Why bother with a home business credit card ? Well…..from a tax and accounting perspective it is important to separate your personal income from your business income.

This also applies if you have multiple businesses. Keep a separate set of accounts for each business.

Once you have separate accounts setup, accounting for all the revenue and costs for your businesses becomes a whole lot easier.

The same applies to your credit card (or cards). Don’t make the mistake of putting your business expenses on a your personal credit card.

Having a separate credit card is handy for any home based internet business. Most of the products for sale online today require a credit card for payment. This especially applies if your advertising with the larger PPC programs link Adwords.

We run three separate accounts for our online home business:

  • An ordinary savings account where Adsense earnings are deposited, along with cheques for affiliate earnings.
  • Our Paypal account where earnings from suppliers prepared to deposit into Paypal are accepted, and where we pay as many of our costs as possible (Being based in New Zealand it helps minimise exchange rate fees).
  • The final account is a separate credit card account. This pays the Adwords bills and covers for times when Paypal is not accepted. All debits on this account are paid within 30 days of the cost being incurred. This ensures that no interest is paid on purchases.

In choosing a credit card for this purpose there are a couple of things to take into consideration:

  • Since you pay off the credit card each month, the interest rate is of little importance.
  • Find a card with low fees or no annual fee. By being careful with your credit card selection you can hold your costs for the card to an absolute minimum

For more information:

Filed under: Notes

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts