Having a business credit card not only helps you to manage your cash flow throughout the year, it can also make the process of filing your taxes a lot simpler. Use business credit cards to pay for all your expenses and you will not need to worry about separating the personal from your business expenses. A credit card may also make it easier for you to pay any taxes owed at tax time.
Keeping Track of Expenses
Using a business credit card allows you to keep track of all your business expenses without needing to save a pile of receipts, which can easily get lost or become a disorganized mess. Instead, use your card statements to prove your expenses. If you are a sole proprietor, having a separate business card makes it a snap to keep your personal expenses separate from your business ones. In addition to the statement you receive from the card company each month, you may also receive a year end statement, detailing every purchase you made throughout the previous 12 months.
If you use a software program to file your business taxes, you may be able to export your credit card statements directly to the program. Once the statements are in the program, it will scan them and will deduct the correct expenses in the correct location. This saves you the trouble of needing to enter each expense and total the amount yourself. You will still want to double check the tax software against your statement to make sure it did not miss anything.
You may owe a large sum of money at tax time. Using your credit card to pay the tax bill can help you with your cash flow, especially if you are expecting payments from clients but have yet to the receive them. In many ways, it is preferable to owe money on your credit card rather than owe money to the IRS
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card