A universal gift card or Petty cash cards offer a quick and easy method of facilitating expenses like stationery replenishment, mailing or shipping costs, parking fees, etc.
It helps your organization improve the daily productivity of the employees by allowing the quick purchase of items they need for your industry.
It is a reloadable prepaid Mastercard and Visa Card for small business expenses. Petty cash is a better alternative to writing cheques for smaller transactions.
Where is Petty Cash or Universal Cards Used?
Employees get more advantage of using Petty cash as any small purchase is done quickly. The investment can range anywhere from buying a stamp to delivering bagels for early morning meetings.
Universal gift card save time and energy spent on using checks for any small purchase. Many times a few vendors don’t accept checks for a small investment where the Petty cash cards are of great use.
Here are some of the advantages of Universal Gift Cards.
Convenient and Easy Access
Petty cash is easy to understand, and a friendly method of paying for the company’s expenses. It is easy to access and a convenient way for any small investment. Employees can use the card to make a purchase online, in person, or through the phone. Employees don’t have to use their money for business and waiting for reimbursement. It saves time in terms of finding receipts, expense reports, etc.
No paperwork is required. You don’t need to substantiate small expenses with receipts; thus, a significant reduction in cost and savings.
The amount is preloaded each month, depending on business to business in the organization. The value of $50 is sufficient in some cases whereas, others might need $200 or more in their Petty cash funds. The Petty cash depends on the type of frequent purchase your business needs in day to day activities.
As the business grows, you may increase or decrease your funds needed. It also reduces your budget expense by 20-30%.
Petty Cash or Universal gift cards work as an online account for your business use. When an employee uses the money for business purposes, it keeps a record of a few things like who takes the amount, for what purpose, and the date. Employees using gift cards should provide receipts for the purchase, or recorded in the business books.
You may also evaluate your card fund at the end of each month for a proper balance expenditure. When the card funds are low, you should refill the amount for secure transactions.
Taxes and Cash
It will help you in taxes for your business at the end of the year. As most of the expenses are for business purposes, your business taxes will be deducted in the financial year. Keep the record of every purchase and document it so that it will help in your taxes. If there is no documentation of your gift card purchase, it is difficult to deduct the expenses when you pay business taxes.
These were a few advantages of universal gift cards your organization can use for quick small business.