Despite all of the negative stigma surrounding credit cards, businesses experience many benefits from using them. If used correctly, the advantages of using business credit cards will far outweigh the disadvantages.
Bookkeeping - The most obvious benefit of using a business credit card is making your business finances easier to manage. Use a single credit card for all purchases and expenses, and you'll have a paper record of transactions each month when your credit card statement comes in. If you have employees who make purchases for the business, they can be assigned their own credit card on the same account, yet all of the transactions will be on the same monthly credit card statement.
Tax Records - Many credit cards will categorize your expenses for you on the monthly statement. This makes filing your taxes a breeze, and provides all of the information your accountant or bookkeeper will need regarding your expenses and purchases at tax time.
Rewards - Business credit cards often provide rewards programs. If you travel frequently, you can save money on travel related expenses when you use a card with a travel rewards program. If you purchase office supplies regularly, a cash back credit card or a card offering discounts at your favorite vendor can help you keep more of your money in your pocket.
Business Gifts - When you take advantage of credit card rewards programs, you can use your earned rewards as gifts for employees or clients. This reduces the budget you need for gifts and helps stretch your money further.
Pocket Advertisements - If you select a credit card that is customizable with your business name and logo, every time you use the card to pay for a purchase you are getting your company name and brand in front of potential customers.
Personal Assistant - With a concierge service, you may not need a personal assistant on payroll! Many business credit cards offer a concierge/personal assistant service 24 hours a day, 7 days a week. There is a phone number on the back of your card that you can call and get help with driving directions, travel arrangements, last minute reservations and purchases.
Additional Travel Benefits - Many credit cards provide additional travel benefits when you book your travel arrangements with your card at no additional cost to you. Even if you only travel once in awhile, a card that offers travel accident insurance, lost baggage insurance and emergency travel assistance can save you hundreds or thousands of dollars if you ever need to use these benefits.
Small business owners often decide they don't need a credit card to run their business. The reality is, if you use a credit card properly and pay your balance off in full each month, you'll experience a number of benefits you simply do not have when you pay for everything with cash or check. Before you decide that a business credit card is not for you, consider the extra perks of using one to see if they can benefit your business.
