Running a business comes with many perks and rewards, and many expenses!
From travel and meals with clients or your team, to basic supplies and subscriptions for software that you need to keep running your business, all of these expenditures add up. This is why you need to not only keep track of these expenses to deduct them from your revenue, but you also need to have a convenient way to pay for them–this is where a corporate credit card is essential.
When selected and used wisely, a corporate credit card can help you:
Keep Personal and Business Expenses Separate
This is key for bookkeeping and expense management. Co-mingling your personal and business expenses is not only confusing and makes it harder to have a true picture of your business costs versus your personal budget, it also makes it much more difficult to import the data into bookkeeping and accounting software.
Prepare Expenses for Efficient Management and Reporting
Building on the point above, by designating and utilizing a corporate credit card exclusively for your business expenses, you will be able to seamlessly import that data into Quickbooks, Xero or other bookkeeping and accounting software. This means that once the data is aggregated with all of your business financial data, you will have instant insight into your total business expenses without the added work of manual data entry.
Reduce Expenses and Increase Income With Corporate Credit Card Reward Programs
You are likely already enrolled in one or more reward programs through a personal credit card, airline rewards, or hotel affiliation. If you are a frequent business traveler, then using a rewards card tied to that activity can be beneficial because it can reduce these expenses in the form of lower rates, rebates, or cash back perks. As a business owner, it is a smart strategy to use a business credit card that will also offer you these types of rewards
For example, CPA4IT Managing Member, Andrew Wall, CPA, recently took advantage of a Marriott Hotels American Express corporate credit card offer, which allowed him to pay for the annual cost of the card plus receive double reward points which equaled 10 free stays at a high-end Marriott property. All he had to do was simply use the card when he was traveling on a pre-planned trip.
As you are likely already aware, there are many programs tied to corporate credit cards to choose from. Andrew likes to check out Prince of Travel for tips on how business owners can reduce travel costs and reap the rewards of corporate credit cards and other loyalty programs. When you find one that you like, you may also be able to refer it to other business owners using affiliate links and earn additional passive income.
Once you have selected the right corporate credit card for your business (this quick Canadian small business credit card comparison site may be helpful), then don’t forget to contact our team (by clicking here) to help you ensure that you are using it to your full advantage in addition to having all of your transactions integrated.