It is the time to learn the 6 steps to effective small business credit card management since the growing popularity of small business credit cards and ever changing interest rates.
For small business we’ve entered into a new age of credit. New opportunities apply but credit debt still needs to be approached with caution. Over 2/3 of small businesses use a credit card for expenses with only 40% using a business credit card exclusively, as indicated by a Tower Group report. Use a small business credit card over a personal card is necessary or not?
Your small business credit card can provide many benefits including with prudent use and management:
Small Business Credit Cards’ Features
- Avoid Co-mingling: Create potential tax and money management problems by mixing your business and personal transactions. You will let the IRS and anyone else know you are serious about your business by using a small business credit card,.
- Easy Itemization: For small business owners tracking your business expenditures at year-end can be a nightmare. Many credit card companies will provide you with a year-end statement summary with your transactions itemized and categorized. Why worry about a shoebox full of receipts? With a small business credit card you can organize your bookkeeping process.
- Build Business Credit: A newly established business the opportunity provided by a small business credit card can build business credit. As your business grows and you need capital in the form of credit lines or loans you will find this will be useful.
- Special Rewards: The development of reward and discount programs for small business credit card users was developed by the competitive credit card and business market. Discounts and rewards range from office supplies and travel to software and phone services. Take advantage of using the credit card to lower your expenses.
- Manage Employee Spending: The ability to provide cards for your employees with preset limits is another plus to small business credit cards. People can monitor their spending on the separate statements you receive.