Having separate cards makes it easier to keep track of purchases, transportation, supplies, sales and other necessities involved in running a small business.  Record keeping for tax purposes will be that much simpler with cards which are individually designated for business purposes.  Household and personal budgets are much easier to manage when kept apart from small business enterprises.

There are many credit card offers available to small businesses, but owners should consider several things before making a decision to accept an offer.  A good credit rating is essential in being able to get cards with lower interest rates and longer interest free time periods.  Some credit cards offer very attractive low interest rates, but with careful examination of the terms, these may be of little benefit in the long term.  Small business owners should have a thorough understanding of the terms, fees and minimum payment options on the account, especially in a new business when the income may have to be estimated.  Entrepreneurs who embark on a new, exciting idea for a small business will need to plan even more carefully, as the venture may or may not succeed.

Small businesses which employ several people can usually request additional cards for their employees, rather than handing out cash to take care of business expenses.  These can be used to pay vendors, purchase supplies, buy petrol and for any other business negotiations which may have to be entrusted to an employee.  Not only are they kept separate from personal use, they will give the manager an excellent record for each employee.  Most employees will be trustworthy, but if there is ever any question, the manager will have a written record of everything charged on the credit card.

Another important thing to keep in mind is that credit cards issued for business purposes will usually have a higher credit limit than cards designed for personal use.  In the long run, this will pay off in terms of getting financing to start up or loans to improve your small business.  It is quite possible that the business credit card will offer some sort of rewards, in either points or cash back.  These rewards can then be used for travel or entertainment expenses of the company.

Credit cards for small business use will prove invaluable in many ways.  Some credit card companies will even prepare a detailed statement of expenses each quarter, or at the end of the year.  This is an official record which either the manager or the accountant can easily follow, which will greatly simplify tax preparation.

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