We all know that tax is complicated, and finding the right advice online, or anywhere, for that matter, can also be difficult. This applies to businesses, sole traders, and the self-employed. Big businesses can employ expert accountants to deal with such issues, but the sole traders and the self-employed don’t generally have that safety net. The UK government offers extensive guidance on this but it can be a lot to take in. And it’s not just tax that causes problems, it can be expenses and lots of other financial issues in general.
Is the answer to a lot of these problems already staring us in the face?
Expenses are the bugbear for big business
Rather than knowing what can and can’t be used against tax for a big business, one of the biggest problems is keeping tabs on employees, and their expenditures. In days gone by, whole departments had to be created to keep tabs on what money was being spent by which employees using business credit cards. But like with everything, technology advances, and things change. Now big businesses can monitor what’s being spent, and even put monthly allowances on accounts.
This has now got even easier with the advancements in technology brought about by the virtual credit card. Anybody reading this has probably stumbled across this technology recently without even realising it. Depending on your chosen bank, or credit card, you’ve probably already seen an itemised bill in your mobile app telling you how much you’ve spent, and where you spent it.
More control
When you buy an item, as you leave the shop your phone now pings and alerts you to the transaction. Immediately you can check and see if the shop has charged you the correct amount, something that is vitally important. That’s especially so when you’re far away from home – in the past, it would have been more difficult to check your bank account on the go, especially while on holiday in a foreign country, for example.
That sort of technology is useful to individuals but it can also allow big businesses to keep closer tabs on their employees’ expenses. Even in big business, it’s vital for keeping costs down. Finding a card company that offers businesses a good bulk deal is essential, as the cost will have to be factored into the price of the overall package.
There are companies and websites that can help businesses to find the best virtual credit cards. Moss are experts in corporate cards, whether they’re debit or credit cards. They provide the key information on a range of different options, which is vital: corporate businesses need to get the right card to ensure they can track the spending of their employees, for a number of reasons.
The technology available from virtual credit cards now isn’t just used to monitor purchases. It is also a handy tool to have for accounting. By breaking down what is being spent where and on what, a virtual credit card can also help with separating expenses that are tax deductible, from expenses that aren’t tax deductible. This is a great advancement in keeping on top of monthly accounting.
Better planning
Using the technology available on virtual credit cards also allows companies to set more accurate allowances. Instead of just allowing for a bulk figure, companies can now break down allowances for particular practices. For example, a certain amount can be set aside for fuel or travel, or a certain amount for corporate dinners.
As technology now allows companies to immediately see who spends what on what, it means they can reallocate financial resources to where they are more suitable. So if one employee spends more on hotels and another spends a lot on corporate dinners, instead of giving two employees the same amount for both (as would have happened in years gone by), the money can be better allocated to who needs it most for what.
Impossible to lose
Another huge benefit of the virtual credit card is that it is impossible to lose. This makes virtual credit cards far less of a security risk than physical ones. The technology is advanced, so your card is as secure as any other financial account. And if you do feel your account has in any way been compromised, you have the option to deactivate your card on your mobile app.
Virtual credit cards are a great addition to financial technology and are already helping business streamline their expense management.
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