As your small business grows, you may find it necessary to have employees make purchases for the company. Cash and business checks are possibilities, but both have limits and liabilities. Business credit cards can offer at least 3 great benefits:
1. Tracking Purchases is Simpler
With business credit cards, all purchases are easy to track. You can simply go online to see complete records of every transaction. When using cash and reimbursements, it can be easier for employees to fudge the numbers or make unauthorized purchases. Business credit cards can allow you to not only track all purchases but also put very specific spending and category limits on each employee, if necessary. Of course, it is important to meticulously analyze your credit card statements to make sure employees are not abusing their privileges, but credit cards make it easy to spot and correct these errors.
2. Increase Flexibility
Allowing your employees to use business credit cards provides you with greater flexibility for all your company needs. You will not have to worry about sending exact change or writing a check in hurry before sending an employee out to pick something up. Giving employees access to business credit (with specific limits) gives them more freedom to make purchases more fluidly.
3. Earn Rewards Faster
Most business credit cards allow you to earn rewards with purchases. By spreading out your credit cards among employees and allowing them to make more purchases for your company, those rewards can accrue more quickly than if employees were paying for things from petty cash or asking for reimbursements. These rewards can help put money back into your business or provide bonuses or gifts to valued employees.
While careful monitoring of all credit card records is essential, allowing your employees access to cards can help improve your business’ efficiency and profitability.