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FAQ: What's the difference between Personal Spend and Corporate Card Spend?

When submitting expenses in Zudello, you often need to distinguish between expenses paid using your own money (Personal Spend) and those paid using a company-issued credit or debit card (Corporate Card Spend). This distinction is crucial for correct processing.

Personal Spend:

  • Definition: Expenses paid for using your own personal funds (cash, personal credit/debit card, personal bank account).
  • Purpose: You are seeking reimbursement from the company for these out-of-pocket business expenses.
  • Workflow:
    1. You submit the expense (receipt, mileage).
    2. You add it to a Reimbursement Claim.
    3. The claim is approved.
    4. The approved claim triggers a payment from the company to you (often via Accounts Payable or Payroll, depending on integration).
  • Examples: Paying for a business lunch with your personal credit card, using your own car for business travel (mileage claim), buying minor office supplies with cash.

Corporate Card Spend:

  • Definition: Expenses paid for using a credit or debit card issued to you (or the company) by the organisation. The company is ultimately responsible for paying the card bill.
  • Purpose: You are not seeking reimbursement. Instead, you are submitting the expense details (with receipt) to:
    • Justify the business purpose of the charge that appeared on the company card statement.
    • Provide necessary coding (Account, Department, Tax Rate, etc.) for accounting.
    • Allow the finance team to reconcile the submitted expense against the corresponding transaction on the corporate card feed/statement.
  • Workflow:
    1. You submit the expense (receipt), clearly marking it as Corporate Card Spend.
    2. (Optional) You might add it to a Reconciliation Claim (depending on company process).
    3. The expense/claim is approved (verifying business purpose and coding).
    4. The finance team uses the Card Reconciliation screen to match the approved expense against the imported card payment transaction.
  • Examples: Paying for flights or hotels booked with a company card, purchasing software subscriptions with a corporate card.

Why it Matters:

Selecting the correct spend type ensures:

  • You get reimbursed correctly for personal expenses.
  • Company card charges are properly accounted for and reconciled.
  • Claims are routed through the appropriate workflows.

Always check the payment method used and select the corresponding spend type when submitting expenses in Zudello.