Running a business involves managing various expenses, from office supplies to travel costs. Using a business credit card for these transactions can offer multiple benefits, including rewards, easier expense tracking, and improved cash flow management.
If you’re looking for the best credit card for business expenses, it’s important to know which expenses you plan to charge to maximize the card’s unique benefits and perks. Luckily, there are several purchases you can use a business credit card for and some cards are geared toward your specific needs whether you have a large advertising budget or need to travel several times per year.
Why should you use a business credit card for business expenses?
Using a business credit card for your business expenses comes with several advantages but one of the main ones is being able to separate your personal and business expenses. Separating expenses can help you stay organized and make things less stressful during tax season.
Another common benefit of using a business credit card is to earn rewards and cash back. Many cards offer rewards programs allowing you to earn points or cash back on everyday spending as well purchases in specific categories that are common to business owners.
Business credit cards can also help you build your business credit score making it easier to secure loans and better terms in the future. If you have employees, many cards allow you to issue credit cards to your team members with set spend limits. That way, you can better manage business spending as a whole and spending from the employee cards can also count toward reward earnings.
Expenses you should always charge to a business credit card
- Business travel: Booking flights, hotels, and rental cars with your business credit card can help you earn rewards and streamline expense tracking.
- Client entertainment: Taking clients out for meals or events can be charged to your business credit card, simplifying expense reporting and helping you earn rewards in the process.
- Online subscriptions: Services like Adobe Creative Cloud, Dropbox, and Microsoft Office can be charged to your business credit card for easy tracking.
- Insurance premiums: Business insurance premiums are an essential expense that can quickly add up over time. Charging them to your business credit card can help you keep track of payments and you can potentially earn rewards on this necessary expense.
- Office supplies: This is one of the most common expenses to always use your business credit card for since you may earn bonus rewards in this expense category.
- Website hosting: If your business has a website, it’s likely that you’re paying for hosting services. Charging these expenses to your business credit card can help you earn rewards especially if your card offers 1% back or more on all purchases.
- Business memberships and subscriptions: Whether it’s industry-specific memberships or subscriptions to trade publications, using your business credit card can make managing these expenses easier.
- Employee training and development: Investing in employee training and development is crucial for a successful business. Using your business credit card can help streamline payments and potentially earn rewards. For cards that reward higher amounts of spending, these purchases can better help you meet those thresholds.
- Office rent: If you’re renting office space see if you can pay this with a business credit card to maximize rewards but check to make sure there isn’t a high credit card processing fee.
- Advertising: Advertising expenses can add up quickly but some business credit cards offer additional rewards for this spending category.
What is the best credit card for business expenses?
Business owners tend to have a lot of expenses, so it makes sense to earn rewards from your spending on daily operations. The best credit card for your business expenses ultimately depends on your unique spending habits and needs.
Some may benefit from a card with high rewards for travel, while others may prefer cash back on everyday purchases. When determining what to look for in a business credit card, consider which categories you spend the most in and choose a card that aligns with those expenses.
Also pay attention to fees, interest rates, and any special perks or benefits that may be included. This will help you find the best credit card for your business so you can start optimizing your spending.
Best for office supplies and equipment: card_name
One of the best credit cards for business expenses like office supplies and equipment right now is the card_name from Chase. This card offers 5% cash back on the first $25,000 spent each year at office supplies stores as well as on internet, cable, and phone services.
While there’s cap of $25,000 per year for maximizing rewards in this expense category, you’ll still earn 1% back on all other purchases. This card also offers 2% back on the first $25,000 spent annually in combined purchases at gas stations and restaurants each year and employee cards at no additional cost.
Best for marketing advertising: card_name
Investing in marketing and advertising is important for business growth. Whether it’s digital marketing, print ads, or social media campaigns, using a business credit card strategically can help your money stretch further.
The card_name is a great option for business owners who spend a lot of money on search engine and social media advertising. This card offers 3X points per dollar spent on digital advertising, shipping purchases, travel, and internet, cable and phone services up to $150,000 for the year. You’ll earn an unlimited 1X point per dollar spent afterward as well as for all other purchases made with the card.
This card also offers 5X points per dollar spent on Lyft rides through March 2025 and has a generous sign-on bonus. You can redeem rewards for cash back, gift cards, or even travel since points are worth 25% more through the Chase Travel™ portal.
Best for travel and transportation: card_name
The card_name discontinued_disclaimer is an ideal option for business owners who are looking to save on travel and earn more miles and points for business purchases. With this card, you earn 3X miles on Delta purchases and purchases made directly with hotels as well as 1X mile on all other purchases. American Express is a CardRatings advertiser.
This card also comes with 15% savings for award travel booked through Delta.com and the Fly Delta app. While the card has a higher annual fee (annual_fees; See Rates and Fees), you also get perks such as:
- A companion certificate for domestic, Caribbean or Central American destinations after your card renewal each year
- 1.5X miles on transit including taxis and rideshares as well as 1.5X miles at U.S. shipping providers on eligible purchases of $5,000 or more for up to $100,000 in combined eligible purchases per year
- First checked bag free on Delta flights
- Fee credit for Global Entry or TSA PreCheck
- Up to $200 back on eligible prepaid Delta bookings each year
- Up to $120 rideshare credit per year ($10 per month back; enrollment required)
Just like with any branded airline card, this card is best for people who use this particular airline often and can take advantage of most of the benefits. If you prefer to shop around for travel and try other airlines or hotels, consider the card_name which offers unlimited 2X miles on all your business purchases and 5X on hotels and rental car purchases through Capital One Travel.
➤ SEE MORE:Best small business credit cards
Tips for maximizing rewards and benefits of business credit cards
To make the most of your business credit card, here are some things you can do:
- Leverage the introductory offer: Many business credit cards offer sign-up bonuses or introductory 0% APR periods. Plan large purchases around these offers to maximize benefits so you can earn a lot of bonus points or miles during your first few months of holding the card.
- Plan to spend in certain categories: Get into the habit of using your credit card for expenses like marketing, office supplies, website hosting, and internet services. If you regularly make purchases with a particular retailer or vendor, save your card information to that website securely so it’s easier to place orders or you can even set up automatic recurring orders.
- Monitor employee spending: If you issue cards to employees, set clear spending limits and monitor transactions to ensure compliance with company policies.
- Combine card usage with other rewards programs: Some business credit cards allow you to transfer points to other reward programs, such as airline miles or hotel loyalty programs, for even greater value. With business purchases though, you can also sign up for loyalty programs with retailers you use to earn any rewards they might offer. For example, if you buy office supplies from Staples, you can join the free rewards program to earn more benefits in addition to those offered from your business credit card.
See Rates and Fees for the card_name
