Corporate credit extended to employees is often essential for the operations of your business. You need to be able to trust those that work for you to use it correctly. While there will be some honest mistakes from time to time, there can also be those that are using it for their own benefit.

Some companies just don't have good policies in place so employees really misuse the corporate credit by default. Those things that fall into a gray area often get turned in when they aren't eligible. For example they may turn in charges for drinks they had at the bar before a business dinner. This isn't a necessity so you may only want to cover the cost of the dinner and the drinks are their responsibility.

Not everyone should need to have access to corporate credit, and you want to limit it where you can. It is going to be easier to track expenses if you only have a small group of people making them. It will really depend on the type of business that you offer to people though. Sometimes you just can't help but allowing a large number of people to access it.

Of course an employee can still use your business credit card for a dinner out with their spouse and claim it as business related. This is why you should have in house reviews of their expense reports. In addition to the receipt you want to know what the expense was for. Who where they with and what was the purpose of the meeting taking place?

Some employers are afraid to be so tight when it comes to corporate credit. They fear it will give employees the impression that they aren't trusted. Yet if you just explain it from an accounting point of view they will understand it. They should realize that your business can be audited by the IRS at any time and you need such documentation for your own records.

This is a much better scenario than finding out a large amount of money has been frivolously charged to such accounts. If you aren't prepared for it financial it can be devasting for the overall effect it will have on your corporate credit. You also can't expect your employees to just pay such expenses out of their own pocket. Even if you will reimburse them for them later many just can't handle that type of financial burden.

It seems like access to corporate credit is something that employees need more and more. This is due to the large scale of businesses taking on customers from all over the world and not just locally anymore. For some employees, they travel out of town for business several times each month. They need a way to be able to pay for the related expenses they will incur.

If an employee should provide you with business related expenses that don't make sense, they need to be addressed about it. They may have accidentally turned in one of their own receipts. It can be hard at times for a person to keep their personal and business charges separate. Make sure you allow them the opportunity to resolve the situation if you feel it may have been an honest error.