2016-12-01 00:00:00 Taxes English Find out the many advantages of using business credit cards for everyday business purchases, including simplified expense accounting. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/03/08214737/Employee-Takes-A-Receipt-For-A-Company-Purchase-Made-On-The-Corporate-Credit-Card.jpg Accounting Tip: Use a Business Credit Card for Purchases

Accounting Tip: Use a Business Credit Card for Purchases

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Business credit cards can be critical for businesses that need a flexible and reliable source of credit to meet their short-term financing needs. However, using a business credit card for business purchases can help a business in many other ways:

  • Separate business and personal finances: Keeping business and personal finances separate can simplify expense record keeping and eliminate potential problems when filing taxes.

  • Expense control: Business credit cards have built in tracking and control mechanisms for employee spending. Businesses can set individual spending limits and track spending in real time through their online account.

  • Cash flow management: Using a credit card’s billing cycle to float expenses can keep more money working in the business.

  • Streamline expense accounting: Business credit card purchases create multiple records automatically through transaction reports and online statements which can be uploaded to a business accounting software program such as QuickBooks.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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