Small business owners — do you have one or more business credit cards like the CitiBusiness credit card? Do you really need a business credit card? While some very low-overhead businesses like one-person freelance operations might be able to get by without one, there are some definite benefits to having business credit cards at your disposal. Here are five of those benefits to consider when deciding whether or not a business credit card is right for your company:

1. You can finance large business expenses in the short-term. — If you need to purchase equipment for your office and you’d like to be able to pay it off over a few months, a business credit card makes that possible.

2. You can earn rewards relevant to your business. — If you use a business credit card with a rewards programme you might be able to earn rewards just for paying your typical business expenses each month. For example, you could earn frequent flyer points which would come in handy if you travel often for business.

3. You can keep your business records separate from personal records. — While some people use personal credit cards during the start-up phase for their small business, doing so merges personal and business financial records.

It’s a better idea to use a separate business credit card and leave your personal credit cards for personal spending. It will make things easier during tax time, and you won’t have to worry about personal spending habits influencing how much interest you pay on business expenses (such as losing interest free days if you don’t pay off personal expenses every month, but you do regularly pay off your business expenses).

4. You can get additional cards set up for your key employees. — If you have employees who need spending power within the company (to order supplies, book your travel plans, etc.), you might want to get them an additional credit card in their name. If you rely only on personal credit cards, it would be too risky to grant an employee access to your account. In this case a business credit card would be a better option.

5. You can take advantage of automatic recordkeeping. — If you rely mostly on cash or cheques to cover business expenses, you or your employees have to keep manual records of transactions (and receipts) in order to accurately track spending. Credit cards offer automatic records every time they’re used. Everything shows up in your statements, meaning you can more efficiently see where your company’s money is going (including how employees are spending it).

Business credit cards are about perks, spending power, and control — all good things when it comes to managing a business. Think about what you get from your cash and cheque transactions and ask “could I be doing more for my business with a business credit card?” When they’re used responsibly, the answer will generally be “yes.”

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