Guest Post - Paul Falewicz - Succentrix Business Advisors
This is a guest post; I had asked Paul Falewicz from Succentrix Business Advisors Billerica to submit a guest post for this blog to talk about why a business credit card is good for your business.
The easiest way to pay your bills is with a credit card. It is very convenient, but it comes with many options that should be carefully considered.
If you are a business owner, I highly recommend having a credit card to pay for the expenses of running the business. You should try to obtain a credit card in the name of the business so that you can help to build credit for your business as you expand operations.
But if you are not able to get a card in the business name, the next best step is to have a card that is 100% dedicated to your business. Only business expenses are put on the card and it is an easy way to keep track of your costs associated with the business.
You should avoid mixing personal and business expenses on the same credit card. It will be very confusing and at the end of the year, you will spend time searching through receipts to figure out which expenses are business related and which ones are for your household.
It doesn’t hurt to find a card with a reward that you can use in the future. There are plenty of rewards for credit card spending but choose carefully to find one that can help the business. Pick a card with airline miles if your business needs to travel. Find a card with cash back if you want to reduce your balance each month with the spending.
If you or your business doesn’t have strong enough credit, a debit card from your bank account is an alternative. You just need to be careful using the debit card as it will sometimes lock your account.
When you add gas to your car with a debit card, most gas stations put a hold of double or triple the amount that you expect to spend on your card. That will tie up your credit for the account for a couple of days until the transaction officially clears the bank. It may prevent another purchase as it may show that you don’t have enough in your bank account to cover all of the purchases.
As a business owner, you need to review your expenses on your statement on a monthly basis. You need to double check that all of the transactions on your statement relate to purchases you made. Hackers are always looking to steal your information and make unauthorized purchases with your information. You should set up alerts for spending and always be diligent in making sure your information is not compromised.
Having a credit card for your business is a solid business decision. It will help to streamline your purchasing power and put everything in one place. Remember to take precautions to protect your information and pay your bill within the terms of the card agreement.
If you have any business questions and would like some assistance please be sure to contact Paul Falewicz directly.
Succentrix Business Adivsors Billerica
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DISCLAIMER: This advice is general in nature and not to be taken as personal professional advice. This blog does not provide legal advice if you need legal advice, please contact an attorney directly.