As a new small business owner you might not have a business credit card in the name of your business. If you are still using personal credit cards to fund your business expenses you should know that there are some advantages of getting a business credit card for your business.
Before we look at the reason why your business cannot function without a small business credit here are a few reasons why business owners would be hesitant to get one.
- They are afraid of charging too much on the credit card.
- They already tried for one and were denied so they are afraid to try for another.
- The business does not have sufficient expenses to justify getting a credit card.
- They are turned off at the thought of paying high interest rates and annual fees.
- They believe that applying for the card will be too complicated.
- They would like more control over spending by approving all purchases manually.
If you are still stuck on your reasons for not getting a business credit card here are a few reasons why you need to get one for your business.
Bookkeeping is Simplified With Business Credit Cards
A lot of small business owners are saving on the cost of bookkeeping services by using their business credit cards. As long as you place all your business expenses on that one account it would provide an easy way to keep track of money spent in the business. You can get an overview of your spending by logging into your account online whenever you need to. Additionally when the statement is ready you can also import the details directly into your accounting software for easy management. Tax time will be less complicated and troublesome since you won’t have to go searching for receipts or try to remember all the purchases that you made.
Track Employee Spending Easily With Business Credit Cards
Business credit cards include the added benefit of receiving additional cards at no extra cost. You can have cards with preset limits assigned to trusted employees. By doing this you can save a lot of time and effort. For instance you won’t have to go over every t business spending. Furthermore the time that it takes to reimburse employees for their purchases or reconcile petty cash could be put to better use. Any purchases made by employees could be easily found on your credit card statement.
Business Credit Card Rewards Will Save You Money
Some business credit cards have built in rewards. Any purchases that you make with the card will most likely qualify for reward points. Depending on the program that you choose you will be able to save on airline tickets, office supplies, car rentals, hotel accommodations or get cash back rewards. Use properly reward benefits can save your business as much as $500-$700 yearly.
These are just a few benefits that can be gained with business credit cards. Worlds of opportunities open for your business when you own a business credit card. Consider your business needs carefully and think about what you want from a credit card. Do not immediately put aside the idea of a business credit card since you might be doing yourself and your business a disservice by doing so. Once you’ve had the card for a while you would wonder how you ever managed without it.