What Can I Buy With My Business Credit Card?

July 2, 2024   |   Written By Lexicon Bank
What Can I Buy With My Business Credit Card?

In the fast-paced world of technology, business owners face a growing number of challenges, particularly in cybersecurity. With artificial intelligence (AI) playing an increasingly prominent role in defending and attacking digital assets, understanding these emerging threats is crucial.

Running a small business comes with its own set of challenges and opportunities. One tool that can make your entrepreneurial journey smoother is a business credit card. But what exactly can you buy with it? Knowing the answer to this question can help you manage your finances more effectively and take advantage of the benefits of your card.

Why Use a Business Credit Card?

Before we dive into what types of purchases you can make, let’s discuss why you should consider using a business credit card in the first place. Here are some compelling reasons:

  • Separate Business and Personal Expenses: Keeping your expenses separate simplifies accounting and tax preparation.
  • Build Business Credit: Responsible use of a business credit card can help you build your business credit score, which is essential for securing loans and other financing options.
  • Rewards and Perks: Many business credit cards offer rewards, cash back, and other perks tailored for small business owners.
  • Expense Tracking: Most cards come with tools to help you track and categorize your spending, making it easier to manage your budget.

What Can You Purchase With Your Business Credit Card?

Your business credit card can be used for various expenses, helping you manage your cash flow more effectively. Here are some common small business expenses you can cover:

1. Office Supplies and Equipment

Office supplies, from pens and paper to computers and printers, are essential for daily operations. Using your business credit card for these purchases can help you earn rewards points or cash back.

2. Inventory and Raw Materials

Whether you run a retail store or a manufacturing unit, purchasing inventory or raw materials is a significant part of your expenses. A business credit card can help you manage and track these costs.

3. Travel and Entertainment

If your business requires you or your employees to travel frequently, a business credit card is a great tool to manage these expenses. Use it to book flights and hotels and even for dining out during business trips. All without asking your employees to spend out of pocket, just to reimburse them, saving time.  Many cards offer travel insurance and other travel-related benefits.

4. Marketing and Advertising

Promoting your business is crucial for growth. Use your business credit card to pay for online advertising, print media, and other marketing initiatives. This can also help you track your marketing ROI more effectively.

5. Professional Services

From legal consultations to accounting services, professional expertise is often needed to run a business smoothly. Paying for these services with a business credit card can help you manage these costs while potentially earning rewards, depending on the type of card you have.

6. Utilities and Rent

Many landlords and utility companies accept credit card payments. Using your business credit card to pay utilities or rent can simplify your bookkeeping and help you earn rewards on these recurring expenses.

7. Software and Subscriptions

Software expenses can add up whether it’s accounting software, CRM tools, or industry-specific applications. Use your business credit card to manage these subscriptions and streamline your operations.

How to Maximize Your Business Credit Card Benefits

Now that you know what you can buy with your business credit card, here are some tips to maximize its benefits:

  • Pay Off Your Balance: Avoid interest charges by paying your full balance each month.
  • Take Advantage of Rewards: Choose a card that offers rewards relevant to your business needs, and make sure to redeem them regularly.
  • Monitor Your Spending: Use the expense tracking tools provided by your card issuer to monitor your spending and stay within budget.
  • Review Your Statement: Regularly review your credit card statement to ensure all charges are accurate and to spot any potential fraud.

A business credit card is more than just a payment tool; it’s a financial asset that can help you manage your small business expenses more effectively. From office supplies to travel and marketing costs, knowing what you can buy with your business credit card allows you to leverage its benefits fully.

Ready to take your business to the next level? Use your business credit card wisely and watch your small business thrive!

For more tips and insights on managing your small business, check out the other articles featured on our blog.

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