Managing the finance workload with a lean team requires a keen focus on efficiency. One tactic used by busy finance managers is to take advantage of the wealth of data that’s available when your business uses credit cards to make payments.
"...take advantage of the wealth of data..."
This information gives you insight into spending and streamlines expense tracking. You can access a tool such as Mastercard’s SmartData dashboard or integrate transaction data with expense reporting software.
Read on to learn why it’s worth the effort and how to get started.
Lighten the admin load on your finance team
Linking card data to expense apps can streamline expense-report processing and card-account reconciliation, and make it easier to enforce expense policies. In a typical integration scenario, employees who use credit cards for company spending — both for purchasing and travel and entertainment — log into an expense app to find their card transactions already uploaded. They can add or confirm company-specific information such as cost center or expense codes, and attach receipts. In most cases, the expense apps can be set up to require those steps before the cardholder submits the report. That saves the finance department time spent chasing supporting documents and information required to properly account for an expense.
Feed financial analysis with integrated card data
Accessing up-to-date card transaction data allows you to rapidly determine whether budgets are being maintained and employees are sticking to purchasing policies. For example, generating a consolidated view of a category, such as office supplies, is a straightforward process and helps show how much the company is spending with each merchant. With that information, you can consider cost-saving procurement strategies such as negotiating a favored-supplier contract. Or, if such a contract is already in place, it allows you to see who may be spending with an out-of-policy merchant so that you can investigate why.
Identify your best access and integration approach
Finance teams using SVB commercial card accounts have several options for tapping transaction data, but the two most common are to either use the SmartData dashboard or set up integration with an expense reporting app. Consider which may fit your situation best:
- Startups or smaller companies that use fairly informal tools such as spreadsheets to report and track expenses can use SmartData to improve those processes and provide analysis capabilities without adding cost. Individual cardholders can review and annotate their transactions through SmartData, as well as attach receipts or other documentation, then pass them on for approval. Finance managers can set up reports and export files in standard formats that can be read by accounting software.
- Companies that are considering investing in expense management software can choose a configuration capable of ingesting a data feed provided by SVB in Mastercard’s standard CDF3 (Common Data Format). This enables the more sophisticated reconciliation and tracking functions available through these packages. Because the expense software packages typically link into accounting apps, this data should also be available to your operational software.
Choose software that syncs with your data plan
Most leading expense management vendors sell packages that will accept a CDF3 data feed, but not every configuration in their lineup may support it. Some entry-level expense products use screen-scraping technology via a third party to pull in card transaction data, which may introduce delays. Make sure that the system you select can directly ingest that industry-standard feed to increase the likeilhood that the data is always up to date.
Involving the experts at SVB early in your decision process will allow us to share our advice and experience. Please don’t hesitate to reach out to me if you’d like to discuss the integration experience in more detail. Visit svb.com for more information on our Commercial Cards offering.
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. You should obtain relevant and specific professional advice before making any investment or other decision. Silicon Valley Bank is not responsible for any cost, claim or loss associated with your use of this material.