The mere thought of reconciling Christmas party expenses is enough to make even the bravest finance warrior break into a cold sweat. You see, this isn’t just any party; it's an extravaganza filled with food, drinks, and office decorations that would put Santa’s workshop to shame.
Picture this: the office buzzes with excitement as employees scurry around, buying food fit for kings, enough drinks to fill a swimming pool, and decorations that could rival the set of a Hollywood blockbuster.
And oh, did I mention that this was just the pre-party? People need transport to get to the actual venue, and sometimes they get a bit carried away and use someone else’s credit card for the drinks tab.
Consider Dave, the jolly owner of an Australian small-to-medium-sized business. Thanks to how difficult the banks make it to get corporate credit cards, only Dave has a credit card. As the night unfolds, everyone wants a piece of the plastic magic, turning Dave into a temporary saint of spirits.
The two main problems with this scenario are:
- The lack of real-time tracking on the company credit card can transform the office party into a financial minefield. With employees gleefully swiping away for drinks and delights, the absence of immediate oversight puts the business at a significant risk of overspending, and the budget can easily spiral out of control. It's like a holiday shopping spree with no price tags – thrilling in the moment, but a financial nightmare when the bill arrives. To keep the ship afloat and the budget intact, real-time tracking isn't just a luxury; it's a financial lifeline.
- Tracking receipts. Ah, those tiny slips of paper that hold the key to financial sanity. Sadly, in the midst of laughter and revelry, receipts tend to play hide and seek. They slip out of pockets, vanish in the wind, and sometimes, end up being mistaken for confetti. The finance team's nightmare? You bet!
So, how can businesses survive this festive financial frenzy without losing their minds (or their receipts)?
1. Set a tight expense management policy
If you are set on using credit cards, make sure that you have a tight expense management policy and enforce it to ensure that receipts don’t go missing. Make the card-holder aware of the budget limit - and maybe let the barman know and ask them to warn you when you’re getting close to hitting it.
2. Embrace the digital age
In an era where smartphones are practically an extension of our hands, it's great to have an expense management system that allows employees to snap pictures of receipts in real time, ensuring that no receipt is left behind. It's like having a personal finance assistant right in your pocket!
However, it would be wise to make sure your accountant sets some time aside the following week to ensure that receipts are correctly matched against expenses.
3. Set clear spending limits
To avoid financial free fall, establish clear spending limits for each category. From drinks to decorations, having predefined budgets helps in keeping expenses in check. After all, Santa may be generous, but he still sticks to a budget, doesn’t he?
A good expense management platform allows you to customise budgets to each individual, so that they only have access to that amount of money on their personal card.
4. Encourage responsible spending
Remind employees that the company card isn’t a golden ticket. Encourage responsible spending and discourage sharing credit cards like trading cards. After all, the more the merrier shouldn’t apply to credit card usage!
5. Organise a receipt treasure hunt
If you don’t have a system where staff can easily snap photos of receipts and upload them, why not designate a responsible soul to collect all receipts throughout the night? Make it a game, and watch how suddenly everyone becomes an expert at finding lost receipts.
So there you have it, my friend - a survival guide to managing team building expenses during the festive season. With a dash of digital magic, a sprinkle of responsibility, and a whole lot of laughter, businesses can navigate the holiday expense maze unscathed.
Remember, it’s not just about the bottom line; it’s also about creating unforgettable memories that last a lifetime. Now go forth, party responsibly, and may your expenses be ever in your favour! Happy holidays! 🎉🎄
Psst.. have you considered prepaid cards?
Not that we’re biassed or anything ;) but you should definitely consider using prepaid cards like Budgetly for team expenses. These cards come preloaded with a specific amount, preventing impromptu spending sprees. Plus, they eliminate the need for employees to borrow Dave’s card, sparing him from a financial hangover.
For more information on Budgetly’s prepaid corporate card and how it works, schedule a demo with us today, or watch a 10-minute recorded demo. You’re also welcome to check out what our customers are saying about us on Capterra, an independent review site.
