Its funny i find my self reading about Business Credit Cards today. My Name is Joshiwa Winters I formally worked at Bank of …. and One thing I wanna talk about is credit card Dept. If your business should ever fail for any reason there is a wonderfull way to get the dept consildated and in check in order to move on a option known as settlements in which you give the bank an offer and settle the dept. I always suggest using a service to do this because they usually can nogatiate it for the lowest price possible.
Call me for more info. (602)-626-4230

I’m sorry, but you’re wrong about the protections of debit cards vs. debit cards, especially if you use a Visa debit card.

In its terms of use on Visa’s web site, it clearly outlines how debit and credit cards with the Visa name have the same types of protections. You’re perpetuating a myth about debit cards that really needs to stop.

I thought I’d point out that most small businesses are started on credit cards, and I think it’s a pretty big stretch to say that people shouldn’t use credit for that. Would surely limit the type of people who can start businesses, and the type of businesses people start.

And, as someone who has the typically complicated tax return of a freelancer, a separate card for deductible expenses has, in the past, saved me hours and hours of tax preparation work.

So good advice, Anne!

Penelope

Of course everyone should be careful about taking on too much debt–but the point I made here is that a credit card can help with recordkeeping for deductible expenses. I did not argue for using it for spending money you don’t have.

Personally I never run a balance on my credit cards–so a separate business credit card doesn’t mean I rack up more debt, it merely means I have a better way to track expenses. It also makes me more aware when I am spending money to make money versus spending money because I want something personally. That’s good awareness to have.

First of all, you DON’t need a credit card for business. A debit card will work just fine and will have all the abilities of a credit card with the exception of putting you on a mountain of debt.

Second, not only should you have a separate spreadsheet for expenses, but you should have a totally separate bank account for your business. In addition, instead of spreadsheet, you might it beneficial to use a professional accounting system such as Quickbooks to manage all of your stuff.

Finally, too many of todays businesses are in a financial wreck or got started because they were given a loan. I use the theory that if you can’t buy it with cash, then you don’t need it right now. But then again, I started the business on 100% cash basis and have never had any debt with it.

For those of you that are looking for great money advice, check out http://www.daveramsey.com. He can change your life. I listen to his show every day as it is free on the net.

Good luck!