Whether you’re starting a new business or are just now getting a credit card for your company, you will need to carefully manage how you use it. It is a good idea to use your business card vs. your personal credit card for business transactions. There are many benefits to consider that come along with using business credit cards:
- When using your business card you can build credit for your company. Just like with your personal credit, your business gets a new start. So when you first get your credit card, make sure to not abuse it. The better your manage it, the more capital you’ll be able to achieve later on – this could come in the form of a loan or credit line. You will definitely probably need this later on if you would like to expand your business ventures.
- At the end of each year, businesses are required to track their company expenditures, which can be a huge hassle for small businesses and start-ups. By using your business credit card can help to keep track. At the end of the year, your credit card company will send you a statement that summarizes itemized transactions charged to your credit card. With this, there is no need to try to keep all of your receipts – equaling less hassle and more benefits when you use your business credit card.
- By using your business credit shows the IRS and everyone else that you are serious about your small or start-up business. Avoid mixing your business and personal transactions together because it will cause tax and money management issues later on.
- Besides gaining credit, you can also gain rewards for using your business credit card. You can receive rewards and discounts for travel, supplies, software and phone/internet services. With this available, the more you use your card, the better.
- Giving your employees access to your business credit can be made easy with the preset limits you can place on them. Even with that advantage over their spending, you should still keep an eye on the statements.
Having a business credit card is very helpful for growing any type of business. Use it to help you build credit for later use. Start-ups and small businesses will be able to grow substantially if given the right funding, so begin the process of getting props for your good money and credit card management.
Keep in mind that owning credit cards means being very diligent in maintaining your finances. Don’t ever use it for personal purchases because this could get you in trouble when it comes time to file your taxes. Always keep your business and personal affairs seperated.
To better help with savings, you can always look for deals online at Groupon. Here, you can find coupons from hundreds of merchants for thousands of products and services. For instance, you can book your business meetings at places like Crowne Plaza Hotels & Resorts for cheaper just by using Groupon.