If you have recently begun working for a new company, it is important to know the company’s policy on expense management. Some may give you a company credit card, while some may ask you to use your personal credit card, and reimburse you after you submit an expense report. Each employer has their own unique policy. If your employer asks you to use a personal credit card for work expenses, there are some important things to know.
Have A Clear Understanding Of Expectations
Spend first, ask questions later is NOT an advisable strategy. Whether it’s a cup of coffee or an airline ticket, you should have a clear understanding of what your boss or employer expects to be submitted. If you submit an expense that is denied, you will be stuck paying for it. You should also know if there is a limit on the amount of expenses you can submit in a set period, and how quickly your employer plans to reimburse you. Remember, it’s your personal line of credit that’s being used to front these charges!
Vice versa, you should be upfront with your employer. If you are expected to pay for funds that you can’t afford, you should make that clear. Even if it is an awkward conversation to have initially, it will save you an even more awkward one down the road. Having a clear understanding of your employer’s expense management expectations, and being upfront about yours, will prevent problems that are difficult to correct.
You Can Benefit From Using Your Personal Credit Card
You can come out ahead if you are being reimbursed for your expenses. If you are reimbursed in an adequate amount of time, you should be able to pay off your credit card without any penalty – while reaping the benefits the credit card has to offer. Do your homework on various credit cards, as different cards offer different rewards programs. You can easily obtain extra miles, points, or cash back by using reward cards.
Be Meticulous With The Details
Although it may be a nuisance, it will serve you well to keep meticulous records and details. It’s recommended that you keep a secondary record of your expense management. This is vital not just for speedy reimbursement and maintaining good standing with your employer, but if you are audited by the IRS. Being able to show proof of money you’ve spent can help you avoid discrepancies over taxable income.
Additionally, you should pay your card right away. A reimbursement check should not be put toward personal use.