Advantages of Small Business Credit Cards

Avoid Co-mingling: Mixing your business and personal transactions creates potential tax and money management problems. By using a small business credit card, you will let the IRS and anyone else know you are serious about your business.

Easy Itemization: Tracking your business expenditures at year-end can be a nightmare for small business owners. Many credit card companies will provide you with a year-end statement summary with your transactions itemized and categorized. Why worry worry about a shoebox full of receipts? Organize your bookkeeping process with a small business credit card.

Build Business Credit: A small business credit card provides a newly established business the opportunity to build business credit. This will be useful in the future as your business grows and you need capital in the form of credit lines or loans.

Special Rewards: The competitive credit card and business market has led to the development of reward and discount programs for small business credit card users. 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: Another plus to small business credit cards is the ability to provide cards for your employees with preset limits. Just make sure you monitor their spending on the separate statements you receive.

A small business credit card is like most financial instruments – responsible use of credit can help your business – misuse of your business credit makes you personally liable in most cases and has the potential to destroy your business and dreams. Use these small business credit card tips to effectively manage your credit.

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