As the year winds down, many business owners start dreading tax preparation. If you haven’t kept up with your financial record keeping, tax time can quickly become a nightmare! Make a plan now to make your business tax preparation easier for the New Year. An easy way to simplify record keeping is to use a business credit card. The trick is to use a single card for all of your expenses.
Here are four reasons a business credit card can make business finances easier to manage:
Financial Statements Created For You
Most business credit cards provide quarterly and/or annual reports that categorize your spending. If you use a credit card for all business-related purchases and expenses your tax preparation will be simple! You won’t have to search through boxes for receipts. Everything you need will be on a printout provided by your credit card company.
Some business credit cards will even give you access to generate customized reports. You can create a list of payments to a specific vendor or see payments made during a certain time period. Print your statements and hand them to the accountant!
Keep Business and Personal Finances Separate
With a credit card designated for business use only, it’s simple to keep your personal finances separate. When the statement comes, you already know everything is business related.
Business Credit Cards Manage Employee Spending
If your employees make payments or buy supplies for the company, add them as authorized users to your account. They’ll get their own card with their name on it. Your credit card statements and annual reports will separate spending by the employee so you can see at a glance who is spending what. You can even set monthly spending limits per card.
Earn Rewards and Benefits
Choose a business credit card with a rewards program. This way, you’ll earn cash back, travel rewards, or merchandise in exchange for paying for things you need anyway. It’s a benefit you just don’t have when you pay with cash or check!
Reduce your financial recordkeeping struggles with a business credit card. Make your card payments within the grace period, and it’s the same as paying with cash, but with many more benefits that cash doesn’t provide.