We always tend to be a little casual with our business or corporate credit cards for the simple reason that the company tends to reimburse or pay the credit card bills. However, at the end of the month when you send the statement to your company’s executive most of the times you are left scratching your heads. The simple reason is the expenses seem to overshoot the bills you have. This is because not that you have used it for your personal expense but you just did not figure out a way to keep track of the expense or you did not practice due diligence while swiping the card.
Maintain the balance
One of the reasons most small- to mid-sized business struggle is simply because they do not know how to manage and take care of their daily transactions. They are so focussed on the business that they forget that the money that runs the business also requires utmost importance. To be a good business, you need to make sure that your business has good credit history not only for future financing, but for getting loans or getting investment as well.
Have multiple accounts
It is always advisable to share the burden especially with respect to managing the expenses. It would be a good idea to have multiple cards and entrust the respective employee to manage their expenses. Let the purchase manager look after his expense while the logistics bills their own expenses etc. However, make sure you have a way of tracking these expenses in a phased and timely manner. Make sure that you have also given strict and clear instructions on the responsibility and the using of the card. This way you have will have some of the burden off your shoulders and help you manage the credit card easily.
Make sure you have the right credit limit
It is not always possible to know the right credit limit right away but at least after up and running your business, get in touch with your bank and make sure you have either increased or decreased the limit based on your business requirement. This shows that you exactly know the big picture though it seems very simple.
Avoid the unnecessary
There are always small but unnecessary expenses that crop up like the door handle or the toilet blockage or the water leak in the office. Be serious about your business and use it for strictly business purpose and not business related purposes. This helps you to focus exactly on business transaction and not pile up your expenses in the long run.
Enjoy the Rewards
Unlike personal cards, corporate credit cards are high on transactions, penalties and high on rewards as well. If you are aware of the rewards in your corporate credit cards it only shows that the expertise you have on using your card to the maximum advantage and definitely the motivation as well in exchange for the rewards. Just make sure you do not go overboard with it.
Take the risk only if it is worth it
Business at some stage or the other is all about taking the big plunge but however with a lot of confidence and preparedness than just plain adrenaline and Déjà vu. So be 100 percent sure if it is worth swiping the entire amount of your corporate credit card and only if you are prepared to face the backlash or have a plan B.