The best small business credit card you can own is the one that you make a profit on. How do you do this? Here are 9 simple steps that show you how.
1. No Revolving Balance. First, apply for a business credit card that you will pay off each month. You can have other credit cards in your business if you need a revolving balance but have at least one card that you pay off each month in full. You have a free 25 day grace period on purchases from your credit card company so you just bought yourself a little time.
2. Pick The Right Card. There are many offers so you want to be selective but make sure it has some kind of rewards program. There are many that will pay you 5% cash back on purchases. How much do you spend each month out of your checking account to operate your business? How many of those expenses can be paid for with your credit card? Since you will be paying the balance each month, do not worry about the interest rate.
3. Point Levels And Spending. When shopping for your rewards card consider your average monthly spending. Sometimes you are offered more generous rebates if you let your points grow. Look in your check register for a typical month and add up all the expenses that you can start paying for with your credit card. Multiply these by 12 to get an annual spend.
4. Use It For All Possible Purchases. Think of all the things you pay for each month. How many of these could you pay for with a credit card? Utilities, telephone, office supplies, equipment, legal and accounting fees, automobile expenses, meals and entertainment, and many more. Your credit card is accepted almost anywhere.
5. Bookkeeping. When using my best small business credit card method your bookkeeping expenses will be a lot cheaper. Whether you do your own accounting or pay someone to do it for you, your accounting needs will be lower. For a business credit card you will receive a summary at the end of each year with all your expenses categorized. Give this to your tax preparer.
6. Avoid Overspending. Studies show that most consumers spend more on rewards cards. There is just something about getting something for free. The best way to avoid this temptation is to develop a budget and stick to it. Homemoneyhelpcom operated by Terry Rigg is a fantastic source for free budgeting. advice.
If you choose the best small business credit card it will pay you dividends for years to come. A little time invested will be well worth it.