We often hear the advantages of using business credit cards for business
. But the benefits you earn also depend on how well you use them. This article contains useful business credit card tips that are especially meant for business owners like you:
1.Apply from your personal bank. Getting a business credit card from your personal bank can give you a faster approval with your application. If you haven"t yet established your business credit, your personal credit history will be used instead. Applying with bank who has had you as client for a long time will work well in your favor.
2.Don"t get too many business credit cards. One or two should be enough for you to use with your business. Not only does managing multiple credit cards difficult, it also puts you at a greater risk of bad credit.
3.Use your business credit card for all your business expenses. Some entrepreneurs use their personal credit cards with their business purchases but it is wise to stick with your business credit card instead. Even if you"re running a homebased business, it"s best to separate your personal finances from your business account. In addition, your business statement of accounts will be a big help in doing your accounting tasks and in filing your taxes.
4.Use your yearly summary as reference to your bookkeeping. The yearly summary of account provided by your credit card issuer will come in handy in your bookkeeping tasks.
5.Use your business credit card wisely. Just because you have a business credit card on hand doesn"t mean you shouldn"t watch on your spending. Make sure that everything you charge on your business credit card is really important for your business.
6.Make the most of your rewards. Take advantage of the rewards you can get from your business credit card by choosing a card with the right reward program. Make sure that the business credit card you"ll get matches with the needs of your business.
7.Distribute supplementary cards to your employees. Because all purchases charged to your business credit card will be reflected in your statement of account, you"ll have more control on your employee"s expenses.
8.Pay off your bills before the grace period. Usually, a business credit card will extend up to a 21-day grace period before you incur the interest rate. To save your finances, make it a point to submit your payment before you date to avoid the interest rate completely.
9. Check your business account regularly. Always check your business account for accuracy and make sure that all the charges are accurate. Generally, business credit cards provide business owners an online access to their accounts so you can check them right from your desk.
10.Avoid cash advances from your business credit card. Cash advances are not covered by the grace period so you instantly incur the interest rate the moment you take out the cash. You might as well charge it to your account and pay it back before your due date of payment.