Reason 1: Building Commercial Credit Score
There are very few businesses that do not depend on credit from their banks, private lenders and equity firms. Having a commercial credit score for your business is essential to securing future credit with major banks and lenders. There is no better way to start building your commercial credit score than a business credit card (assuming you use it and pay it on time). When your business needs credit for an expansion such as a line of credit or a term loan – your banker is going to check your credit score. Do not delay - start building your commercial credit score now.
Reason 2: Save Money with Your Accountant and Bookkeeper
The words accounting and year-end tax filing bring to mind the familiar shoe box with receipts and piles of paperwork.So how can having a business credit card help with timing and cost for year-end you ask? Well consider this:
- Having all your purchases on 12 credit card statements fully itemized helps your accountant clearly and easily identify fixed assets for amortization purposes and deductions of all allowable interest and fees. It is so much simpler to look at 12 business statements than to look at personal statements – finding business items, calculating business interest and fees, etc.
- All the purchases are itemized for you and your employees. If you lost a receipt – not to worry – your business credit card statement captures this information.
By making it easier on your accountant, your fees will be lower as they need to do less digging. As well, your accountant can capture all the correct allowable expenses such as interest and fees to help your bottom line.
Reason 3: Canada Revenue Agency Audit
Canadian federal law requires all business owners to keep clear records of all their business transactions going back seven years. Having a business credit card helps you and your accountant to keep records of all the purchased items on easily accessible monthly statements. Plan for your bright future now in order to avoid major headaches down the road.
Reason 4: Fees and Interest
As mentioned previously, your accountant can help you identify allowable fees and interest rates that can be deducted as a business expense.
Business owners have no reason not to take advantage of the best cards on the market. Even if the card has an annual fee, it can become a tax deduction for most business owners.
Reason 5: Rewards and Benefits
There are many great business credit cards that offer amazing rewards and benefits for you and your business - from extended warranties to travel insurance, all the way to discounts on car rentals, the rewards are endless. Business credit cards can help you run your business more efficiently and smoothly.
Reason 6: Combine your Rewards
Many credit card companies allow you to combine your rewards from business and personal credit cards (assuming it is the same reward program). With business expenses being high, you can collect many more reward points faster and redeem them sooner for personal use, such as trips for you and your family or employee gifts and rewards. Who wouldn’t want to take their family on a free vacation?
Reason 7: Employee Tracking and Expenses
If your business is a bit bigger and you have even one or two employees, giving them your business card with predefined credit limits can make your life so much easier. You can track all of their expenses online, with a clear view and easy-to-use tools.
Your accountant will thank you and you will save money. By giving your employees a company credit card, you can earn more reward points faster to redeem for a dream vacation or flat screen TV.
To help you select the best business credit card with top rewards and benefits customized to your business needs, click here. Let Wallet Savvy be your trusted advisor in selecting your business credit cards.