Choosing a business credit card for your practice needs can benefit you, too.
by Tracy Schmidt in Money Management on Monday, October 7, 2019
When it comes to choosing a business credit card for your practice, not all cards are created equal. How can you choose one that’s right for you, and what are the benefits of using it?
- Benefit: Some business credit cards are starting to offer rewards. Some business credit cards offer rewards, but the benefits differ from card to card. One with a variety of rewards, such as travel, car rentals, hotels, cash back and more, will reap many benefits for you as you make purchasing decisions for your practice.
Tip: By finding a card with a rich rewards program, such as the MilesAway® Mastercard®, with rewards on every purchase, you will find your rewards points adding up quickly.
- Benefit: Business credit cards can help you keep your personal and business purchases separate.
Tip: Don’t use your personal credit card for business purchases. This will help make it easier during tax time so you can easily calculate your tax deductions. Plus, it is just good business sense to keep your personal and business purchases separate.
- Benefit: Business credit cards give you more buying power when you separate your business and personal purchases. Each credit card will have its own credit limit, allowing you more potential credit for both business and pleasure.
Tip: Using your business credit card for your practice, rather than a personal one, is always recommended. Comingling funds is not a best practice in business.
- Benefit: Business credit card transactions can be accessed and imported into QuickBooks. QuickBooks is an accounting software that many small and mid-sized businesses use for managing their sales, expenses and daily transactions.
Tip: Research QuickBooks if you don’t use it and consider how it could be beneficial for your practice. If you sign up or already have it, you can easily access your business credit card transactions and import them into Quickbooks.
- Benefit: Mobile wallet makes your business credit card purchases simple. Many business credit cards can be quickly imported into your mobile wallet, making your purchases—and adding up your rewards points—quicker and easier.
Tip: Connect your business credit card and other favorite credit cards to your mobile wallet for quick ease of use.
- Benefit: You can set up your business credit card to pay recurring expenses. You can often pay recurring expenses like internet, phone, rent and insurance with your business credit card.
Tip (and bonus benefit!): Change your payment method for your expenses to your business credit card. You won’t need to write a check every month and you may accumulate points for these transactions.
- Benefit: Business credit cards can help you budget for your practice expenses. You can use your business credit card to track the types of expenses you are making when you receive your monthly statement. Use this information to see how much you are spending in certain areas and plan ahead.
Tip: Use the information from your business credit card to create your budget. Review your monthly statement to see how much you spend in certain areas such as equipment, personnel or marketing, and use that to budget your monthly expenses. Seeing where your money is going will more easily help you plan and stick to your budget and cut out unnecessary expenses.
Business credit cards offer a way to not only fund many of your purchases or unexpected expenses for your practice, but also can offer you many benefits. Do some research to find one that’s best for you, and consider one that offers numerous rewards – so you can reap the benefits of your hard work!