Nearly every individual makes purchases with a credit card at some point or other. But did you know that you can also apply for a business credit card if you have your own business? Business credit cards not only make it easy for you to purchase supplies and services, but they also help to streamline your business and accounting practices -- particularly in small businesses, where man-power is limited and purchases can be frequent.

How to Use It

Business credit cards are used just like any other credit card. If you apply to receive a small business credit card, you will be asked what name should appear on the face of the card. Many small business owners will imprint their own names, particularly if they are the primary purchaser. However, if you have an active team of frequent shoppers, you may want to consider either imprinting the company name on the credit card or obtaining a business credit card for each of your team members to use at their discretion.

How Business Credit Cards Can Help You

All businesses are accountable to the government for tax purposes and are accountable to themselves for revenue and expense calculations. In the days when all purchases were made with cash, the accounting departments of large companies had to spend the bulk of their time sorting out wads of receipts and purchase orders. However, when business credit cards hit the market, credit card companies made it possible for accountants to streamline the record-keeping process. Small businesses benefit from using small business credit cards especially well because most small organizations do not have the resources to enlist a team of accountants to sort out purchases. When you enroll in a business credit card program, you will not only receive itemized monthly statements, but some credit card companies even go so far as to categorize your purchases so that you can more easily track spending. How's that for customer service?

Taxes

Not only will your accounting department appreciate the implementation of the small business credit cards on a continuous basis, but they will be especially appreciative during tax season. While it is still a good idea to retain receipts of purchases in case your small business should ever get audited by the IRS, having a small business credit card will help you efficiently file your taxes. You will be able to effectively pull together spending figures. While many CPA's debate whether Uncle Sam will accept a simple credit card statement as proof of a business-related purchase, at least you have some sort of evidence of a purchase, even if you have lost a receipt.

Using a business credit card is not only a strategic move for any business, but the cards are also becoming ubiquitous. Especially if you have a small business, rather than have your employees charge their purchases to their own cards or (even worse) pay with cash, consider investing in a small business credit card. Most companies offer low-interest, free business credit cards to businesses with a solid credit history.