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NEW YORK (MarketWatch) — Owning a credit card for your business comes with certain advantages. In fact, as your business grows using one can become necessary for saving you both time and money.
Here some benefits of a business credit card:
Keeps personal and business expenses separate. The credit card will only be used for business-related expenses, so when a statement comes it will be easy to review. You won’t need to do any tedious highlighting or underlining of expenses that don’t belong in your business records.
Makes tracking employee spending easier. Many small businesses are set up so the owner needs to give approval on every transaction before payment is made. This not only slows the process of making routine purchases and paying bills but also means that you need to be on call for your signature. A better way to keep track of spending is to issue individual cards to each employee and link them to your business account. On your billing statement, the transactions will be itemized and divided based on each employee’s individual purchases. Not only does this make it easier to view, but if any employees are big spenders you will catch it fast.
Financial statements to stay organized. Credit-card companies routinely generate a variety of different reports for business customers, including quarterly and annual statements that break down your spending. Among other things, it will make life much easier around tax time. Instead of digging up old receipts, you can just send your accountant a printout.
By Marshall Loeb, MarketWatch
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