
Business Forecasting: Get Your Revenue & Growth Numbers Nailed Down
Whether you’re a veteran small business owner or just starting out, we can’t emphasize enough just how critical business forecasting is for your short-term and long-term prospects.
As a small business owner, you know that tracking your expenses can be a chore, especially if you’re doing it yourself. Making company purchases on your personal credit card is a great way to track spending while:
By using a personal card for business expenses, you run the risk of commingling your funds, increasing your credit utilization ratio, and negatively impacting your credit score. This is why it’s crucial to understand how to record business expenses paid by your personal credit card.
Maybe you only use your personal credit card once in a while for business expenses — or you don’t have a business credit card, and you decide to invest in a large purchase with your personal card.
You are fully aware you should show this investment as a company expense, but you aren’t sure how. The simplest way is to bill yourself using the software of your choice, including:
The following are steps to take if you do your bookkeeping using QuickBooks Online, Essentials, Plus, or Advanced:
If you use Xero accounting software, record your business expenses paid by your personal credit card by using these steps:
If you use bookkeeping software that lacks bill creation functionality (for example, QuickBooks Self-Employed or QuickBooks Online, Simple Start), you can still record business expenses made with your personal credit card:
For recordkeeping and auditing purposes, identify the transaction by noting in the memo line or description that you generated the payment to reimburse yourself for a business expense made by your personal credit card.
Consider expense management software if you have employees that frequently need reimbursing or if you operate a more substantially sized small business. These online programs will simplify your life so you can turn your attention to more important activities that will bolster your company’s bottom line.
Use this software for submitting expenses to be recorded and reimbursed and made through personal or non-business accounts include:
Keeping your personal and business expenses separated simplifies your bookkeeping. And if you make your payments on time and use your card wisely, you can use it to significant effect to pay your company’s expenses.
One thing you’ll want to avoid is commingling business and personal expenses. An excellent way to prevent this is to designate a credit card for business purchases only — even if that card is your personal credit card.
This way, you can avoid having to sift through your receipts or your credit card’s transaction feed to determine the purchases that were business-related and were not.
If you use your personal credit card to pay your business expenses regularly, be sure to record them accurately, using software or whatever method you choose.
For example, if you incur $200 in travel expenses and put it on your personal Visa, be sure to debit it to your travel expense account. Meticulous recordkeeping will satisfy the IRS in the event of an audit.
Regarding any business purchases made with your personal credit card: the more information you can provide, the better.
Avoid mingling business and personal spending on one card. Even if you choose a personal credit card to pay for business expenses, don’t put personal expenses on it. This can lead to a bookkeeping disaster.
Better yet, apply for the Revenued Business Card. Our versatile card’s associated merchant portal has robust online tools to help you track your business expenditures. Use your Revenued Card anywhere debit and credit cards are accepted. Be first in line to apply by calling our friendly customer service, +1 (877) 662-3489, or join the waitlist.
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Whether you’re a veteran small business owner or just starting out, we can’t emphasize enough just how critical business forecasting is for your short-term and long-term prospects.
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