Effectively Manage the Business with a Small Business Credit Card
Have you thought of applying a small business credit card? If you're thinking twice, check this article to find out about small business credit cards and its benefits.
Separate business from personal expenses. Why is it important to separate your business expenses from your personal finances? For a new business, it may not seem like a big deal if you are combining these two finances together. However, as the business expands and more expenses are incurred, you will see how important it is to have a separate business account.
Making financial decisions would prove to be very difficult and confusing if there is no clear boundary between your business and personal finances. In addition, filing your taxes would mean more work since it would be harder to distinguish which of your expenses officially qualify for tax deduction and which ones do not.
Track your expenditures more easily. Aside from your monthly billing statements, business credit card issuers also provide quarterly and year-end summaries of your account. These summaries show an itemized and categorized report of all your transactions for the past year. Using them as references to your bookkeeping and accounting is more accurate than merely browsing through a stack of old receipts.
Build credit history for your business. Establishing a separate credit history for the company is a must for all entrepreneurs. As the business grows, building your corporate credit prepares you business loans that you may need to obtain in the future. Using your business credit card and keeping up with your payments helps you build up a more impressive business credit.
Monitor your employees’ spending. Supplementary cards or extension cards can also be distributed to your selected employees. This gives them the option to charge expenses to your business account at any time. Since all charges would be reflected in your monthly billing statement, you can keep track of your employee’s spending and make sure that all charges are officially for business.
Enjoy incentives and rewards. Today, small business credit cards are not just used for paying bills. They’re also a great way to get more from your business spending. How is this possible? By choosing a credit card for business with the right rewards program.
Business credit cards with rewards give you the chance to earn points each time you charge purchases to your card. Some rewards business credit cards offer cash backs, gas rebates, and travel bonuses. Using your reward credit card to shop from affiliate merchants also enable you to get discounts and free services. This is certainly an opportunity that business owners must grab.
Shop safely and conveniently with a business credit card. Compared to using cash or issuing checks, paying with a credit card is more efficient. In case your card gets misplaced or stolen, all you have to is call up your bank and freeze your account to avoid unauthorized charges.
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ABOUT THE AUTHOR
Pamela Williams is a Loan Consultant, Internet Marketer, Writer and owner of BusinessCreditCardSite.com, a finance company in Las Vegas, Nevada that provides support for businesses all across the US particularly with obtaining credit cards for business. Visit http://www.businesscreditcardsite.com