Business money is a challenge to manage. It can be a full-time job to maintain records of who spent what, and why. To facilitate this, many companies are currently employing special tools to do so. These are products of the fintech market. PEX is one of the successful firms in this line. PEX may be the question on your mind as to whether it is the appropriate choice to apply in your team. This is the guide which will assist you in doing so.
We shall have a close observation of PEX. It will assist us in terms of company spending. We will examine its capabilities in terms of its cost control. This is aimed at providing you with clear easy to understand information. This will assist you in making a wise decision with regard to your business.
Evaluate the Fintech Company PEX on Expense Policy
We refer to the company money expenditure regulations when we speak of expense policy. These rules can be enforced automatically with the help of a good system. This is a key area to examine. PEX is not a traditional bank. It is a technology platform of finance. It offers a software and cards system. The system is aimed at providing business with control over their expenditure.
The primary product is a package of debit cards. These are connected to a central account. This account is invested by business owners. Thereafter, they distribute cards to their employees. However, this is the point of interest: you can make each card rules. It is one of the current methods of controlling business expenses. It gets out of cluttered receipts and unexpected expenses. It works on establishing rules prior.
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Why a Clear Expense Policy is Your Best Friend?
Talking of PEX, however, before we set out on this we should discuss the reasons which make rules so important in spending. An obvious expense policy is a financial strategy. It makes all the team members know what they are able and cannot purchase. This eliminates misunderstandings and errors. It also ensures that the company money is utilized in the company objectives. Spending is liable to be out of control without clear rules. This will be damaging to the budget of the business. A good system simplifies the following and enforcement of these rules.
How to Evaluate PEX for Expense Management?
But how would you know whether PEX is a fit? You have to consider a few important things. Consider the requirements of your company. Do you manage a budget of a significant team? Do you not want to stop following paper receipts? Do you feel about staff spending excessive time? These questions will help in asking these questions. The following will subdivide the key characteristics of PEX. It will be of assistance to you in your evaluation of PEX platform.
A Deep Dive into PEX's Policy Enforcement Tools
This is where PEX proves to be very bright. The fact that one can establish rules on each card is a strong feature. It puts the proprietor of the business in control. You are not merely issuing an employee with a card and wishing him/her the best. You are providing them with a tool that has inbuilt boundaries. This is the main part of automated expense policy enforcement.
Setting Spending Limits and Controls
It is up to you on how much money you place on each card. This is one of the most basic forms of control.
- Individual Card Limits: You are able to assign a weekly or monthly limit in regards to the amount that each employee is allowed to spend through the card. As an illustration, you may set a 500 monthly budget on client lunches in the hands of a salesperson.
- Merchant Category Controls: This is a very intelligent feature. It is possible to block whole categories of stores. An example is that you can block out liquor stores or jewel shops transactions. This is to ensure that company cards are solely used on business requests.
- Specific Merchant Blocking: It also has the ability to block specific stores or gas stations.
- Time-Based Controls: You can even get your time when the card is allowed to be used. A delivery driver card may be restricted to work at 6 AM to 6 PM.
These guards serve as an electronic fence. They continue to spend within the territory that you set. This will hugely curb chances of policy offenses.
The Magic of Pre-Set Funds
PEX involves the system of assigning money in advance of expenditure. This is unlike receiving a post facto bill. You add money on the principal PEX account. In this step, you then share it among the individual cards as required. This implies that you can never spend more than your budget. You are just spending the money you have already saved to spend. It is an excellent method of keeping costs on the employees down to the line. It is an active, rather than a passive management of money.
Evaluate the Fintech Company PEX on Expense Reporting
It is no fun to race around after the receipts and complete spreadsheets. It is very time consuming and may cause errors. This is one of the problems that PEX tries to address through its software.
Say Goodbye to Paper Receipts
In the case of PEX, the transaction digital record is the beginning. The information is recorded in real time whenever a card is swiped. The system will note the date, the amount and the merchant. This data will be directly contained in the PEX reporting dashboard. It does not require one to type it in manually. This aspect on its own can save companies dozens of time each month. It simplifies the process of reporting the expenses.
Real-Time Visibility into Spending
Spending can be viewed as it occurs as a business owner or manager. PEX dashboard may be logged into at any one time. You will be able to see the used cards. You may know how and where it was used. This real-time cost tracking will allow you to have an accurate view of how your company is spending at any time. It is not necessary to have to wait till the end of the month and figure out your finances. This assists in making superior judgments in a shorter time.
Simplifying Reconciliation
The term reconciliation is a large term that refers to balancing your book with your bank account. In the old systems, this is difficult. With PEX, it's much easier. All the transactions are already structured in the system. It is easy to know what expenses are attributable to which project or employee. This eases the process of auditing expense and compliance.
Expert Quote:
The movement of post spend reimbursement to pre-allocated funds is a game changer to the small business. Applications that contain this such as PEX essentially lessen financial hazard and managerial load. – Jane Doe is a Financial Controller who has more than 15 years of experience.
PEX vs. The Competition: A Quick Look
There is not just one company in this field. It is useful to compare it to see how it works out. The biggest distinction usually consists in the kind of card. PEX uses a debit card system. Money you use is your personal money, stolen right off of the money you loaded. Corporate credit cards could be used in other systems.
A debit system also makes budgeting easier since you can never spend what you do not have. A credit card system may have various rewards. This is one of the considerations which can assist in your analysis of your corporate card.
Is PEX the Right Fit for Your Business?
Once you have evaluated all the features, what is your decision? Pex is a highly powerful instrument of some kinds of businesses.
Who Benefits Most from PEX?
- Businesses that have worker in the field: Like construction workers, delivery people or repairmen.
- Small businesses: The pre-set fund model ensures that it does not exceed the budget.
- Organizations that prefer to save on the administration work: The automated reporting and tracking save much time.
Potential Considerations
- It is a specialized system. You may require another bank in case you require a complete business bank account and loans among other services.
- Debit card system is not like the traditional credit cards. One should be familiar with this model.
Final Thoughts on PEX for Expense Management
Assessing the fintech business PEX on expense policy is to consider a tool developed to be controlled and clear. It is stronger in specifying rules at the beginning and in tracking it automatally.
It is a wonderful option to implement among companies that are aiming to do away with unexpected expenses. It facilitates implementation of policies without any difficulty and provides a clear picture of where the money is being spent. PEX is definitely a platform that you should consider in case your primary objectives are budget compliance control and reporting simplification.
Frequently Asked Questions
Q1: Is PEX a credit card?
No, PEX is a debit card system. It implies that funds that are spent go straight off the money you have already deposited into your PEX account. The card itself does not allow you to go into debt.
Q2: What is the benefit of PEX when it comes to an expense audit?
PEX makes audits easier. Each transaction is electronically documented including information such as date, amount and merchant. This produces a record that is searchable. All spending can be quickly seen by any employee, department or time period.
Q3: Does it support PEX in accounting software?
Yes, PEX provides integrations with such popular accounting software as QuickBooks and Xero. This can automatically synchronize your expense data, which saves you the manual entry of data in it.
Q4: What is the effect of loss of PEX card by an employee?
You are able to get to the PEX dashboard and immediately switch off the lost card. This makes it impossible to use it by anyone. You are then able to request a new card to the employee. The money is secure as it is insured.
Q5: Does PEX suit a very small company?
PEX can be good with small businesses, yes. It also assists even an individual or a team of one or two people to be organized. The control functions will allow avoidance of overspending that is vital considering that the small companies are closely monitored in their financial budgets.
