Why You Need Small Business Credit Cards

If you run your own company, then chances are you've been in a few situations where your cash flow wasn't quite sufficient enough to meet payroll, accounts payable, or other immediate financial demands. As much as you try to stay on top of your finances and track every penny flowing in and out of the till, there's always the possibility that an unexpected expense will crop up to throw you for a loop. That's why it's important to have small business credit cards on hand to get you through these types of emergencies.

Although some entrepreneurs might view small business credit cards as luxuries that only well-off organizations can afford, the truth is that these financial instruments have become necessities to businesses of all sizes. There are just so many advantages to having small business credit cards at your disposal and so few drawbacks that it doesn't make sense to go without them.

One of the biggest benefits of using small business credit cards is that they simplify your bookkeeping tasks. Because these accounts are completely separate from your personal accounts, you'll never have to worry about mixing up your own money with that of your company. Moreover, you'll get separate monthly statements, making it far easier to keep track of expenses -- which will certainly come in handy during tax time. What better way to prove the legitimacy of certain expenses to the IRS than by having a separate corporate card and statement to show in the event of an audit?

Another benefit of small business credit cards is that they help show banks that your company is financially stable and capable of paying off debts. As long as you stay up to date with your monthly payments and don't fall behind, you'll be building your company's credit rating. This can pay off in the form of substantial small business loans that can help your company grow and expand, or keep it afloat during tough times.

Just as with a consumer card, some small business credit cards feature rewards programs that can help you get everything from discount airfare and free rental car upgrades to discounts on purchases or even cash back. Though these perks might seem trivial in comparison to other benefits, some rewards programs can actually yield terrific returns depending on how much you use your card. Plus, if you're going to be paying with plastic anyway, you might as well put yourself in a position to score some decent swag.

As long as you're very careful about the way you use your small business credit cards, they can prove to be invaluable tools as you try to steer your company towards success. Just don't fall behind on your payments or let yourself become overwhelmed by interest fees in the process, and you'll be fine!