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Money in all its forms, whether it is cash, checks, debit cards, or credit cards, fuels small business and the economy. Your business likely relies on a combination of these monetary instruments each day. When looking at the advantages and disadvantages of both business checks and credit cards, what is the combination that fits your needs best?
There are an estimated 609.8 million credit cards in the United States, according to the Business 2 Community website that examined usage statistics for 2012. Travel expenses were the most common use for credit cards at 81%, with expensive purchases as a close second at 77%. While this largely applies to personal use, credit cards also play a prominent role in the professional world.
According to the National Small Business Association's 2012 Survey of Small and Mid-Sized Businesses, credit cards are one of the largest sources of financing for small business owners. In fact, during the past 12 months, 37 percent of small businesses relied on credit cards to help finance capital needs.
Credit cards have a somewhat seductive appeal. Many credit card companies offer incentives such as no annual fees, exclusive deals, airline miles, low interest rates, reward points, and cash back. Most notably, credit allows small businesses to purchase items that may not be possible with cash on hand. However, that same convenience also makes it easier to exceed financial boundaries and incur expensive repercussions down the road. Additionally, the fine print may bind your organization to some uncomfortable (and unexpected) terms and conditions once the initial perks expire.
Credit card safety and security may also cause you to think twice before you swipe. According to Statistic Brain, credit card fraud totals $5.55 billion worldwide. Online theft and identity fraud are a reality today, and require all credit card holders to be vigilant and cautious. Statements must be read carefully, line by line, to ensure that any activity is your own. Additionally, it is wise to keep business and personal expenses separate. The SBA.gov site reports that over 65% of all small businesses use credit cards on a regular basis, but less than 50% of these cards are in the business name. When lines are blurred, bookkeeping becomes complicated and could place personal assets at risk. Alternatively, business checks are a safe, efficient, and effective solution.
Many organizations rely on business laser checks that are paired with accounting software programs like QuickBooks or Peachtree. Checksforless.com offers laser computer checks within 4,500 different software titles that are customizable to represent your brand. Laser checks are created in the accounting program and printed on-demand. All financial transactions are immediately logged into the system, and all records are updated in real-time. This process saves time, money, and boosts financial accuracy.
While in this increasingly digital age, it may seem that paper checks are more inconvenient than credit cards. The fact is, the combination of in-house automation software and laser printed checks give your business many unique advantages, including enhanced security features. Unlike credit cards, these checks are directly tied to the business identity, branded with your company’s logo, and as such are harder to steal. Business laser checks also give organizations more financial power. While credit card transactions are often separate from financial records (typically requiring manual input into spreadsheets or accounting programs), laser checks provide an instant financial snapshot with each transaction. With an accurate view of the current financial standing, forecasting, budgeting, and monitoring cash flow are all simplified in real time.
While business credit cards can be helpful on many levels, they should never be seen as a complete solution. Laser checks are an efficient form of payment, as well as building blocks to a solid foundation that supports your business’ solid financial standing. Why not order laser checks for your business online or by phone from Checksforless.com now and save!