I am working in a private Limited Company. But in this company I observed that employees are using their personal credit cards for making official payments. Also in one case somebody else's credit card has been used to book ticket of another employee.
Is it a proper practice or we should have corporate credit card for official expenses? As per my opinion they should not execute such practices in an organization.
09 June 2009
Credit card is one of the mode of payment similar to cheque payment. Expenses charged to credit card (personal or official or third party) means payment has been settled for expenses. There should not be any accounting issue so long as employee submits expense supported with proof of payment by charging to credit card.
Issue of official card has another dimension of misuse and is a matter of company policy.
CAclubindia
