Expert: Shirley McAllister, CPP, PHR - 7/12/2009

Question
Hi Shirley,

I know this is not your specific area of expertise, but you're the closest I could find.

I am in the process of opening my own financial advising practice. It has been suggested to me that I get a business credit card, and put all expenses onto that, as a way of separating business from personal expenses in a documented way.

I am looking at American Express Business cards, and don't understand what the advantage is. You have to pay off the entire balance monthly - what is the advantage to using a card like that? Why wouldn't I just use a debit card?

Would you recommend an American Express card for a small business owner, or a different card?

Thanks.
-Dave

Answer
I use no credit cards for my small side business I do at home.

I set up a separate bank account with a debit card and I use this for all the expenses for the home business.

I don't use credit cards because I do not want to pay the fees associated with them and the debit cards works great.

Shirley