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Want better cost control? Make it part of your company culture.


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Great products and talented employees aren't the only ingredients you need to fuel sustainable growth at your company. Building a culture of responsible spending from the start also helps to ensure you have the funds available to scale your business. A well-managed commercial card program can help you develop that culture.

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Want better cost control? Make it part of your company culture.

  1. 1. Want Better Cost Control? Make it part of your company culture May 2018
  2. 2. To expand a thriving business, you need great products, talented employees and hard work. WantBetterCostControl?Makeit part ofyourcompanyculture 2 But that’s not all…
  3. 3. svb.comWantBetterCostControl?Makeit part ofyourcompanyculture 3 … Sustainable growth also requires good expense controls. A well-managed card program can help you build a culture of responsible spending.
  4. 4. Implement these 5 best practices along with your card program: WantBetterCostControl?Makeit part ofyourcompanyculture 4 1. Draft a clear spending policy 2. Put strong controls in place 3. Mine spending data 4. Insist on receipts 5. Require management review
  5. 5. Draft a clear spending policy WantBetterCostControl?Makeit part ofyourcompanyculture 5
  6. 6. Your policy should:  Explain allowed purchases  Specify maximum spending levels  Require compliance — regardless of seniority level A clear spending policy eliminates surprises — for you and your employees. WantBetterCostControl?Makeit part ofyourcompanyculture 6
  7. 7. Put strong controls in place WantBetterCostControl?Makeit part ofyourcompanyculture 7
  8. 8.  Set parameters according to job duties — e.g., specify merchant categories for office staff.  Have employees sign a cardholder agreement that references your spending guidelines.  Explain reporting requirements and consequences of unauthorized card use. Requiring employees to pay with cards strengthens your control over spending. WantBetterCostControl?Makeit part ofyourcompanyculture 8
  9. 9. Mine spending data WantBetterCostControl?Makeit part ofyourcompanyculture 9
  10. 10.  Flag outliers that might indicate abuse — e.g., unfamiliar merchants or weekend spending.  Look for overruns within expense categories.  Randomly audit cardholder accounts to ensure compliance. Proactively review spending data to ensure policies are followed. WantBetterCostControl?Makeit part ofyourcompanyculture 10
  11. 11. Insist on receipts WantBetterCostControl?Makeit part ofyourcompanyculture 11
  12. 12. Consider:  A threshold for submitting receipts  Requiring card use for even minor expenses to prevent undocumented cash spending The simple step of requiring receipts improves recordkeeping and prevents misuse. WantBetterCostControl?Makeit part ofyourcompanyculture 12
  13. 13. Require management review WantBetterCostControl?Makeit part ofyourcompanyculture 13
  14. 14. Be sure to:  Flag any out-of-policy spending to head off future problems.  Get everyone on board — including top executives — to send a clear message. Requiring management review and approval enforces accountability, while allowing for flexibility. WantBetterCostControl?Makeit part ofyourcompanyculture 14
  15. 15. Adopting sound spending policies in tandem with a well-managed card program can protect your company now — and as it grows. WantBetterCostControl?Makeit part ofyourcompanyculture 15
  16. 16. Get advice from the experts at WantBetterCostControl?Makeit part ofyourcompanyculture 16 Want to know more? Learn how the right card program can help you control expenses and gain efficiencies.
  17. 17. ©2018 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.