Perhaps your small business has only used credit cards as an emergency form of funding. Or maybe you worry that the interest rates are too high. Yet managed correctly, business credit cards can be a great asset to your firm, even simplifying your bookkeeping and making your financial records work much more efficiently for you.
If you start making all of your business purchases with your company card, keeping track of your finances will be a piece of cake. Your monthly credit card statement will have a list of all your transactions, eliminating the need to search through mountains of receipts. It will also eradicate the confusion that can occur from putting business and personal expenditures on the same account. By using a business credit card solely for all business purchases, you won’t have to go through every statement separating company transactions from personal withdrawals.
Plus most credit card companies allow you to customize your statements to a degree, which could help you track your firm’s spending categories and see how your needs have changed over time.
Expeditious Tax Records
When it comes time for filing taxes, having all of your business expenditures in one place will make your life much easier. You can even print out your credit card statements with itemized lists of things like office supplies or travel expenses.
Monitor Employee Purchases
A business credit card account can make it easy to give employees access to company funds when needed. Individual employees can have their own cards with pre-determined limits, allowing them the ability to make necessary payments and purchases without the ability to overspend. Your statements will also make it possible to track spending by employees, making it simple to see if anyone abuses his or her privileges.
As long as you are diligent about paying off your bill in full each month, using a business credit card can be a great way to simplify your business records and centralize all expenditures into one manageable account.