The idea behind allowing employees to have their own company credit cards tends to be focused on security and convenience. There is simply too much that can go wrong by handing an employee cash— there is no protection against it getting lost or stolen, and it can’t be canceled and reissued. When it’s gone, it’s gone.
Checks are an alternative, but then you have to write out a check to every single vendor your employee does business with— not to mention many businesses aren’t thrilled about accepting checks, even business checks. Hotels are a perfect example: if your employee is traveling and needs to stay the night out, it’s unlikely a hotel or motel will accept a secondhand check as a form of payment.
If you’re still giving your employees cash or checks to conduct business regularly with, it’s time to consider the convenience of a business credit card. Before you hand one over, however, here are a few things to keep in mind.
File management may be one of the most mundane tasks when it comes to administrative duties, but properly organizing and storing documents and files will save a lot of time and manpower in the workplace. Occasionally you may need to retrieve a large number of files to check back on records if problems come up or to file a tax return, and being able to locate those files as soon as possible will help you to complete the task quickly and easily. The following tips will help you to effectively manage your files.
1) Keep Personal Expense Accounts Separate from Business Accounts
Personal expenses are not currently tax deductible, so you can save yourself time in the future if you keep all personal expense records separate. What exactly constitutes as a personal expense can sometimes fall into a grey zone, but an accountant should be able to help you out with extra advice.
You want to pay down your debt, but your income has been about the same amount for the past two years. Ideally, you’d like to redesign your website, hire an employee to assist you at your business, buy a MacBook Pro, and begin establishing a social media presence. But your credit cards and any other outside debt are killin’ you. Much of this may be linked back to the fact that you could be spending around $200 a month in additional interest which could be going towards trademarking a logo design or buying some software you really need.
You feel stuck because you are not sure what to do – pay down the debt or invest in your biz? If you rack up more debt, you will just dig a bigger hole for yourself. If you make the minimum payment on your debt, you won’t chip away at reducing it. Total deer in the headlights moment. Continue reading