Credit Card for Business

Monday, June 11, 2012 at 9:40pm by Site Administrator

Keeping Track of Your Business Credit Card Expenses

The easiest way to keep track of business expenses is with the use of a business credit card. There are certain aspects of using a business credit card that a business owner must understand for the endeavor to be successful. The number one rule of thumb is financial responsibility. Pay the credit card balance every month. If you carry a balance on a business credit card, interest can quickly cost you more money than you can save. Owners that use credit cards just like they would cash will discover that computerized bookkeeping is simple and saves time and money in the process.

Pen and Paper is an Obsolete Accounting System

The days of using pen and paper for accounting purposes have outlived their usefulness. Before the arrival of the internet, business owners used paper ledgers for account receivables, outgoing expenses and categorizing items. This outdated method of accounting is a waste of time and money and is highly inefficient compared to the advanced bookkeeping methods in use today. About the only thing that has stayed the same is keeping all business related receipts in case of an audit. Nobody has to be a computer whiz to use modern record keeping options. That is because credit card companies or business software programs does the work for you. A key factor in online or software accounting is you must use your business credit card for all business related expenses regardless of how large or small they are. In order to keep personal items separate from business expenses, never charge personal items on your business card.

Take Advantage of a Business Software Program

There are many good accounting software programs on the market. Check out several before making a purchase so you get the one that is right for your business. Quicken, Microsoft Money and Mint are only a few of the excellent programs available. Most of these programs interact with the internet allowing you to connect the program to a bank account and your business credit card account. After familiarizing yourself with your purchased program, download your credit card statement. The program automatically divides the information up into categories. Most programs file the information based on where the charge originated. If the program is not familiar with the place of purchase, it will ask you where to post the expenditure with the ability to remember it for future transactions.

Utilize Your Business Credit Card Services

If you are not sure a business software program is for you, sign up for an online service through your business credit card company. There is not much accounting for a business owner to do using a credit card accounting service. As soon as a transaction appears on your account, the information automatically goes to its proper category. Most business credit card services provide you with a yearly, quarterly or a monthly-categorized report of your account. Credit card companies explain online accounting details when you sign up for the service. Your credit card company will answer any questions you have.

Additional Benefits Received by Using a Business Credit Card

While the ability to utilize an accounting service is reason enough to use a business credit card, there are other advantages as well. You can log into your account on a daily basis. Checking your account daily allows you to detect any fraudulent purchases quickly and help prevent identity theft. Keeping an eye on your expenditures, credit limits, available cash and your line of credit enables you to notify the credit card company quickly if an unidentified source breaches your account. It permits you and your credit card company to work together to stop thieves in their tracks.

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