We have entered into a new age of credit for small business. New opportunities apply but credit debt still needs to be approached with caution. With the growing popularity of small business credit cards, now is the time to learn the many benefits they provide.
Avoid mixing your business and personal transactions on your credit cards.
This can create potential tax and money management problems. The IRS will know that you are serious about your business by using a separate credit card solely for your business.
It is good to build business credit with a business credit card for it provides this type of opportunity.
This will be useful in the future as your business grows and when you need additional capital in the form of loans or credit lines.
Many credit card companies provide you with a year-end statement summary with all transactions itemized. In a business, tracking expenditures at the year-end can be difficult. This will organize and categorize your bookkeeping process legally for you.
Another plus to small business credit cards is the ability to provide cards for your individual employees with preset limits.
With the separate statements you will receive, you will be able to monitor their spending.
Reward and discount programs have now developed due to the heavy competitive credit card and business market. They range from office supplies, software, travel, phone services and so on. Take advantage of these programs to lower your expenses also.
Now that you know some of the benefits of having a business credit card, next you should understand the effective steps to managing credit cards so you can make money with their assistance on the Internet.
Apply for the small business credit cards at your existing financial institution. Your banking relationship can aid with the approval process.
Reduce credit card fees and interest costs by not using the cash advance feature on your card.
Cash advances incur more fees and cost than you realize.
Save time and extra costs by paying your small business credit card online versus paying by teller at your branch or mailing in your payment with postage.
Late fees and high interest rates quickly erode the merits of using your credit card.
Be responsible by paying off the total amount on time each month.
Treat your card ownership as a privilege and you will avoid the disastrous effect of credit card mismanagement. Apply the same responsibility to your card as the rest of your business and your card will indeed assist you in making money with the Internet.
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About the Author (text)Court helps people to learn about how to make money on the internet. You can read more of his work by visiting http://courtneytuttle.com.
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