Business credit cards can be an excellent cash management solution for your business. They can give you added control for your business, improve your cash flow, and enhance the way you manage your business finances. However, it is important to know how to manage your business credit card. CB&S Bank has 7 tips on how to manage your business credit card:
- Try not to mix your business and personal credit cards—If you're using your personal credit card for business matters, it may be a good idea to obtain a business credit card. Having a credit card specifically for your business will help you to monitor any business expenses you may have and to help keep tax filing easier.
- Determine which credit card is right for your business—When looking for a business credit card, take the time to shop around and compare different features of all of the various types of business credit cards out there. Choose the card that will be the most beneficial for your business's needs.
- Be sure to make regular monthly payments—It's best to pay your credit card balance in full every month if you are financially able to do so. If you are not, try to at least pay the minimum amount each month and be sure to make every payment. By doing this you will not have to pay late fees or compromise your credit score.
- Review all of your statements—This one may seem like a no-brainer, however it is important that you study all of your statements. Check them and then double-check them. If you are on top of your statements, you may be able to notice any inaccurate charges before it becomes a bigger issue.
- Take advantage of your credit card rewards—It would be a good idea if you have a business credit card to take advantage of your credit card rewards. Some common credit card rewards benefits include extended warranty coverage, free or discounted office supplies, damage and theft protection, free or discounted office equipment, and even travel rewards, such as, free checked bags, airline tickets, mileage, discounts on in-flight food, discounts on in-flight entertainment and priority service. Some credit card companies even offer cash back rewards.
- Use reporting features—A lot of business credit cards offer a variety of reporting features. Be sure to take advantage of these.
- Take precautions if you give your employees a business credit card—If you have employees who are required to make a lot of business purchases, it may be a good idea to give them a business credit card to use. However, if you do give your employees a business credit card, try to make wise decisions. It's not a bad idea to employ a written policy for those employees. Create guidelines for business credit card usage and create thresholds that the employee cannot go over without prior authorization.