If you have a small to medium-sized business, you know very well that managing your business’ financial aspect is just one of the things that need attention. Aside from allowing various payment channels for your clients through the use of a PDQ machine or other payment methods to ensure smoother incoming financial transactions, you also must ensure that you maintain a good credit standing.
Having good business credit is crucial in the effective management of your business. Doing this means paying your business credit cards regularly and on time. Owning multiple credit accounts is beneficial for your credit standing as it demonstrates your ability to manage various accounts effectively.
Here are some tips on how to manage your business card payments:
- Separate business and personal accounts
This is a basic yet crucial part of managing your business. Ensure that your business’ financial affairs don’t mix with your personal accounts. It is helpful to keep a systematic record of your business’ financial transactions, which can be made simpler with the help of monthly reports from your business credit cards.
- Manage cash flow well
An important step in successfully managing your business is keeping an eye on cash flow. Bad cash flow can easily get you out of business, which is where credit cards can offer tentative help. When your cash is insufficient to fund your supplies or when you encounter unexpected expenses, for example, using your credit card can help you solve this trouble. The monthly statements can also give you a concrete idea on how much funds you have spent on what and when. With your monthly statements, you can easily spot red flags such as overusing or misusing your business cards.
- Manage your business mail
As trivial as it may sound, your business’ finances depend largely on your mail since this is where you get your bank statements and bills. Review your business card statements as soon as you can after receiving them. If you find an error, you can immediately have it clarified through a phone call or a visit to the bank.
- Make use of banks’ rewards
Banks usually offer incentives to entice you in using your credit cards. These incentives can vary among banks, so it’s quite helpful to know more about these incentives and make use of them. The incentives can vary from discounted or free equipment, office supplies, fuel, or airline tickets.
- Implement a solid expense management to help save money
Managing your expenses well is making sure that everyone in the business is spending the business money honestly and carefully. Here are some tips to keep in mind:
- Ensure that you don’t make purchases that aren’t related to your business objectives.
- Identify purchasing patterns of your business. This means that if you analyze your spending, you will know what category of products you are spending more on.
- Consider making wholesale purchases for this area, which may give you useful discounts.
- Make use of account alerts
Today, most credit cards come with fraud alerts where the card company notifies you to approve a transaction, which could be fraudulent. But there are some companies that provide additional notification alerts that you can customize to give you better expense management information.
- Observe employee credit card expenses by requesting daily account snapshots.
- You can also set a tracking alert for credit card purchases that are higher than your given spending threshold.
- Tracking your employee cards can help you check for abuse as well as be aware of payments that result from business problems you may not have noticed.
- Take advantage of business card mobile apps
Most credit card companies provide a user-friendly app to help you effectively manage your business’ expenses. You can use the app for making payments, viewing new transactions, and checking incoming or outbound payments. You may also use the app to remove or add authorized cardholders and adjust spending limits.
- Manage individual employee spending
The credit card company may offer reporting tools to help you observe the behavior of each authorized cardholder, check individual transactions, and summarize spending into categories.
Checking credit card transactions can help you discover fraud while also helping you manage your business’ expenses by checking for potential misuse of funds.
Ensuring that you pay your business credit card on time will help maintain your good credit standing. This means that you must manage your business finances well, including monitoring individual employee credit cards to watch out for overspending or misuse issues. With the help of automated alerts, mailed bank statements, mobile apps, and some finance management skills, you can make card payments on time.