Talking Cents

5 reasons why credit cards help small businesses in Sydney make record keeping easier

Reason #1: Work is work and life is life

Small business owners know the separation of personal and business finances are crucial, and the simplest way is to obtain a business credit card. That card is only used for business-related transactions. At the end of the month, when you receive the statement, surely all the listed items has nothing to do with your personal transactions. By doing so, you have already the time and energy from highlighting which expenses is incurred by your business and which are not.

Reason #2: Know what your employee is spending on

It is a common procedure for small businesses to get owners’ approval before making a payment to something. But what if your vendors are looking for payments when you are not around? Instead of this time-consuming procedure, you can issue business credit cards to your employees linked to your business account. An advantage to do so is that you can set a monthly spending limit on every card so that you do not have to worry your employees overspending. When your statement arrives, you can easily identify who made a purchase and what was it for. Everything is recorded and written down in black and white, so whoever abuses his or her card cannot deny.

Reason#3: Save time to balance your chequebook

The beauty about using a business credit card is that you can simply write a single cheque to the credit card company so that you can balance your chequebook faster and minimize error. By paying the credit card is full every month on time, you can save paying interesting on your purchases by using the grace period.

Reason#4: Useful statements and reports

Many credit card companies nowadays offer a range of reports for businesses. You can opt for monthly, quarterly and yearly reports to categorise your spending. With these reports, it makes handling with taxes easier when time comes as everything is printed out on a single handout and already classified by the type of expenses by your credit card company. You may want to talk to your credit card company about this, some of them even allow you to custom the reports!

Reason#5: Bonus

What bonus do you get? Rewards! Different credit cards provide different types of rewards, for example, airline miles, hotel stays, petrol discounts. These rewards help you to save some costs too!

For small businesses, using business credit cards can save owners with time and effort so as to divert those saved time and effort to help the business grow.