More and more companies have switched to a remote team setup in recent years, a change that offers advantages and disadvantages for organizations. Some benefits include the reduced need for shared workspaces, office equipment, and commute. Meanwhile, some teams must adjust how they conduct their operations, such as in communications, scheduling, or expense management.
A company’s finance department can easily rely on traditional banking and other physical forms of budget distribution to financially support operations and the staff. However, these forms of financial handling aren’t always suitable for a remote team. The challenge for most organizations is creating an expense channel that’s reliable, sustainable, and cost-efficient.
If you want some tips on how to create an effective expense management channel for your remote team, let this article be your guide.
1. Consider Your Locations
Do you have a remote team comprised of members from various locations across the globe? Then, your expense management channel should be able to cover most, if not all, of your sites. Using one financial platform will make it easier for you to track expenses. However, some companies may need to manage multiple channels if the options are limited to a particular region. For instance, a business that operates in the United States can find various financial channels to choose from should they have team members in big cities. But the situation may not be the same in more remote areas.
Another reason it’s essential to consider locations is that some countries may have specific restrictions when transferring funds from overseas. It’s best to check any banking or financial regulations and where you’ll move funds to avoid delays, inconvenience, or violations.
2. Ensure Accessibility of Funds
To ensure that your remote team members have easy access to funds when needed, check if virtual transactions are available in all locations, as this is the most convenient way to retrieve funds. Next, you must consider other withdrawal methods, such as physical banking or payment centers. Some payment channels also offer virtual cards for business which can be used in various locations and delivers secure transactions. This expense management option is ideal for employees on business trips or in charge of procuring items relevant to a project.
3. Check Currency Availability
To optimize convenience and efficiency, select one payment channel where you can use various currencies for a particular distribution purpose, such as for fulfilling financial obligations, material procurement, or payroll. Doing so can help you accommodate team members in different areas and give them access to funds in their local currency or the currency of their choice.
For instance, you can use one payment channel as your payroll account, distributing funds to various locations where remote employees can receive their salary through a local bank account in the currency of their preference. You won’t have to create one bank account per location in this setup. Instead, you’ll have one payroll account that can cater to everyone in your organization.
One advantage of having a centralized payroll account is that it’ll be easier to keep track of fund transfers, especially if you can access the account virtually. Moreover, you can also quickly address any disputes or payment errors since you only have one bill to monitor. Overall, using one multicurrency account can help streamline your payroll processes.
4. Account for the Conversion Rate and Transfer Fees
Lastly, you also need to factor in the conversion rate and transfer fees to ensure you’re not paying too much for each transaction and have access to the best conversion rates. While paying for one marketing may not seem to cost as much, these fees can quickly grow over time, taking up a significant amount of your operational costs. Hence, it’s essential to choose a payment channel that offers competitive rates while ensuring that all your transactions are safe and hassle-free. This way, you ensure that you select the most cost-efficient payment channel for a particular location.
Conclusion
You will have many options to choose from if you’re looking for expense channels that you can use to support remote workers. Many financial companies now offer easy-to-access business accounts that involve 100% virtual processing. So, there’s no need to visit a physical bank if you want to open an international fund. Moreover, you can enjoy multicurrency accounts, which is highly useful if you have team members from different regions. Since you have a variety of expense channels to choose from, consider location, accessibility, currency, and rates to select the best one that would suit your business needs.
