Business expense cards

Frequently asked questions

What is a company expense card?+

Expense cards are payment cards issued to employees by an organisation to cover business-related expenses. These expenses can include travel, meals, office supplies, client entertainment, and other operational costs necessary for conducting business. The card simplifies expense management by allowing employees to charge expenses directly to the company account or appropriate departmental balance, reducing the need for out-of-pocket spending and subsequent reimbursement processes. Expense cards are also known as corporate cards and come with various controls and features to ensure proper usage. With Equals, companies can set individual spending limits, restrict types of purchases, and easily monitor transactions to prevent misuse. Real-time transaction data and detailed reporting features help streamline accounting and auditing processes, providing a clear overview of company spending. The use of expense cards also aids in improving cash flow management and enhancing financial transparency. By consolidating expenses into a single payment method, companies can better track and analyse spending patterns, leading to more informed budgeting and financial decision-making.

What qualifies as an expense?+

A business expense is any cost incurred during the ordinary course of business that is essential and directly related to operating and generating income. These expenses play a crucial role in maintaining daily operations and are usually tax-deductible, thereby reducing the business's taxable income. Qualifying business expenses cover a broad range of costs. Operating expenses, such as rent, utilities, office supplies, and salaries, are fundamental for running the business. Travel and entertainment costs related to business travel, lodging, meals, and client entertainment are also included. Marketing and advertising expenditures, which encompass promotional activities and public relations, qualify as well. For spending to qualify as a business expense, the specific criteria will depend on the organisation's expense policy and can vary from business to business. However, generally, qualifying business transactions must be ordinary, necessary, and directly connected to the business's activities. Proper documentation and record-keeping are essential to validate these expenses for tax purposes.

How does an expense account work?+

An expense account is a financial tool used by businesses to track and manage expenditures related to their operations. It operates by allowing employees to charge work-related expenses directly to the company, eliminating the need for personal out-of-pocket payments followed by reimbursement processes. When an employee incurs a business expense, such as for travel, meals, or supplies, they use a company-issued expense card, such as an Equals card. The expense account records these transactions, with each expense documented with details, optional attachments, and annotations, like date, amount, purpose, and any relevant receipts or invoices. This system ensures compliance with company policies, prevents overspending, streamlines expense management, improves cash flow oversight, and aids in budgeting and tax preparation by providing a clear and organised record of all business-related expenditures.