most conscientious employees.

$697b

The value of the business travel market worldwide, with the United States being the country with the highest rate of business travel spending, with each costing an average of almost $1300.

It’s clear that in these difficult times, it’s more imperative than ever for organizations to find ways to support their workforce that are not only innovative and compassionate - but efficient enough to be cost-effective.

The age of expense reimbursement is over

Gone are the days of traditional reimbursements being an accepted and functional method of expense management.

Seventy-two percent of employees between the ages of 18 and 34 are expected to pay work-related expenses out-of-pocket and submit for reimbursement. For an entry-level employee making $35,000 a year, a $1,000 airline ticket is more than a third of their monthly salary before taxes. That’s a burden no one should be asked to take on. This style of reimbursement also negatively impacts businesses. It it hinders the type of real-time cash flow visibility that is required for effective decision-making and growth.

The problems with a pay-and-claim reimbursement model are numerous:

Digital expense management solutions: A win for employers and employees

Digitization is changing the way we communicate, how we bank - and now, how businesses can effectively manage expenses. Digital money management models with corporate spending cards like those offered by Qorbis offer significant advantages to both employers and employees, including improved cash flow, efficient expense processing, and complete control over spending.

Talk to us today and book a demo to see how Qorbis expense management solutions can benefit both your business and your workforce.

Make managing your team's spending needs a breeze, with our checklist of the must-have features of your business’s corporate card platform.

Looking for the most effective method of controlling company costs? A flexible spend management solution with corporate cards should be your go-to. Instantly issuing cards and managing your company's spending in real-time is just the start though. Ultimately, you should be looking for a solution that offers convenience, control, and perks, all tailored to meet the unique needs of your organization. The end goal? To save time - and money.

SMBs Spend 120 Working Days Per Year on Admin Tasks and Bookkeeping

Accountancy Age

Imagine the time that could be saved by using an efficient card and spend management platform! With a plethora of options available in the market, here’s a guide to choosing the right solution for your business.

Flexible Spending Controls.

One of the key features to seek in a corporate card is the ability to set spending controls. Look for cards that allow you to establish individual spending limits for employees, track expenses in real time, and customize spending categories. This level of control helps prevent overspending, ensures compliance with company policies, and streamlines the expense management process.

Integration with Expense Management Systems.

Seamless integration with expense management systems is essential for efficient tracking, reporting, and reconciliation of corporate expenses. Opt for cards that offer compatibility with popular accounting software or provide dedicated expense management platforms. This integration minimizes manual data entry, enhances accuracy, and saves valuable time for finance teams.

Robust Security Features.

Protecting sensitive financial information and preventing fraudulent transactions are paramount concerns for businesses. Look for corporate cards equipped with advanced security features such as EMV chip technology, tokenization, and real-time fraud monitoring. Additionally, cards that offer liability protection and immediate card replacement in case of loss or theft provide added peace of mind for businesses. FDIC membership and the insurance that is offered on accounts are non-negotiable when choosing a card provider.

Rewards and Benefits Program.

Many corporate cards offer rewards and benefits tailored to business needs, such as travel rewards, and discounts on business services. Evaluate the rewards structure and determine whether it aligns with your company's spending patterns and priorities – beware of complex rewards programs that require your business to build points before they can be redeemed. Not only do they complicate business spending, but they add another layer of admin that most businesses can do without. Additionally, consider added perks like discounted car hire, airport lounge access, and concierge services, which can add value for frequent business travelers.

Global Acceptance and Currency Options.

For businesses with international operations or frequent travel – and in 2024, that’s most of us - it's crucial to choose a corporate card with global acceptance and support for multiple currencies. Ensure that the card is widely accepted by merchants worldwide, for example, Visa or Mastercard, and offers competitive foreign transaction fees to avoid additional costs associated with currency conversion. This may require reading the fine print, as many providers offer low FX rates that are capped at a certain transaction value - negating most of the savings.

Dedicated Customer Support.

Responsive and knowledgeable customer support is essential, especially when dealing with financial matters. Select a card issuer known for excellent customer service, with dedicated support channels for corporate cardholders – ideally, 24/7 and with multi-lingual options. This ensures timely assistance for inquiries, account management, and resolution of any issues that may arise.

Transparent Fee Structure.

Before finalizing a corporate card, carefully review the fee structure to understand all associated costs. Look for cards with transparent fee disclosures, and no hidden charges. Pay attention to fees for late payments, foreign transactions, and additional cardholders to assess the overall cost-effectiveness of the card. The ability to issue unlimited cards is a plus point for businesses as they grow and expand their workforce.

Customizable Reporting and Analytics.

Data is everything. Access to comprehensive reporting tools and analytics empowers businesses to gain insights into spending patterns, identify cost-saving opportunities, and make informed financial decisions. Seek corporate cards that offer customizable reporting dashboards, expense categorization options, and downloadable transaction data for in-depth analysis.

Selecting the right corporate card requires a thorough evaluation of features, benefits, and costs to meet the unique needs of your business. Ultimately, the best option is one that optimizes expense management, enhances financial control, and drives business success.

Qorbis cards deliver all this and more, with low FX rates on any transaction value. Talk to us about how we have your team covered, whenever or wherever they spend.
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