Small business owners fail to understand the advantages of having a separate business credit card account. They often use their personal credit cards for business purposes. Most of them are actually afraid of huge credit debt that may result due to business related purchases. However, this can be avoided with some proper credit card management strategies. On the other hand, the advantages using small business credit cards are immense. First and foremost, you can easily track each expense if done by a single card. For example, you deal with cleaning and sanitation products and make your payments with the business credit card. It becomes easy for you to keep a track of the purchases and expenses. In fact, referring to your card statement once in a month will give you all the required details. What else! Such debt can be repaid simply by giving one cheque in a month.
When you maintain a separate card for your business, chances are high that it will not be mixed with your personal transactions. In fact, co-mingling personal and business expenses can call for huge tax bills and other money management problems.
As said earlier, using separate cards for your company helps you to keep a track of your business related expenses. This information comes handy while filing your year-end tax file. All you need to do is ask your credit card prover to give a year-end card statement summary. Some of them also itemized such transactions. And there is no need to go through the huge and tiresome bookkeeping process anymore.
Having a business credit card account enables you to provide similar cards to the employees. Moreover, you can preset the maximum limits on these cards. This will save the time which is otherwise wasted when your office manager has to wait for your approval for purchasing certain office supplies. However, remember to monitor their spending and ask for separate statements for such purchases.
There are several credit card companies that offer that offer discounts and other reward programs, especially for small business owners, as a part of their promotional strategies. Use them for your advantage. See which are the companies that are offering such services and use them to buy your office supplies, software and other equipments.
You can also use these cards for your business related travels and cut your expenses considerably. In fact, some of these credit card providers give additional travel benefits to small entrepreneurs. Try to add as many business related travel arrangements as possible to avail such benefits. Apart from discounts and other monetary benefits, some of them also offer accident insurance coverage during your tour or assistance during emergency.
Finally, such cards help the new entrepreneurs to develop their business credit with much ease. They can also help in the overall growth of your business. One who pays his/ her credit card debts on-time and has never been a defaulter, can use the statements for future endeavors in terms of loans and other credit lines.