There are so many business credit cards in the business. Most of them have spectacular features to match every type of business. But getting the best business credit card is not the only thing to consider. Learning how to use your business credit card wisely should be a must for every business credit card holder.
Here are a few tips on how to get the most benefits of your business credit card:
Control Your Spending. Using a credit card gives you the option to buy things instantly without holding the cash in your hands. Usually, everyone has the tendency to buy more than what they can actually pay. Remember, even though you’re not paying it in cash right away, you will still be paying it back one time or another. Watch out for unnecessary purchases and splurges. Make sure that you’re only using your business credit card for business purposes and that everything spent is needed for the business, not desired or wanted.
Pay Promptly. As mentioned above, you will be paying for those purchases. Most credit card holders choose a monthly mode of payment because it’s more convenient in the budget while others opt for annual mode. Whichever mode you prefer, always, always pay off your balance on or before its due date. Or else, you will be charged additional fees on the interest, late payment penalties, and other excess charges. You’ll actually end up paying for more than you bargained for. Even worse, if you don’t pay your bills all the time, you may be caught on unpaid debts and bad credit. Don’t put yourself in that stressful situation. Pay your bills on time. If you have the extra money and you can afford to shell out more, make an advance payment for your next statement. This way, you can be sure that you’re not piling up bills and that you’re maintaining an excellent credit rating.
Manage Your Expenses. One great feature of a business credit card is the statement of accounts report. This is a detailed record of all your purchases made, including category breakdowns for each type of spending. For example, travel expenses and office supply expenses are separated for easier checking. These statements are sent monthly and annually for better accounting and preparing of tax payments. Also, these statements of accounts can be directly downloaded from the internet. In fact, most businesses that use accounting software like QuickBooks prefer to download their statement of accounts online.
Keep Track of Your Staff Expenses. Business credit cards give you the option to provide your employees with their business credit card. You can set their own credit limit and will be able to keep track of their expenses. All purchases made using their own business credit card will reflect on the statement of accounts, including the type of charge made and the date of purchase. This way, you can be sure that all your business money is properly spent and nothing is wasted on personal gains.