Small Business Finance News
Small Business Owners Think Controlling Employee Expenses Will Lead To Cost Savings
Written by Jenna Weiner
Small businesses have to trust their employees, but better management of employee expenses can create a more efficient workplace and more productive workforce.
A recent Citizens Financial Group/Mastercard study found 55 percent of small business owners believe better management of employee expenses would reduce costs and benefit their business, while 40 percent said more control over employee spending would give them a better peace of mind.
The study showed 36 percent of small business owners use a cash reimbursement system to enable their employees to pay for day-to-day business expenses, while 32 percent use a company credit or debit card, 29 percent have petty cash funds available, and 21 percent use their own personal credit card.
"With 65 percent of small business owners using either a cash reimbursement system or a petty cash system to reimburse employees for company expenses – and another 31percent handling all expenses themselves," said Stephen Wooters, head of commercial cards for Citizens Financial Group," – the conclusion is obvious: This is not the most efficient way of running a business. So they should take advantage of easy-to-implement technology to provide the spend management solutions they need to succeed."
In addition, 35 percent of small business owners wished they had an easier way to track and control employee expenses, and 28 percent said managing employee expenses is one of the things they hate most about their job.
To help small businesses better manage their employee expenses as well as other financial needs, the Bergen Community College's Small Business Development Center in New Jersey will be hosting a seminar to teach owners about business planning and resource usage.
The Paramus Post reported the event will include lectures on the SBA lending program, how to prepare effective loan proposals and tips on how to navigate the loan process efficiently.
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