If your small business is apt to use a credit card or cards for work, make sure both you and your employees (if applicable) use them responsibly in order to avoid financial issues.
Given the challenges of today's economy, many small businesses are watching their dollars even closer these days, making sure there are no dollars going out the door unchecked.
In the event you are running a small- to mid-sized business, keep several factors in mind when seeking or using business credit cards:
- Be sure your personal credit rating is sound when searching for business credit;
- Your business score will primarily be centered on you making your payments on time;
- Having a number of corporate credit cards is not the end of the world as it can be with too many personal cards;
- Be sure your vendors report your payment performance so that the good information does not go unnoticed;
- Come up with an estimate of how much credit you will need so that you do not go too low or seek too much;
- In the event you have employees using the company credit card/s, make sure they provide you with receipts for each and every purchase, especially when traveling for business. Some things can be written off when you do your taxes, but make sure things are documented;
- Do not mix up personal and business credit cards. It just takes one or two slip-ups to have your business rating and personal credit scores damaged;
- Review your statements monthly to make sure there are no errors. A few dollars incorrectly recorded here and there may not seem like a big deal, but it can add up over time.
In the event you have been using company credit cards for some time now and continue to add employees, make sure the credit card policy is reviewed with each and every one of them.
With tougher financial conditions for many people today, credit card fraud is not out of the question. Informing employees up front of the risks of misusing a company credit card should deter them from doing so.
With sound financial practices and continuously reviewing your business credit card/s, your company should credit itself on a job well done.
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