Useful Benefits Of Business Credit Card For Small Business
Are business credit cards really useful in a business
? Is it really a must for a business owner to acquire a credit card for his company or is it okay to use a personal credit card instead? If you run a business, have you considered applying for a business credit card yourself? In this article, lets take a look at the reasons why business credit cards are indeed advantageous for a business.1. Separate personal and business accounts.
Using your personal credit card for your businesses expenses is not only confusing, it can also present problems when its time to do your accounting and pay your taxes. With a business credit card, all your business expenditures are immediately separated so you can easily monitor your accounts and calculate your taxes effectively.
2. More efficient bookkeeping and accounting.
A business credit card offers businesses with a quarterly and yearly summary of their accounts which is a tremendous help with the companys bookkeeping and accounting tasks. Statements of account are usually itemized according to the type of purchase made, the date, and under which category the items are listed.
3. Build Business Credit History.
Establishing a business credit for your company is indispensable as you prepare for the future. As the business begins to grow and your needs increase, having an excellent business credit will make it easy for you to acquire business loans from lenders. Without your own business credit, it would be difficult to prove your capacity as a business.
4. Reap Rewards from your Business Credit Cards.
The best business credit cards in the market provide its clients the opportunity to get more from their credit card expenses. Reward programs such as Travel Miles Program, Gas Reward Program, Cash-Rebates or Cash-Back Programs enable a business to get discounted rates with their office supplies, software, shipping, travel, and other business expenses. Aside from discounts, businesses also have the chance to collect points that are equivalent to travel, gas or cash bonuses.
5. Track Employee Spending.
Business credit cards also give additional cards or extension cards for employees which help a business owner in keeping track of his employees spending. Since all credit card charges will be reflected in the account summary, you can be sure that all charges in your business credit card are spent on official business expenses.
With all these advantages, it is therefore obvious why more and more business owners realize the efficiency of acquiring business credit cards. Keep in mind that business credit cards are not meant to replace traditional business financing aids like bank loans but they also provide additional assistance and benefits in managing your business.
If youre worried about overspending or getting stuck in bad credit, the key is to keep your expenses within your budget and to make it a habit to pay off your balances in full and on time. This way, you do not only avoid bad credit, you also build up an excellent credit history and credit score for your business.
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