6 advantages of keeping Business and Personal Credit cards separate

Everyone knows the importance of credit cards and using the credit facility in a responsible manner. The credit cards have become the essential mode of managing the finances and help us in many ways for maintaining the proper cash flow and liquidity. The majority of the financial institutions issuing the credit cards are offering the business credit cards apart from the personal credit cards for the users. The majority of the business owners and professionals have multiple cards for their business and personal needs. This is quite advantageous if you are keeping the business credit card and personal card as separate. The below points will help you understand the advantages of the same.

1.    Keeping the track of the payments: It is inevitable for the business person to keep a track of the financials and the business credit cards help them in managing the records of the payments easily. The business related payments are often coming under the tax provisions and keeping the separate card helps you in managing the payment records handy at the end of the year.

2.    Building business and Professional Worth: The business credit card reflects that you are in control of the financial situation and do understand the importance of paying the necessary bills promptly. While you are paying off the personal cards the negative message goes into the of the service provider as it seems that you don’t have sound finances for keeping the separate business and personal accounts.

 

3.    Helpful in easy tax assessment and bookkeeping: If you are using the business credit card then you are in a position to assess the records of the payments made for the business purpose and helps you in developing the yearly ledger accounts that are used for the purpose of tax assessment after deduction of the expenses in business operation from the profit.

4.    Offers and Privileges from the credit card providers: It is also one of the factors that tend the business person to keep a separate business credit card. The most of the credit card institutions are offering various privileges to the business card owners. Apart the companies are also launching different schemes for business card owners to attract more business. Most of the companies in the hospitality and the aviation sector have a tie-up with the business card providers and they do offer fabulous discounts on their services.

5.    Extended use of business credit card: The majority of the business credit card is coming with add-on facility that offers you to extend the facility to the employees for managing the payments. Apart the business credit cards are insured against the possible misuse and save you from any unjustified liability.

6.    Higher Credit limits: The business credit cards are coming with higher credit limits as compared with the personal credit cards that allow you to mage the financials for the business expenses easily. One of the important advantages of the business credit card is that it helps you in boosting the credit rating easily provided you are managing the finances sensibly.

Keeping these advantages in mind you must avail the business credit card and stop using the personal credit card for your business expenses.