3 Things You Should Know Personal Credit Cards & Company Expenses
It is common to incur business expenses when you’re working. Expenses can range from small charges such as a taxi ride, to big-ticket items such as a business trip halfway across the world. In the absence of other options such as petty cash funds or corporate credit cards, you may be expected to cover business expenses out of your own pocket and be reimbursed later.
While smaller expenses are typically not an issue, you may not be in the financial position to fork out large sums of money upfront. In such a situation, charging business expenses to your personal credit card ends up being the alternative.
However, before you start charging company expenses to your own credit card, here are 3 things you should do:
Check the expense reimbursement policy
Every company has its own set of rules. In order to ensure that your expenses are duly paid, it is important to follow company guidelines and check if there are any limitations. For example, some companies do not allow employees to make their own arrangements for business trips and ask that all bookings be made through the travel desk.
Being aware of the policies and procedures can save you from any hassles with the finance team when it’s time for expense claims.
Make the most of your credit card benefits
Once you’ve cleared personal credit card usage against company policy, you need to pick the right cards to get more value out of your transactions.
If you’re going for a business trip and can book your own flight and accommodation, you could make use of credit cards that offer miles, limousine transfers, concierge services, airport lounges or hotel upgrades. For instance, the Citi Prestige Card comes with travel benefits that will make your overall experience quite comfortable, including airport lounge access and limousine transfers. It also offers a decent number of miles per dollar spent. However, if you’re most concerned about miles, the UOB PRVI Miles Card is ideal for you.
A little research can go a long way in finding the best credit card for your needs.
Keep track of your credit limit
Although the thought of gaining credit card rewards is tempting, it is important not to go overboard.
Take note of the credit limit prescribed by your credit card provider before charging expensive office equipment or a big company dinner to your card. You should be left with enough credit balance to cover your personal expenses.
After you’ve checked all these points, you’re all set to make use of your credit card for company expenses! To make claims easier, keep a list of the business expenses you charge to your card so you don’t mix them up with your personal expenses. Most importantly, remember to pay your credit card bills on time to avoid unnecessary charges.