Until you get your business credit going, you are probably going to need to use your personal credit card to pay for business purchases. It’s not ideal, but it’s often a fact of life when you’re first starting out. As soon as possible, get your business its own card.
Until your business has its own credit card, follow these six steps if you use your personal business card:
- Keep copies of receipts whenever the personal card is used for business purposes.
- When you receive your monthly statement, or print it out from a website, highlight the business expenses.
- Submit an expense report to your business from you, as an employee and/or owner.
- Attach a copy of the statement with the business expenses attached as well as the store receipts.
- Total the reimbursement amount.
- Business writes you a check for this, as a reimbursement of expenses.
Keep a very clear audit trail any time that you combine personal and business expenses. And, as soon as possible, stop the practice. This could seriously jeopardize your asset protection plan down the road.
This is just one of the hundreds of tips in Smart Business Stupid Business. Pick up your copy while the Smart Business Smart Investment 2 for 1 Special still lasts!