Benefits of a Gas Credit Card For A Small Business

Gas credit cards might not be as popular as airline or cash back credit cards among consumers but businesses small and big have been reaping the benefits of gas credit cards for a long time. In the past the gas cards could only be used to make purchases at the gas stations but now there are a number of cards that include the Visa and MasterCard logo making it an even more flexible choice for small businesses. There are many advantages that small businesses gain from gas credit cards a few of them are outlined below.

Gas Credit Cards Help Small Business Owners Manage Their Budget

Perhaps the biggest benefit that small business owners gain from gas credit card is the effective management of their monthly budget. The monthly statement will reflect a comprehensive breakdown of all the charges for that particular month. With it the business owner can get a clear picture of the money being spent on travelling without having to go through a number of paper receipts to find out.

Having an overview of the gas budget also makes it that much easier to forecast the spending for the upcoming months.

Save Money On Fuel Costs

In the operation of a small business every penny counts. Gas credit cards allow business owners to earn rebates on their fuel purchases. The earnings can be accumulated either as a percentage of the total purchase or as a dollar value for every dollar spent. For example most programs give 2-5% back on purchases or the savings can be given as $0.05-0.10 per gallon. Either way for the savings are significant for the business if a lot of travel is involved.

The rebates are issued as a credit on the account statement or sent as a check to the business.

Keep Track Of Employee Spending

When there is employee traveling expenses involved having multiples cards under one account with a preset limit for each employee makes it possible to keep track of employee spending. In this way employees do not have to use their own cash and then file for reimbursement. It just becomes a lot easier to manage when they are assigned a limit to use every month.

If the employee does a lot more travelling in one particular month it would be a lot easier to keep track.

Easy Bookkeeping

Keeping up with the business spending is difficult even for the most experienced accountant. Many times small business owners are forced to do the regular bookkeeping on their own and only use an accountant for the heavier stuff. With gas station credit cards they can have all the travelling expenses charged to one account and pay it off monthly with one single payment.

Furthermore using the card to pay for fuel frees up the cash to use for other purposes. It is important, as I am sure that most business owners know, to pay off the card balance every month to avoid high interest rates.

Build Business Credit

Gas station credit cards are sometimes easier to qualify for than other types of cards. If the business credit is relatively new having a gas credit card could really help. As long as the payments are made on time and the company reports the activities to the business bureaus it will help to build up the business credit.

We recommend you check out the best gas rebate credit card on the market.

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