Business Credit Card

Is business credit card helpful?

The true that at least for most businesses ( small businesses) is "Yes" answer that's comes out very immediately. Before they delve deeper in to how business credit cards are helpful, let's try & understand what a business credit card is.

Put basically, a business credit card is a credit card that is owned by a business & not an individual. To understand this better, you can basically draw an analogy between the business credit cards & business bank accounts, which are in the name of the business as well. Other than that, business credit cards work in much the same fashion as the personal credit cards; with a few exceptions. These exceptions are in the type of flexibility in credit limit, low APRs & some other additional benefits that are available to business credit cards only.

Even from that, business credit card appear a lovely proposition. However, business credit cards would be stunning even without those benefits because the main benefit lies elsewhere. The big-big benefit from a business credit card is realized in terms of business expense accounting. For most small businesses, business expense accounting is a sizable overhead. With business credit cards, this is handled very basically, you must make definite that you make all of your business expenses on your business credit card & let the personal expenses be on the personal credit card i.e. segregation of business & personal expenses is all you require to do. So the bill for your business credit card will have all the business expenses on it & you wouldn't require to collate all the various bills or sort out the items from your personal credit card bill. The key here is to make definite that you use your business credit card for all of your business expenses (or as much as you can). Moreover, plenty of business credit card suppliers realize this require of small business & even manage the business credit card bills in a way that meets the accounting requirements of these businesses. So mostly, they will appropriately group the expenses on the business credit card bill so as to facilitate business expense accounting. In fact, some of the business credit card suppliers go to an extent of providing the bills in a format that can be downloaded & exported to an accounting method i.e. you don't require to enter the knowledge by hand in your accounting method. In case the format is not suitable for your accounting method, you can hire a application professional to write a small quick program to convert it in to an appropriate format.

Thus reason - facilitation of business expense accounting, is to support the case of small business credit card.