The small business owner can reap a host of benefits from small business credit cards. From rewards to having a ready line of credit and the ability to manage cash flow small business credit cards have been a lifesaver to business owners. One very important benefit of these cards though is the ability to simplify bookkeeping and streamline the efficiency of the accounting department.
This important area in any small business cannot be neglected or mismanaged and small business credit cards will make the task a whole lot easier especially if you are forced to do the bookkeeping yourself as the owner. To accomplish this you have to place all your purchases on one credit card so that you can easily keep track of your purchases even if you misplace receipts. Placing all your purchases on the business credit card will also free you from the temptation to mix your business and personal expenses.
The monthly, quarterly and annual itemized statements that you will receive will save you the burden of tracking down receipts especially when the time comes to file your taxes. The best part is that with some providers electronic reports are provided that you can easily import into your accounting software. Doing your taxes will be less strain on you and your CPA since you will be able to categorize your purchases based on tax return requirements which is a huge time saver!
Knowing that your bookkeeping will be under control you can now focus on the type of rewards that you want to get out of your business credit card. There are cash back rewards options, travel rewards and a host of others all based on your business needs. Figure out the rewards that will most benefit your business and choose the card that best meets those needs.
Small business credit cards with cash back rewards
Cash back rewards are good option if you need to purchase a lot of supplies and other miscellaneous products for your business. Your cash back earnings might be significantly higher on the office products that you purchase since the cards are designed for business owners and the purchases that they make for the business. Other purchases might attract a lower cash back incentive however the earnings will still be viable way to save on your business expenditures.
Small business credit cards with travel rewards
If you have to travel a lot for business then the airline rewards are the way to go. You will save money on your flights, fly in style and comfort, earn rewards that you can use for discounted tickets, free flights or upgrades and be eligible for automatic travel insurance and baggage protection. There are a number of other great travel benefits to be had if you take the time to compare the programs.
Small business credit cards with low interest rates
Rewards are great but a lot of reward cards come with high interest rates which is not good if you cannot afford to pay off your balance on every statement. This is where a small business credit card with low interest rates trumps all the other reward credit cards. You will be able to carrying over your balance with the comfort in knowing that you are not paying excessive finance charges. Some of the cards have low introductory interest rates which will go up after the end of the promotional period while others offer low interest rates for a longer term. Either way keep the account in good standing in order to maintain your low rates.