In our Friday lunch example, we would allocate $15 to each person since we have 30 spenders in the budget. This protects the budget from being overspent by a single person on a shopping spree. However, in order for the transaction to be approved at the POS, they must have money allocated to them out of the budget pool (unless they’re a budget owner - then they can spend straight from the budget). Then, they add cardholders as valid spenders within the budget. The Divvy administrator must first create a budget (for example, “Friday Team Lunch”) with a defined spending limit - let’s say $450. In order to use the card, you first have to tell Divvy who is allowed to spend how much money from which budget categories. When you first receive a Divvy credit card, you won’t be able to buy anything with it and all transactions will be declined. Divvy allows for decentralized budgetary spending in a coordinated, controlled way. It allows you to control what every cardholder can use their credit card for before the purchase is made. Think of Divvy as a programmable credit card platform managed by a web and mobile app. I have a reputation around the office for geeking out over financial tools and I was convinced that Divvy would revolutionize the way we manage and distribute our budget and allow our team to easily spend money they need to have access to. Luckily, a few days before we vacated the office, our new credit cards from Divvy showed up. Meanwhile, our accounting team would have very little visibility of what was spent until the credit card statements arrived at the end of the month. If we had to do this a couple of months ago, we would have facilitated this the way most companies distribute spending authority: a few people would pay with their company credit card, but most would pay for it with their own funds and then fill out the dreaded expense report and wait for reimbursement, all while floating the company’s expenses. As described here, we decided to make a conscious effort to support our local economy and enable employees to order out lunch from a local restaurant. When we made the move to remote work our weekly catered team lunches naturally had to change in format.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |