Using Small Business Credit Cards to Manage your Business

By: David Hall

Operating a small business for success requires that you maintain accurate record keeping. Always use a business credit card to make purchases to avoid mingling of personal expenses with business expenses. One of the main features of a business credit card is that it produces a monthly statement showing all business transactions. The business owners will have more time managing the business instead of wasting time sorting out expenses or wondering if any item was missed or lost. This statement listing all categorized expenditure is very important in filing business income tax.

Never use a personal credit card to make business purchases. This will create inaccuracies in your reporting and poor business management. To develop a successful company requires the small business owner to keep accurate records. Therefore, utilization of the monthly statement is vital to the business success.

Small business owners should maintain accurate business records while operating their business. They should use the monthly statement to track and analyze business expenses. With the help of this statement, business owners are able to cut expenses, set employee expense limit and make improvements where needed. Knowing where monies are spent enables small business owners to manage their business wisely.

Features are similar features to a standard credit card such as low interest rates, 0% introductory APR, cash back, no annual fees etc. But business credit cards offer a higher credit limit which is necessary to make big ticket item purchases. Small business owners are able to get a better discount than someone using a standard credit card. This is due to the small business owners leveraging their buying power by making purchases as a group or buying in bulk.

There are additional features such as itemized employee statement, online account management, higher credit limit and more. Small business credit card provides access to a credit line, which is used to purchase airline tickets, office supplies, gasoline etc. Credit card activities are reported to the credit bureaus namely Equifax Experian, and Trans Union. Therefore, making credit card payments on time is essential.

Since there are differences between business credit cards it is important to do some research. Getting the right credit card that meets the needs of the business will result in extra savings for the company. For example, if you have employees travel a lot; apply for the credit card that offers frequent flyer miles rewards and bonuses that can be used to get free tickets.

Business owners should know about the features offered and read the terms and conditions before applying for a business credit card. Knowing about the penalties, consequences in making late payments and who is responsible for fraud and theft is very important. The small business owners are generally a sole proprietorship, meaning they are the ones responsible for the credit received.

Visit David Hall's website offers links to credit card application for the best credit cards online. Apply today! This article is free to publish in its entirety and must include all links:

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