Use of Company Credit Cards for a Self-Employed Business
If you run your own business as a self-employed individual, you need to keep careful track of the expenses associated with the day-to-day operations of that enterprise. You also need to keep your personal expenses separate from your business expenses, since your business costs are deductible for tax purposes.
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Automobile Costs
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Keeping track of your auto costs is important when you use your vehicle exclusively for business purposes. Oil, tolls, parking, gas and repairs are deductible.
Office Supplies
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From paper clips and rubber bands to printers and ink cartridges, buying all of your office supplies with your business credit card makes it easy to keep track of those expenses and spot any spikes in cost. Knowing how much you spend on office supplies each month allows you to shop around for a less costly vendor and economize by purchasing in bulk. Having all of your office supplies billed to your credit card also makes it easier to write those costs off when you itemize your tax deductions.
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Professional Subscriptions
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As a business owner, you might need to subscribe to a number of publications that relate to your area of expertise and your business niche. Those publications can include trade publications, specialty magazines and newspapers dedicated to your business area. Charging those publications to your company credit card makes it easy to identify your expenses at tax time.
Professional Services
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Self-employed business owners can use their company credit cards to pay for the cost of professional services, including tax preparation and accounting, legal help and advice and financial planning.
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References
- Photo Credit businessman with the credit card image by Dmitri MIkitenko from Fotolia.com
