So many business best practices rely on the strategy of doing more with less, and managing expenses is no exception. Business expenses are inevitable, but that doesn't mean you can't work toward getting more bang for your buck. One of my favorite entrepreneurial tricks is finding ways to use my business charge or credit card to accrue rewards. Using my company card for business expenses can really make a difference.
So here's the basic concept: Yes, it makes sense to minimize expenses and trim unnecessary expenditures. But for those necessary expenses you must incur, use a business card that gives you rewards like cash back and benefits that matter. My theory? You have to spend the money anyway, so you may as well get something back!
Now here's a caveat: When I'm talking about using your business charge or credit card for your business expenses, I'm not recommending that you go out and immediately start racking up huge amounts of debt. Too much debt is a major sign that your company might be in serious trouble. Remember, business cards don't equal free money—they're just providing money that you get to defer paying back for a brief period.
The way this strategy works is that you use your carefully selected business card to pay for those necessary business expenses, and your chosen card company rewards you. But which categories of business expenses should you focus on?
1. Office Supplies
Whether you have a home office or a building staffed with hundreds of employees, you're going to have office expenses. Paper, desks, ink, phones…the list goes on and on.
The key to getting the most out of these expenses in terms of business charge or credit card rewards is to select your card carefully and use it wisely. If you're thinking about how to stretch your dollars with your business card, cash back or longer repayment options can be a great start.
2. Vendor Payments/Inventory
Remember the caveat above: Debt can be dangerous, so you want to buy inventory on credit very, very carefully.
If you have the right business card and your cash flow lets you manage payments without growing a mountain of debt, then you may want to consider racking up business credit card rewards when you're replenishing your stock. An added bonus is that business cards often give you a better exchange rates when you're making international purchases, which may give you additional room for profit.
This category can be your biggest source of rewards if your business expenses include travel.
If you're thinking about how to stretch your dollars with your business credit card, cash back or longer repayment options can be a great start.
Again, choosing the right business charge or credit card makes a difference, but you can earn perks such as flights, hotel stays, upgrades and access to airport lounges just by using your business credit card for business travel expenses.
4. Rewards for Tech
This category of business expenses is one of my favorite new ways to get more bang for my business bucks. There are actually business charge and credit cards that will offer rewards or statement credits for technology purchases including hardware, software and cloud solutions . If these types of services matter to your company, then why pay for them instead of getting them for free?
Read more articles on credit-card financing.
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