As the UK economy suffers with inflation, more and more employees are facing what has been termed the ‘cost of living crisis’. And while employers might not be able to match increases in the costs of everyday food, goods, services, and power with higher salaries, they can help ease cashflow concerns with better management of expenses.
The Office for National Statistics’ Consumer Prices Index rose by 7.8% in the 12 months to April 2022, up from 6.2% in March.
As a result, many of the items employees buy while doing their job – fuel, food, drinks and supplies – are now more expensive. So how can businesses help their employees manage rising costs – and their own?
Using a business credit card for expenses can help improve cashflow for both the business and its employees, allowing firms to plan and control payments, while workers avoid being of pocket because they have had to buy food, drink, fuel or supplies with their own money.
By using a card on which to put expenses and fuel, companies can ensure that employees are not hit with costs for just doing their job, which could lead to serious issues with staff motivation, performance and even retention. Indeed, research by HR Director magazine found one in five (21 per cent) employees have lost motivation at work due to financial stress.
Giving employees a business credit card isn’t a signal to let them spend indiscriminately though. Buying the right things is important too.
Payment and expense software solutions which offer complete control down to card level of all company expense spending make it easy for businesses to save money and time by avoiding unnecessary purchases.
Managers can set levels of spending, and tailor the type of products which can be bought with any card according to preferences, via an online portal.
The online dashboard means you can monitor card usage in real time too, and analyse expenses, ensuring spending does not get out of control.
Another way to help employees with the cost of living is to ensure that they are not having to use their own money to pay for business expenses, which can often take weeks or months to get reclaimed.
The latest expense submission and tracking technology simplifies expense capture and claims through an app-based system, so every payment and receipt is uploaded automatically to the system.
This combination helps remove unnecessary pressures on cashflow caused by inefficient reclaim processes or lost receipts, and streamlines administration too.
It’s not just employees who need help with cashflow though. Businesses are also affected by inflation. Half (50%) of businesses reported an increase in the prices of materials, goods or services bought in March 2022. Almost a third of businesses (31%) said they expected the price of goods or services sold in April 2022 to increase.
With a business credit card such as Allstar Plus, one account, one payment method and one invoice make it easy to manage expenses, making it ideal for on-the-road expenditure and for office purchases for supplies and stock.
The Allstar Plus all-in-one business credit card and fuel card gives you:
Up to 44 days interest-free credit
Controlled access to the Visa network
Manage expenses in real-time with digital receipts
Discounts on business travel
Pay for fuel across Europe with Visa
Save 10% on vehicle service, maintenance and repair
Access the UK's largest fuel network
Save on fuel with Discount Diesel
HMRC compliant invoice for UK fuel
Visit Allstar Plus for more information.