Expense Cards for Employees: How to Issue, Track, and Control Spend

Managing employee spending with expense cards gives small and medium UK businesses tighter control, real-time visibility, and less financial risk. 

This guide shows you how to issue cards, set smart spending limits, monitor every transaction, and apply best practices to control costs and smooth processes.

Quick Reference

To control employee spending with expense cards, choose a reliable provider that issues physical and virtual cards and links smoothly with your accounting software. Set clear spending limits for each role or team, so staff have the freedom they need without risking overspend. Use real-time tracking tools and mobile alerts to monitor every transaction instantly, flag unusual activity, and keep budgets on track. It’s a simple way to stay transparent, compliant, and in control.

Importance of Expense Cards for Businesses

Expense cards are a simple but powerful way to take control of employee spending while saving everyone time and hassle. Here’s why they matter:

Clear Oversight: Get a real-time view of every transaction. No more waiting for end-of-month claims to see where money’s gone.

• Built-In Controls: Predefined spend limits for each employee or team help prevent misuse and keep everyone within policy, without micromanaging.
  
• Less Paperwork: Automatic transaction recording means fewer lost receipts and faster reimbursements.
  
• Seamless Integration: Connect cards directly to your accounting or Enterprise Resource Planning (ERP) software. This keeps spend data up to date, automates categorisation (including VAT), and speeds up month-end reconciliations.
  
• Smarter Reporting: Gain better insights into spending patterns and spot money-saving opportunities.

Put simply, expense cards make it easier to manage costs, boost compliance, and free up time for more valuable work.

How to Issue Employee Expense Cards: A Step-by-Step Guide

Set up your expense card system properly, and you’ll save time, reduce risk, and keep spending transparent. Here’s how:

1/ Choose the Right Provider
Pick a platform that offers both physical and virtual cards, with strong accounting and banking integrations to keep everything in sync.

2/ Collect Required Documents
Gather proof of ID and employment for each cardholder to meet KYC (Know Your Customer) checks, which are a must for regulated providers.

3/ Create Individual Accounts
Set up separate accounts so every transaction links back to the right person, making it easy to track who’s spending what.

4/ Distribute Cards Securely

• Physical cards: Employees activate these and set a secure PIN to protect company funds.
  
• Virtual cards: Generate instantly for online payments or short-term projects. Click here to read our guide to the best virtual expense cards.
  

5/ Link to Your Banking Portal
Connect each card to your main business bank account. This will help with real-time cash flow tracking and smooth reconciliations.

6/ Set User Access Levels
Give standard users clear spending limits. Admins and managers can adjust budgets, approve top-ups, and monitor spending as it happens.

How to Track Employee Spending Effectively

Keeping track of what your team spends shouldn’t feel like guesswork. Modern expense cards come with real-time monitoring tools, user-friendly mobile apps, and smart alerts that show every transaction as it happens, no more waiting until month-end to find surprises.

Linking your expense system directly to your accounting or ERP software keeps data flowing smoothly and eliminates tedious manual uploads. This means transactions are coded and matched automatically, saving hours on reconciliations and reducing errors.

The best platforms go further, offering:

• Automated reports for clear, up-to-date spend summaries
  
• Spending analytics to spot trends and highlight areas to save
  
• Instant notifications that flag unusual transactions or out-of-policy spend for quick action
  

Together, these features help you catch issues early, keep budgets on track, and give you confidence that every pound is accounted for, without the paperwork headaches.

How to Control Spending and Set Limits for Business Expenses

Putting smart controls in place helps prevent spending from spiralling out of control and keeps your team accountable. Start by restricting spending to approved categories and merchants. For example, you might allow travel, client meals, and office supplies but block entertainment or personal shopping.

Next, set daily and monthly limits for each cardholder based on their role. This prevents big surprises on your statements and encourages teams to budget wisely.

For high-value purchases, add an extra layer of control with manager approvals. A simple workflow could look like this: an employee requests a purchase over £500, the system pings their manager via app or email, and the card stays blocked until the manager approves or declines.

These practical controls reduce fraud risks, encourage better spending planning, and build trust so everyone knows the rules and follows them.

What Are the Costs and Timelines for Employee Expense Cards?

Getting the cost picture clear up front helps you budget with no surprises. Here’s what to expect:

• Typical Fees: Most providers charge monthly or annual account fees, plus transaction costs. Some add ATM withdrawal fees or foreign exchange surcharges.
  
• Hidden Costs: Watch for penalties like fees for exceeding your credit limit, or unexpected charges for extra cards or advanced features. Even ‘free’ plans may come with paywalls for premium tools.
  
• Setup & Cards: Creating accounts and issuing physical or virtual cards usually takes 1–3 working days, depending on how quickly you provide ID and company documents.
  
• Integrations: Linking your cards to accounting or ERP software can add a few hours or days, especially if you need custom workflows.

A clear view of all fees and timelines means no nasty surprises when your next statement lands.

How to Ensure Policies & Compliance in Business Finance

Clear usage guidelines help keep your expense card system watertight and your business on the right side of the rules. Start by drafting a simple, accessible policy that explains exactly what employees can and can’t spend money on. Ensure it aligns with HMRC rules, especially regarding a valid business expense.

Record-keeping is non-negotiable. Insist on receipts for every transaction, including proper VAT invoices, so you’re ready for audits and can reclaim tax correctly. Store this data securely in line with GDPR to protect personal and financial information.

Regular internal audits help spot any misuse early and keep everyone accountable. Be clear about the consequences, too. Your team should know that non-compliance, like failing to upload receipts or overspending, could lead to having cards frozen or facing disciplinary action. A fair but firm approach keeps everyone on track.

What Are the Alternatives & Complementary Tools to Corporate Expense Cards?

Corporate expense cards are an efficient way to manage spending, but are not your only option. Many UK businesses still use a mix of these tools:

• Petty Cash: Handy for small, ad-hoc purchases like office supplies. However, losing track without clear logs and receipts is easy, and there’s no built-in oversight.
  
• Reimbursements: Let employees spend their own money and claim it back later. This can work for infrequent spenders, but it delays financial visibility and adds admin for both staff and finance teams.
  
• Prepaid Cards: A middle ground. You load a set amount onto each card, helping limit spending and avoid debt. They’re suitable for contractors or project-specific budgets but may lack real-time integrations with accounting software. You can read our guide to the best prepaid expense cards here.
  

Many companies combine these tools with expense cards to cover all bases, just make sure you’ve got clear policies for each.

Employee Expense Card FAQs