It’s not unusual for even the most successful companies to run short on cash from time-to-time, limiting discretionary spending and putting a strain on company finances. According to the National Federation of Independent Businesses (NFIB), nearly sixty percent of small business owners use business credit cards, a separate category of credit card designed specifically for the needs of small businesses. If you run a business, you know firsthand how difficult it can be to manage and control spending. With fewer restrictions and hoops to jump through than a traditional bank loan, a business credit card may be the perfect tool for emergency funding and will help you efficiently manage expenses.
A business credit card is a flexible short term line of credit that is perfect when other funding options are not available, as well as an excellent way to oversee expenses. Enjoy lower rates than most loans and a generous credit limit that is sufficient to cover many of your business needs. Acquiring a business credit card is as easy as filing out an application and requires no collateral.
A big challenge for many companies is how to best manage their expenses. The traditional method requires keeping hard copies of all sales receipts and financial transactions. As a business grows this paperwork can become overwhelming and burdensome, making the job of managing expenses a serious undertaking. In addition, when a company provides employees with multiple ways to pay for company expenses, rooting out abuse and mismanagement is much harder to do.
By using a business credit card, all of your company expenses will be consolidated into one monthly report by the credit card company. With each credit card statement, you’ll be able to see how much is being spent and monitor all authorized users of the account. A closer look will show how individual employees or departments are managing their expenses, giving you an opportunity to address a problem or recognize a job well done. Some of the benefits include:
- Detailed Expense Reports: Monthly, quarterly and annual reports will accurately show how company funds are being used and over an extended period of time – important statistics to keep a well management business in business. Annual budgets will be more accurate with pinpointed statistics at your fingertips.
- Tracking of Individual Employees: If more than one employee has access to company funds, a business credit card can help you separate their spending and track their individual activity. Authorized employees can be given a set spending limit on the account and once they’ve reached their limit, further transactions will be denied. Easily analyze the expenses of each employee to determine areas that need to be addressed. Employees can even monitor their own activities by accessing their account online.
- Simplified Travel Expenses: Business travelers will no longer need to shuffle through invoices and receipts from hotels, car rental agencies, restaurants and other travel expenses to submit an expense report. The company’s business credit card will provide an accurate record of how company funds were spent. Expenses that require reimbursement will be easier to verify.
In addition to detailed reporting and analysis, a business credit card will cut administrative time by simplifying financial management and reducing paperwork; reports can be viewed anytime and anywhere, 24/7 online. Import your account activity into business software like Quicken to simplify the process even further and evaluate even more financial details. With so much financial information at your fingertips, fraudulent charges and account errors will also be more quickly discovered and resolved. Why wouldn’t you choose a business credit card? If you haven’t ever considered these benefits, they might be worth a look. Did I forget to mention they provide many reward perks???
To see a complete list of business credit cards, visit www.wowcreditcards.com/business