Oct 25
Advantages of having a credit card for your business
October 25, 2021
You may be tempted to use your personal credit card to pay your business’s expenses, but beware, as this practice can affect your finances. The truth is that having separate accounts helps to preserve your budget.
Here are some of the advantages of having a credit card to handle your business’s purchases:
- Enhanced control of your budget. With a business credit card you can monitor your business’s expenses individually and prepare better projections.
- Expand your credit. A credit card offers you immediate access to a credit line , thus contributing to the ability to grow your business.
- Save time. With a business card you simplify your business’s accounting and account reconciliations to devote your time to other tasks.
- Make your life easier. Your business’s credit card will only feature your business expenses. This is an advantage when preparing the corporate income tax return because expenses will already be separated.
- Maximize the use of your business’s cash flow. You can avoid paying interest on payments or purchases when you make payments and pay off the total amount owed at the end of each cycle. You can stay current with your suppliers by paying immediately with your card and then paying off your balance later.