We love credit cards, don’t you? They make buying stuff so much easier. Just whip out your credit card and shop, shop, shop! But when it’s time to clear the payments, we hate credit cards; simply because you ended up buying more than you needed. Now that’s on the personal front; what about business credit cards? If you run a small business, do you or do you not need a business credit card? Let us find out.
- Do You Make Frequent Business Purchases?– If you find yourself making business purchases on your personal credit card regularly, it is time you get a business credit card. Bookkeeping and accounting is also easier with business credit cards as these cards can be linked to your small business bookkeeping account and purchases updated immediately.
- Do You Want To Build Credit For Your Business?– Some credit cards will report your account to business credit bureaus, so if you want to build credit for your business, this is an option. Thoroughly research banks and their credit card options for small business bookkeeping, choose the right card and build credit for your business. Personal credit cards cannot build credit for businesses.
- Do You Want To Calculate Interest On Business Purchases For Tax Deductions?– Interest charged on business purchases is tax deductible. Calculating interest on business purchases for tax purposes when using a personal credit card is not easy. So if you would like to make the best of the tax options available to your small business, it would be a good idea to get a business credit card.
Credit cards are a boon and a bane, but they go a long way in making life easier for business owners and for small business bookkeeping purposes. If you feel it is about time you got a business credit card, well go right ahead and get one; but be careful how you use it especially if you have a history of overspending.