If you own and operate a small business, then it is of absolute paramount importance to keep accurate track of you expenditures because overspending will eventually lead to a company bleeding red ink. It is not easy to get a small business started and it can be even more difficult to keep it solvent. However, if management makes a few simple common sense decisions then the ability for the business to be financially successful will increase dramatically.

One such step that a small business can take is to make all company related purchased on a business credit card. A business credit card differs from a personal credit card in a few minor ways mainly to make the business credit card more attractive to applicants. Furthermore, the fact that the purchases that a business will make in a fiscal year will be significantly more than an individual will make provides the incentives for the business credit card issuer to offer lower rates. For example, there are a number of business credit cards that offer APR’s of less than 8% a year as well as charging no annual fee. On top of this, many business credit cards will also offer reward and cash back programs that can save a struggling business a ton of money. (Imagine getting a 5% discount on office supplies. This would be a HUGE money saver for a start up business)

A business credit card can also make the accounting for a business a lot easier as the bulk of the company’s purchases will be accountable on one or two credit card accounts. Because of this, errant purchases that are not unaccountable will not place the company’s books in disarray. So, the moral here is fairly obvious: if you operate a small business then need for a business credit card is an absolute must.