Many corporations use credit cards for their executives in order to keep track of spending. It is necessary that each executive use the card instead of constantly going for a voucher every time they need money for an important expenditure. This helps to cut down on the bookkeeping in the accounting department. This new wave of providing an allowance for the executives in corporations has become wide spread making it the most popular method. Small business often uses the Business Card to help with the cost of supplies.
The smaller business’s use the business credit card for their business in order to buy supplies much like the corporations they need to keep track of their spending but usually have a very good handle on their expenses and the credit card companies give them a limit that they are not able to exceed. It is the corporations that need the business credit card because they have many executives and sales people who need funding for travel, supplies, hotels, restaurants and entertaining clients which makes it highly impossible for the accounting department to keep track. The larger the corporation the more credit cards are issued. The corporations are still able to keep track of expenditures of their company employees with a business credit card since each employee has a credit limit set according to their allowance for expenditures.
Most executives need to be able to pay for airline trips, hotel rooms, plus office supplies and other incidentals throughout the year. The office manager usually keeps an ongoing balance sheet to make sure that the executive department does not over spend. The credit companies usually send out statements to the one who is in charge of expenditures with itemized list each month this system of checks and balances helps keep the budget intact. This is the reason that most corporations like the use of the business credit card.