A CFO’s Take on What Actually Works for Service-Based Businesses
This comes up all the time with my clients:
“Should we just give our team company cards? Or is it better to reimburse them for expenses?”
The short answer? It depends on how your business operates, how you track expenses, and how much control and visibility you actually want.
Here’s what I tell my high-level service-based clients who are scaling fast and want clean books, smart systems, and as little chaos as possible.
Company Cards: Convenient, But Not Without Risk
Giving your team access to a company credit card can save time:
No expense reports to file
No reimbursement checks to cut
Easier day-to-day operations
But here’s the downside:
You’re placing a lot of trust in every cardholder
Charges can be hard to track back to client jobs or specific services
Without a tight process, your card statements quickly become a mess
Worse? You could end up with liability issues or tax headaches down the line.
Reimbursements: More Control, More Clarity
Running a reimbursement-based system (especially under an accountable plan) gives you:
Clear documentation and approval processes
Stronger visibility into who’s spending what and why
Protection from misuse or overspending
Yes, it requires a little more admin on the front end. But if you’re managing contractors, a remote team, or multiple service lines, this method can actually create more financial clarity.
You can track:
Which services cost more to deliver
Which team members are spending efficiently
How to assign costs back to clients when needed
Hidden Risk: Use Tax Exposure
If your team is ordering supplies or software online and sales tax isn’t being collected (especially across state lines), you could be on the hook for use tax.
And guess what? If you’re using company cards and get audited, those statements are fair game. States are stepping up enforcement—and a few sloppy transactions could cost you.
Reimbursement systems make it easier to catch this before it becomes a problem.
My CFO Recommendation:
If you’re scaling a service business, here’s how I recommend approaching it:
Start with a solid reimbursement policy.
Use an accountable plan
Standardize your process
Require receipts and approval for every expense
Limit company cards to leadership.
Keep cards for key staff only
Set clear limits and review policies regularly
Use software to streamline both.
Use tools like Expensify, Ramp, or Divvy to automate tracking and approvals
Sync everything to your books for faster, cleaner reconciliation
Final Word
Whether you go the reimbursement route, issue company cards, or use a mix of both—the key is having intentional systems in place.
Too many business owners hand out cards, hope for the best, and then wonder why their books are a disaster.
If you’re not sure what setup makes the most sense for your business, or you’re ready to clean up the mess and start scaling with more clarity—let’s talk.
We’ll find the system that gives you control, protects your team, and keeps your numbers clean.
That’s what a CFO does.
803-619-0261 info@kristingravitt.com
