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Thursday, November 24, 2011

Why Your Company Should Use A Business Credit Card

By Brian Spetch


Nearly every individual makes purchases with a plastic card at some point or other. Yet did you know that you can also get a business credit card if you have your own organization? Business charge cards not merely make it easy for you to purchase supplies and services, but they also help to streamline your business and accounting procedures - specially in small businesses, where man-power is limited and purchases might be frequent.

How to Use It

Business credit cards are being used just like any other bank card. Should you apply to get a small company credit card, you'll be asked exactly what title should show on the face of the card. Numerous small business proprietors will print their own names, specially if they are the major purchaser. However, if you have an engaged team of regular shoppers, you may want to consider either imprinting the company title on the credit card or obtaining a business credit card for each of your team members to use at his or her discretion.

How Company Credit Cards Can Be Of Help

All businesses are accountable to the authorities for tax reasons and are accountable to themselves for revenue and cost computations. In the days when most purchases were made with cash, the accounting departments of big organizations had to invest the bulk of their time searching out wads of bills and purchase orders. However, when business bank cards hit the market, credit card providers made it possible for accountants to streamline the record-keeping procedure. Small businesses benefit from utilizing small business credit cards particularly well because most smaller businesses do not have the resources to enlist a team of accountants to sort out expenses. Once you sign up for a business credit card program, you will not only get itemized monthly statements, but some credit card companies even go so far as to classify your purchases to help you more effortlessly monitor spending. How's that with regard to customer service?

Taxation

Not merely will your accounting division value the implementation of small business credit cards on a continuous basis, but they will be especially appreciative during tax time. While it's nonetheless a good idea to retain invoices of purchases in case your small company should find yourself getting audited by the Government, possessing a small business credit card will assist you to correctly file your taxes. You'll be able to be able to effectively pull together spending figures. While many CPA's question whether The government will accept a straightforward bank card statement as proof of a business-related purchase, at least you've some sort of evidence of any purchase, even if you have lost a bill.

Employing a business credit card is not only a strategic move for any enterprise, but the cards are also becoming ubiquitous. Particularly if you have a small company, instead of have your employees charge their purchases to their own personal cards or (even worse) pay with cash, consider investing in a small business credit card. Most companies offer low-interest, free business cards to firms with a sound credit history.




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