In a society that is so focused on using credit and charging things to credit cards, there are a lot of small companies that have sworn off the use of plastic and have decided to instead be completely cash companies. While this is a great idea in theory (not having to deal with debt is always a great idea) some of these business owners may not realize they are also cutting themselves off from some benefits that they could have enjoyed.
Before you completely ban business credit cards from your company wallet, take a look at some of the reasons you may like having one of these cards on hand.
Personal Vs. Professional Accounts – Many small businesses owners put all their finances in one account. While this may seem like a good idea at the time, it is smarter to have separate personal and business accounts for both credit scores and accounting at the end of the year. A business credit card can be a great step towards separation of the two.
Taxes – At the end of the year do you dread sorting through all the receipts to figure out what you spent and where you spent it for your business? Some of the best business credit cards take a lot of this hard work out of your hands, sending you statements that help you track the year’s expenses. If you do all of your buying on the card, it will be a one step process.
Ease of Business Operations
Purchases – If you are buying a lot of things online relating to your business, a business credit card is going to make life a lot easier. Most online vendors want you to use a credit card and are going to immensely delay your shipment if you choose to use a check or other slower method of payment.
Advertising – Want to make sure your business has a presence? You may use online advertising with companies like Google AdWords for this process. They are going to want a credit card to know you will pay your monthly fees. A business credit card is a perfect place to charge these payments and have a record of them at the end of the year.
Annual Fees – If you are going to pay off your credit card balance monthly, you should not worry so much about the interest rates, but instead focus on the rewards you can get from your business credit card. You should also make sure to try and get a no annual fee business card. You donâ€™t want to have to pay for your usage.
Rewards – While you may not need to use a credit card, why not get something back for the things you have to buy. Some of the best business credit cards have rewards that will give you cash back, gas money, miles for trips on airlines and many other rewards that can save you money on the things you would have purchased anyways.