Audit trails made easy with virtual cards

For financial managers, keeping tabs on every transaction can be a tricky ask. In the B2B space, where payment volumes are high and accuracy is a top priority, having a clear and accessible audit trail is essential for both security and accountability. 

Virtual cards are a rising tool, and are increasingly being recognized as a powerful way to simplify this process. Virtual cards offer a streamlined and secure way to improve audit trails while driving efficiency in financial operations. Read on to see how virtual cards can be implemented into your financial operations

Understanding virtual cards

Virtual cards are essentially digital versions of traditional credit cards, designed specifically for online or contactless transactions. A virtual card is a unique 16-digit number that is generated for each transaction or purchase, replacing a physical card. These single-use or limited-use numbers tie to a specific purchase, reducing fraud risk and simplifying transaction tracking.

Unlike traditional corporate cards, virtual cards can be purpose-built for specific transactions. For instance, when a company uses a virtual card to pay a vendor, it ties the transaction details directly to that card number, providing transparency and traceability. This feature makes virtual cards particularly beneficial for managing B2B payments, where high accountability is required.

What is an audit trail and why is it important?

An audit trail is a clear record of every financial transaction a business makes, showing each step from start to finish. Finance teams audit transactions to track exactly how and why money was spent, making it easier to spot errors or fraud. For financial managers, having a good audit trail is essential – it keeps everything transparent and helps the company follow rules and policies. When it’s time for an audit, this detailed record provides proof that finances are being managed responsibly and accurately.

How do virtual cards improve audit trails?

1. More transparency over your transactions

One of the main advantages of virtual cards is the ability to create a unique card number for each transaction. This means each payment has its own record, making it far easier to track specific expenses. Financial managers can quickly pull up detailed information about who made the purchase, the amount, and the purpose of the transaction. This granularity in transaction data simplifies the audit process and improves transparency across the board.

For example, if a WEX virtual card is used to book travel, the system instantly logs the transaction. Details about the booking, the amount spent, and who approved it can be documented, giving the transaction clear purpose. When it’s time for an audit, each step in the process is documented and easily accessible, making the compliance review simpler.

2. Reduced risk of fraud

Virtual cards can help minimize the risk of fraud, which is a common challenge in financial management. Because these cards can be generated for one-time use or for specific vendors, it becomes much harder for unauthorized individuals to misuse them.

This added security also simplifies the audit process by providing assurance that transactions are legitimate and authorized. Any attempt to use the virtual card number outside its intended purpose would be blocked, leaving a clear and secure audit trail.

3. Automated record keeping

Virtual cards often feature automated tracking and record-keeping capabilities. The system automatically logs every transaction made with a virtual card, saving time for finance teams who would otherwise manually record transactions or chase down receipts. This automation provides financial managers with a record of all purchases, complete with transaction details that they can access anytime.

Automated record keeping is particularly helpful during audits, as it removes the need for extensive paperwork and provides a digital trail that can be easily searched and retrieved. This efficiency is not only valuable during an audit but also when analyzing spending patterns and budgeting.

4. Expense reconciliation

Reconciling expenses is a time-consuming task, especially in companies with numerous transactions. Virtual cards make this process faster and more efficient. Since each virtual card is issued for a unique purpose, there’s no ambiguity about the nature of the transaction, who authorized it, or where the funds went.

For financial managers, this means less time spent matching expenses to budget lines or verifying approvals. With virtual cards, the data needed for reconciliation is already organized and categorized, reducing the risk of errors and ensuring financial records are accurate. During an audit, this level of detail can significantly reduce the time required to validate transactions.

5. Improved supplier relationships and compliance

Virtual cards also contribute to a more organized and consistent supplier payment process. By issuing a unique virtual card for each vendor transaction, financial managers can ensure that payments are processed promptly and accurately. This consistency helps strengthen supplier relationships by providing a reliable payment method and clear record of each transaction.

Additionally, virtual cards can help companies adhere to internal compliance policies by allowing them to set spending limits and approval workflows for specific purchases. This not only protects against unauthorized spending but also ensures compliance with corporate guidelines. When audit season rolls around, having these measures in place simplifies the process and provides clear evidence of policy adherence.

Implementing virtual cards isn’t just about keeping up with digital payment trends – it’s about future-proofing your company’s financial processes and making audits easier and more efficient.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.