April 2,2009
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Small Business Credit Cards, Pt.2
Excellent for managing your business.Speaking of business-type expenses. Of course it's very convenient to have business expenses inherently separated from personal expenses, as business credit cards provide. But, it can be more than just a convenience. When it comes tax time, if you submit your tax info to a professional preparer with a mixed credit card account, that person wouldn't know which was which when reporting business expenses. Even more importantly, neither would the IRS. When it comes to tax reporting, business credit card documentation provides a one-stop shopping for information, data and proof.
As you build your business, large purchases can become Capital while the credit you used becomes only Accounts Payable. (Always keep in mind, though, that you are also personally accountable. Credit card lenders love it because they can get you both ways. Be responsible). When it comes to management, this is one place where business credit cards start to shine. Management tools on line are robust and powerful. To an extent, you can actually run custom reports. Great for presentations, quarterly reports and bank loans.
If you have employees, you can even provide additional individual credit cards which can be regulated in scope and authority (like for buying fuel only). Again, the beauty is the automatic records keeping. Business credit card rewards programs are tough to beat, anywhere. Travel, car rental, dining, entertainment discounts are deep. Buy a lot of one thing? See if it's covered under your program. I have found that Chase and Discover are the best. That doesn't there aren't better ones out there. It just means that I was so content that I stopped looking any further.
Be business-savvy with your resources. Get the best APR and use it to counter higher APR accounts. Minimize expense overhead wherever you can. NEVER be late on a credit card payment.