How to avoid business credit card abuse

Written on Dec 14, 2017

No business wants to be put in the uncomfortable position of examining how a trusted employee abused a corporate credit card. And it’s even worse if it’s been occurring for a long period of time.

“Deficient internal controls and lax supervision enables individuals to enrich themselves at will,” writes Frank Suponcic, CPA, in the November/December issue of CPA Voice.

The trick to avoiding all this mess, Suponcic writes, is stricter guidelines when it comes to business credit cards.

“I am a staunch advocate of requiring employees to use their personal credit cards and adequately substantiate the expenditure (i.e., provide receipts and clearly state the business purpose) to the company that would, in turn, reimburse the employee,” Suponcic writes. “This approach enables the company to avoid reimbursing the employee for unauthorized or unsubstantiated expenditures.”

CPA VoiceRead the rest of the story online now to learn the four strategies Suponcic lays out to avoid business credit card abuse.

Don’t miss this convenient, self-study CPE

Did you know that reading CPA Voice can help you satisfy your CPE requirement? No matter your location or the time of day – and even without the benefit of electricity – you can gain CPE credit with each issue.

Every edition includes a 12-question self-assessment exam covering content from that issue. Receive a grade of 75% or higher and you’ll earn one hour of CPE credit in specialized knowledge.

Best of all, you can take the exam when and where it’s convenient for you, either online or by mail. Exams remain available online – and may be completed for CPE – through the same month of the following year.

November/December 2017 Exam

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