Prepaid bank cards can be an incredibly useful tool for small business owners. This is particularly true for those owners just starting out with a new business venture. Bank prepaid cards can make it easier to manage business finances and all other areas of operations. Still, many business owners are unaware of these significant advantages. Learn how using bank prepaid cards for business can benefit your organization below.
Better Financial Protection
Using a bank prepaid card can afford better financial protections for small businesses like yours. With a bank prepaid card, you are using a financial product that is FDIC insured. This will protect you in the event that an employee de-frauds your business. Or, it can protect your business from other business scams. In addition, bank prepaid cards also afford additional identity theft protections. This is particularly important for a small business owner – a demographic that is frequently targeted for identify fraud. If you want to protect yourself and your business from potential fraud of all types, you should consider getting a prepaid card.
No Account Necessary
Using a prepaid card from a bank allows you to manage business finances without a dedicated business checking account. This is a serious advantage for small business owners just starting out, one that is not afforded with bridging loans. Opening a business bank account requires applying for an EIN. If you want to avoid the process of formerly incorporating your business for a while, you can still conduct regular business operations with a dedicated prepaid bank card. You can load all your business capital onto these prepaid cards. Then, you can use only those cards for all business operations. That way, you keep your business finances separate from your personal finances. If you are unable to open a business bank account right away, opening a prepaid bank card is the best solution.
Notifications & Alerts
The best prepaid bank cards offer notifications and alerts for users. This helps new small business owners stay on top of expense tracking processes. These bank alerts keep you up-to-date on all business spending on every prepaid card you own. If you have employees and use prepaid cards to cover employee expenses, this is particularly beneficial. You can track employee spending to ensure that no business capital is being wasted on personal items or frivolous products. When the month ends, you can print up a summary of bank account alerts to ensure proper expense tracking for bank account reconciliation purposes.This is an advantage that is not possible when you use cash instead of bank prepaid cards.
Bank prepaid cards also include features that allow business owners to set spending limits, no matter how much money is loaded onto the card. You can choose to set daily spending limits to better manage cash flow for business as a whole. Or, you can choose to set spending limits for individual prepaid cards given to specific employees. That way, you never have to worry about your business being taken to the cleaners by an unsavory employee. These spending limits can be set to as much as $10,000. So, you never have to worry about not having enough financial leverage to cover large business expenses with your prepaid cards. For small business owners just familiarizing themselves with both cash flow management strategies and their employees’ levels of integrity, this is considerably advantageous.
With corporate bank prepaid cards, business owners can benefit from automated expense reporting features. This simplifies your day-to-day workload and lessens the administrative tasks you have to manage on your own. Corporate prepaid bank cards include automatic reporting features that will generate expense reports with a single click. Many of the top corporate prepaid cards also integrate with the best accounting software, like QuickBooks and similar. That way, you can export transaction history data directly into your existing accounting tools to streamline your workflow for maximum efficiency. These time saving features are a huge advantage for any business owner’s administrative workflow.