Simplify your bookkeeping with a small business credit card

By Ben Woolsey

There are many advantages that a small business credit card can have for the small business owner. Not only are the special rewards that small business credit cards offer beneficial, it is a way to simplify your bookkeeping.

You cannot overlook the advantage a small business credit card can have on your bookkeeping. First, all your business charges can be put on one credit card. This enables you keep track of your business purchases and keeps your business and personal credit card purchases separate, a must for the small home-based business or for a Fortune 500 company.

Small business credit cards also give you monthly, quarterly, and annual itemized statements. With this benefit you don’t need to track down or keep every little receipt. At tax time, you will be able to take this information to your accountant or CPA, saving you both time and money. Some of these reports even will automatically categorize your purchases based on common tax return requirements such as Entertainment, Office Supplies, Postage & Shipping -- another time-saving tool.

Small business credit cards offer many rewards as well that are of great use to small business owners. Many small business credit cards offer travel rewards while others offer cash back options. Depending on your type of business needs you can decide which is best for your business.

Small business credit cards for the entertaining type
If you the type of business owner that purchases a lot of office equipment or needs to entertain clients regularly, you might consider a small business credit card that offers a cash back reward. These credit cards allow you to earn money on certain purchases. Since small business credit cards are tailored to small business owners, many of the rewards are based on office purchases. An example is the Discover Card, which gives you a percentage back for every dollar that you spend.

Small business credit cards for the traveling type
There are many credit cards that give you traveling rewards. A good example of this is the American Express Card. With an American Express Card, you get these rewards when traveling with your American Express Card:

• Automatic travel insurance
• Baggage protection
• Optional traveling benefits, including rental car protection insurance

There are other benefits to this credit card, but this kind of card is tailored specifically for the business owner that travels. There are small business credit cards available from many of the credit card companies that are linked to frequent flier programs. So, that is something a small business owner who travels might want to look into.

Small business credit cards for those that carry balances
If you are a business owner that tends to carry a balance or need to pay bills based on customer invoicing cycles, you might look into a small business credit card with a low interest rate. Some credit cards to consider are Visa or MasterCard. Some small business credit cards give you an introductory 0 percent APR. You may look into these for short-term relief of business debt. This can also give you the breathing room that you need to pay off debt or an influx of cash to get your business off the ground.

Published: September 22, 2005

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