Petty-cash a great proving ground for P-cards
When beginning a procurement card (p-card) programme initially use the card only for petty-cash purchases as it is easy to set up and is a quick way for clients to see how it works and how they can benefit from the programme, advises Anita Carolus, Nedbank Corporate Card National Sales Manager, in this month’s SmartProcurement.
“It is the simplest and most effective way to begin a p-card programme and clients can easily extend the use of the card as they deem necessary.”
Carolus has observed that clients with successful and wide-ranging p-card programmes often began the programme by first replacing their petty cash.
The normal petty-cash process is known to be a tedious and time-consuming manual process, requiring authorisation, administration with regard to maintaining the float and keeping track of advancements and the reimbursement of expenses.
Setting up the p-card to pay for petty-cash transactions streamlines this process and automates some of the steps, explains Carolus.
The p-card is given to employees making low-value, high-volume purchases. For greater convenience the card can be prefunded – ensuring that the cardholder has the necessary funds available at any given time (no more and no less).
Prefunding the card reduces the risk that employees will run amok with the card and the added controls that can be implemented ensure that the cardholder spends at the correct suppliers. Prefunded cards can be replenished weekly, biweekly or monthly depending on the client’s requirements.
Furthermore, employees cannot draw cash (to use for purposes other than what the card is meant for). “Greater visibility of spend ensures that fraudulent activities are detected early on.”
For more information on how a procurement card programme can take the hassle out of your petty-cash process and how prefunded cards can benefit your company contact Anita Carolus at AnitaCa@Nedbank.co.za.