If you don’t already have a business credit card, you’re not going to want to miss this post. One little card can have a large impact on how you run your business, from bookkeeping to enjoying special perks. What important advantages are you missing out on?
A Stolen Card Won’t Drain Your Account
One day you’re flipping through your wallet to get your business debit card. Your heart sinks into your gut as you realize… it’s not there. Did it fall out? Was it stolen? Is someone siphoning hundreds or thousands of dollars from your account this very moment, cackling maniacally? Your bank might have some protection against fraudulent transactions in the case of debit card theft, but with a debit card that money is sucked from your account long before any resolution is processed. This could cause checks to bounce, automated transactions to be denied, or put you in a rough spot for a needed purchase.
No Risk Of Overdrawing Your Account On Big Purchases
Another benefit of using a business credit card over a debit card is that you don’t risk having your account overdrawn. This is even more important if you’re using a personal account for all expenses. Costs add up, and you may not realize that your account doesn’t have enough funds for a big purchase. Some business credit cards even allow you to spend over your credit limit without incurring a fee.
Prevent Commingling Of Expenses
Tracking your business and personal expenses separately is a great alternative to Tylenol during tax time. With a designated credit card, you can easily see every business expense you’ve made through the year. Help your bookkeeper help you pay the least amount of taxes possible. It’s what we’re here for! Oh – and if you do end up getting audited, having this record will be a godsend.
Get Those Special Perks
There are some sweet, sweet perks to having a business credit card that you’ll want to take advantage of. The possibilities are vast. You can earn cash back, get extra points for gas or office supply purchases, earn travel rewards, and collect signing bonuses to name a few. A lot of business credit cards also provide higher credit limits than personal cards, which is a necessity if you need to make a lot of large purchases.
Build Some Much Needed Business Credit
One day in the future you might need to take out a business loan or other financing option. You’ll need a good credit history for your business to qualify, which will be separate from your personal credit score. A designated credit card is the best way to build good credit under your business name. This is something that shouldn’t be overlooked if you’re looking toward the future!
Getting a business credit card is a milestone step – something that’s necessary to run a successful and responsible business. And it’s easy, too! Now go get that shiny new card in your hand.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
