Using a Business Credit Card for More Than Frequent Flyer Airline Miles and Cash Back Incentives
Most people think of business credit cards
for their rewards programs, cash back incentives, or frequent flyer airline miles,
but a corporate or small business credit card is an excellent vehicle for managing
company expenses. As most consumers can attest, it's easier to let spending get
out of control when using a plastic rather than paying cash. But with business
credit cards spending there is rarely unnecessary or impulse spending going on
so the downside of plastic use is normally not a factor. Business expenses are
a fact of life but the key to is know where the money is going so that ongoing
control can be exerted.
Expense reporting is a wonderful feature of business credit cards and takes the
form of monthly statements with purchase category breakdowns for easy analysis.
For instance, monthly travel and entertainment expenses can be separated and monitored
relative to office supply and administrative expenses. Many credit card issuers
offer statement formats that can be accessed online and downloaded into business
reporting software such as Quickbooks for more detailed accounting purposes. In
fact, many businesses forego paper statements and rely solely on internet-based
monitoring of credit card expenses which allows daily monitoring capabilities.
For businesses with remote or traveling employees this can be an invaluable resource
for controlling expenses and maintaining an audit trail.
Small Business & Corporate Credit Cards Can Create Less Paper, More Control
In addition to the rewards programs and frequent flyer airline miles one of the major benefit of corporate and small business credit cards involves the consolidation of expenses for companies with many employees. Rather than having a flood of invoices and expense reports come in every month from traveling employees the company can receive one bill broken down by employee, type of charge and date – all much appreciated by the accounting department and CFO. This process is also very helpful for employees who in the past had to fill out expense reports and send in invoices in order to get reimbursed for charges made to their personal card. New expense reporting software supports the use of corporate credit cards and allows employees to view and approve their charges prior to submitting online for approval. Future travel expenses can even be forecasted and managed more efficiently using these reporting tools.
How your company chooses to use business credit card reporting capabilities is somewhat dependant on the type of operations involved and the number of employees. Regardless of size, a business credit card can offer significant expense control features to make your business work more efficiently. So the next time you think of small business and corporate credit cards for just frequent flyer airline miles and cash back rewards, remember that they are also a great tool for managing company expenses.
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Your financial situation is unique and our information and advice may not be appropriate for your situation. Accordingly, CreditCardXPO.com recommends that you get different opinions and seek the advice of your accountant and other financial advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy.
