Paying for business purchases on a charge or credit card can assist in small business management. In fact, most small business owners rely in some type of business plastic to acquire business-related goods and services and pay for the costs of doing business.
According to the March 2003 OPEN Small Business Semi-Annual Monitor, 74 percent of small businesses use a credit or charge card to pay for various business expenses.
Review the benefits listed below to make sure you get the most from your charge or credit cards.
Learn more about business Charge and Credit Cards from American Express  .
Expense tracking
By paying for business expenses with plastic, you generate a record of monthly and annual expenses. This record, provided to you from the card company, can assist in tax preparation, expense projections, and cost cutting. For example, it can provide you with a categorized list of business expenses at tax time, or let you view spending trends by employee or product/service category.
Reduced reliance on petty cash and business checks
Using charge and/or credit cards for business purchases cuts down on your need to raid the petty cash box or write business checks when you need to buy something for your business. Reduced reliance on both petty cash and business checks can simplify record keeping significantly. Minimizing use of petty cash and business checks by employees can also help reduce the chance for employee fraud by providing you with a printed record of each dollar an employee charges.
Rewards for dollars spent
More choices than ever before are available for a per dollar payback on what you spend on a charge or credit cards. Common rewards include airline or hotel points, and credits or dollars toward specific merchandise. For example, the Membership Rewards® program from American Express®.This program lets you redeem points for travel, merchandise, and other rewards for your business. Other cards enable you to earn a cash rebate on purchases.
Simplified bill paying
When business expenses are accumulated on your card, your business needs to write and track fewer checks. Fewer checks in your business means less effort spent on bookkeeping and check writing when bills are due. For example, by charging certain wholesale purchases instead of paying each one separately, you can consolidate these bills on one statement instead of having to negotiate individual terms and bills from multiple suppliers. It may even be possible to consolidate certain monthly bills – such as those for your cell phone, long distance, or Internet access – on your card, further simplifying your record keeping.
Money management
The “float” that comes from having breathing room between the day you purchase an item and when the bill is due provides a welcome cushion to many businesses managing cash flow. In addition to the standard float, credit cards let you carry balances for a prolonged period, which can prove helpful when large purchases are at hand or when cash is tight. Some cards now let you pay off partial balances monthly and carry larger balances forward as needed.
Learn more about business Charge and Credit Cards from American Express .
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