Business Credit Card Use Explained
Just When Should You Use a Business Credit Card?
When it comes to your business credit card, the cliché “Never mix business with pleasure” has never been more accurate. If you own a small business, there are some things you should know about using your business credit card. You probably got your business credit card in order to use it to help fund your small business in some way whether that means you intend to use it for new supplies from other vendors or to pay for any monthly expenses you might have.
It's Not Personal
It’s a good idea to avoid using your business credit card for personal purchases. Some people like the convenience of using just one credit card for all their purchases whether the purchases are for business purposes or personal use, but that is generally not a good idea.
It will be extremely difficult to keep your purchases organized if you use your business credit card for both business and pleasure. Having a small business can be a challenge to maintain, and you definitely want to avoid complicating the matter by using a business credit card for more than just business purchases. It will be all that much more difficult to itemize your business expenses if you have to sift through your credit card statement identifying whether or not each purchase was for business purposes or not. Sure there might be times when you inadvertently pull out your business credit card to make a personal purchase, but you shouldn’t make a habit of doing this.
Following the Rules
If you are not a small business owner but carry a corporate business credit card with you when you go on travel assignments for work, whether or not you can use that credit card for personal purchases will depend on the rules your company has set. Check with your manager or human resources department if you are unsure about proper use of your business credit card as an employee.