Employees and Company Credit Cards – What’s the Charge?
If you provide your employees with a company credit card, eventually someone is going to use it for a personal expense. In many cases, the employee is not attempting to defraud the company. But in other cases, it can be intentional. Either way it can create potential problems for your business. Several years ago, one of my clients issued her bookkeeper a company credit card. After a period of time, the bookkeeper regularly used the company credit card for personal purchases and did not notify the employer or reimburse the company. As the balance on the credit card increased, the bookkeeper began making partial payments on the increasing balance. My client completely trusted her bookkeeper, and never reviewed the credit card statements prior to payment, and the balance became quite…