‘Yes’ -is the answer that’s comes out almost immediately. That is true at least for most businesses (especially small businesses). Before we delve deeper into how
business credit cards are helpful, let’s try and understand what a business
credit card is.
Put simply, a business credit card is a credit card that is owned by a business and not an individual. To understand this better, you can simply draw an analogy between the business credit cards and business bank accounts, which are in the name of the business as well. Other than that, business credit cards work in pretty much the same fashion as the personal credit cards; with a few exceptions. These exceptions are in the form of flexibility in credit limit, low APRs and some other additional benefits that are available to business credit cards only.
Even from just that, business credit cards seem a good proposition. However, business credit cards would be attractive even without those benefits because the main benefit lies elsewhere. The big-big benefit from a business credit card is realized in terms of business expense accounting. For most small businesses, business expense accounting is a big overhead. With business credit cards, this is handled very easily - you just have to ensure that you make all your business expenses on your business credit card and let the personal expenses be on the personal credit card i.e. segregation of business and personal expenses is all you need to do. So the bill for your business credit card will have all the business expenses on it and you wouldn’t need to collate all the various bills or sort out the items from your personal credit card bill.
The key here is to make sure that you use your business credit card for all your business expenses (or as much as you can). Moreover, a lot of business credit card suppliers realize this need of small business and even organize the business credit card bills in a way that meets the accounting requirements of these businesses. So mostly, they will appropriately group the expenses on the business credit card bill so as to facilitate business expense accounting. In fact, some of the business credit card suppliers go to an extent of providing the bills in a format that can be downloaded and exported to an accounting system i.e. you don’t need to enter the data manually in your accounting system. In case the format is not suitable for your accounting system, you can hire a software professional to write a small quick program to convert it into a suitable format.
Thus just one reason - ‘facilitation of business expense accounting’, is enough to support the case of small business credit cards.
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Personal credit cards are the most carried credit cards found today. But the benefits of
business credit cards are largely misunderstood by the general public. The advantages of a business
credit card are numerous and can include access to car insurance, free travel, higher credit limits and much, much more. Another advantage of some business credit cards is that they will allow you to keep your personal and business expenditures separate while simultaneously enjoying the benefits of the corresponding reward programs.
Small businesses, in particular, have discovered that maintaining a company credit card can help in expensing daily purchase items very easily. With the advent of the Internet, applying for a business credit card, whether you are a small business owner or an employee of a large corporation, is very easy.
There are a number of advantages that are found in business credit cards today that often times personal credit cards will not offer.
Business credit cards offer additional benefits that include expense management reporting that small businesses in particular find very useful. When comparing business credit cards side by side, several of the very best cards allow cardholders to create customized reports with online expense managment tools. This gives business owners the ability to login to their accounts at any time to review and download expense activity anywhere that Internet access is available. You can view recent account activity, pay your bill online, check on reward points, and even receive account alerts by e-mail, cell phone, PDA or pager notification. Accounts can be setup to pay expenses and ongoing bills automatically with a commonly used Bill-Pay option offered by a few of the leading card issuing companies.
Several card offers also feature the ability to download and integrate card statement information directly into QuickBooks, a commonly used accounting program for small business owners. If cardholders ever need to dispute a questionable charge, it can be done online or over the phone with no paperwork. Lastly, many business credit cards offer the ability to access credit lines from their existing account that provides significant financing flexibility for short-term cash requirements that will not require collateral as would a traditional bank loan.
In addition to this, many small business credit cards also offer significant reward programs that include cash back rebates, office supply and merchant discounts and air & travel rewards.
Applying for a business credit card can be done in 3 easy steps. First, applicants should take the time to search and compare the variety of business credit cards online utilizing the Internet where consumers can find a vast array of resource and comparison sites to aid in the selection process. After thoroughly comparing offers and selecting a card based on your specific criteria, cardholders can simply and easily apply for the selected credit card by filling out an online credit card application. Credit card issuers offer a safe and secure environment for cardholders applying online, which also allows cardholders to expedite the application process without any significant delays.
For more about business credit cards, Robert Alan recommends that you visit CreditCardAssist.com
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