Building your business using your credit card is generally a bad. Having said that, there has been a shift nationwide moving routine business expenses such as materials, wireless, long distance, shipping, insurance and computer services to reward-rich credit cards. Do you have one of the three AAA's (Air miles, Aeroplan or Aveon). There are many other programs out there and using these can realize a hidden
profit center in your Accounts Payable.
Business Owner Beware
There are some pitfalls to this and does require planning and real discipline. If you exceed limits and don't pay the bills, you will encounter fees and interest that will wipe out any advantages of earning those points. Having said that, lets move on to the good stuff.
Use your credit card for payment
All those bills you are paying today by check, can you pay them by credit card? The rewards that accumulate will help reduce travel expenses, purchase merchandise and will generally push cash to the bottom line. Best yet, most rewards are transferable and tax free.
Credit card discount?
Often placing a credit card on file with a supplier should get you a few percent off your orders. If they don't offer it up, ask for it. A credit card will make it easier for them to collect payment without having to spend labor on statements and phone calls to collect.
How do YOU use your points?
Many business owners treat this as their built in vacation options. Using the points to encourage them to take time off from the business. This can help you fly to a trade show or other business event and
make you more competitive. We have seen business owners using rewards on employees to creating a retention perk to working hard in the company. There is value in those points. We have even seen them being used as tender in both supplier and customer negotiations. Offer up a reward to a great supplier to "grease the wheels of future discounts" so to speak.
This is another example of something that you are doing in your business already that can be turned into a newly found profit center. Further stimulating your businesses economic engine. If choosing to take advantage of this you will want to have controls in place for reconciling your credit card transactions. Windward solutions will make this discipline easy to preform. We help you run your business, not just report on it. To discuss this further,
you can reach us at (800) 663-5750 or +1 (250) 492-8888.