Small Business Credit Cards: Make Your Accountant Obsolete

 Small business credit cards can play an important role in the success of many enterprises and small businesses. Yet currently most folks view of small business credit cards is extremely limited. Mostly they only think of them as tools to aid them in obtaining certain incentives for small businesses that credit cards have become famous for giving.
Problems That A Small Business Credit Card Can Solve
The more significant potential role that small business credit cards can play is that of helping entrepreneurs manage their businesses more efficiently and easily by greatly simplifying the accounting and financial record keeping tasks. There is no doubt that this is a critical area in the management of the affairs of any business and yet keeping constantly updated and accurate records is quite a challenge for any small business.
Many people thought that with the advent of popular and easy to use small business software accounting packages like Quickbooks, this problem was gone forever. Alas, some old problems persisted. One of them was that somebody still had to enter the details and somebody still had to keep all the receipts. Then there is always the struggle to separate personal expenses from business expenses for a small business. Not to mention the need to divide all the expenses into various different categories for tax reasons.
All these headaches instantly create the position for a full-time, experienced and therefore expensive accountant for any small business.
How Small Business Credit Card Reporting Systems Work Magic

Most small business credit card statements are very detailed and immediately eliminate the cumbersome need to get and carry around receipts with you. Small business credit card statements can easily be categorized and dividing personal and business expenses is a breeze.
What makes things even easier is the fact that these detailed reporting systems are accessible online and statements can easily be downloaded directly into most of the popular small business accounting packages around. What this means is that there is no need of getting somebody to key in your expenses into the system with all the possibilities of errors and omissions.
So with one master genius stroke of getting a small business credit card and ensuring that all expenses are paid using it, any small enterprise instantly creates a highly efficient and paperless accounting system that virtually requires no manpower.
You really need to have gone through the hassles of keeping track of your expenses by physically collecting and keeping receipts to appreciate how much of a relief a small business credit card accounting system can be.
Even if you choose to retain your accountant (which you should if you can afford him), they will now get involved in doing other more useful tasks that will impact even more directly on the success of your small business like researching for lower cost vendors and generally finding new ways to reduce costs and expenses for the small business. Meanwhile your small business credit card reporting system will accomplish most of the time-consuming daily tasks of the past. And let's not forget, the frequent flyer, cash back, and other rewards small business credit cards offer are great too!

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The how to Pick the Right Credit Card For Your Spending Habits

There are so many different credit cards out there to choose from!  Picking the right one for your spending habits can be a difficult decision. Here, we'll try to help you sort through the types, and to make a wise choice.

No annual fee vs annual fee:

*Some credit card companies charge an annual fee just to have the card. Some will waive the fee just for charging a certain amount during the year on it. Many cards that have an annual fee are for individuals with less than stellar credit, although there are others such as rewards cards, and some specialty cards that also charge a fee. If the card offfers a low enough interest rate, it may be worth your while to pay the fee.

Balance transfer credit cards:

*If you are carrying a balance on a higher interest credit card, it may be to your advantage to transfer your balance to a card offering a lower interest rate. This rate can be as low as 0% for a length of time that varies widely between card issuers. Typically,  this can be from 3-18 months, although some carry the lower interest rate until the balance is paid off. Be sure to read the fine print for any balance transfer fees that may apply.

Low interest credit cards:

*Some credit card companies offer a low interest rate. This often includes a low introductory rate on purchases, which will increase after a specified amount of time-normally from 3-12 months. Again, read the fine print to see what the interest rate will be after the introductory period ends, and check to see if an annual fee applies.

Reward credit cards:

*These cards reward you for using them. The more you charge on them the more you get back. These are ideal for individuals who pay off their bill in full each month. The rewards can vary widely by issuer. Typical rewards include: cash back on all purchases, airline miles, store discounts and other perks. Be sure to read the terms and conditions thoroughly before applying. And, make sure if you use these cards, pay off the balance in full each month. The interest rates are normally higher than other cards to compensate for the rewards. You don't want to lose what you gained in rewards to interest charges.

Student credit cards:

*These cards are for students who generally have little or no credit history. Often, they have more restrictions than a non-student card. Some require a parent or guardian to co-sign. This would mean if a student defaulted on all or part of their payments, the parent would be responsible. The parent or guardian can also get a statement sent to them or have online access to it, and would have control over increases in future raises in the credit limit. Student cards can help teach financial responsibility, as well as build  credit history.

Business credit cards:

*Business credit cards are generally available to business owners as well as emplyees. They can help keep business expenses seperate from personal expenses. They also offer many of the same features as traditional credit cards, such as low introductory rates, cashback rewards, airline miles or gifts. You may even use the rewards as an incentive to employess at no out of pocket expense to the business.

Secured credit cards:

*If you have poor credit, you may need to get a secured credit card. With a secured card, you secure the card by depositing cash up front in a savings account or to the credit card company. The amount of funds you place on deposit will generally match your credit line. Your card issuer has  a lien on the deposit account, which you stand to lose if you fail to make your credit card payments on time.

A secured credit card looks just like a regular one, and the law specifies that it has all the same consumer protections. A secured card typically carries a higher interest rate. But, a secured card can be a good deal because it offers you ability to have a credit card while you work on establishing or rebuilding your credit rating.

Debit cards:

*Debit cards look like a normal credit card, and are accepted anywhere credit cards are. They work more like checks than credit cards though. You can also use it at an ATM to withdraw cash from your account. The money comes directly out of your checking or savings account immediately when you make a purchase, instead of waiting for the montly bill. And, consumers who use debit cards don't have all of the same protection as credit card users. Conusmers don't have the right to withhold payment in the event of a dispute with a merchant, and if your card number is stolen, your account may be emptied before the bank can complete an investigation.

Hopefully, this information will help you sort through the credit card maze. The most important thing to remember is to read the cardholder agreement closely to find out the terms-especially after the introductory period is over. And, always consult with your financial advisor before applying for any credit card or making any major financial decision.

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