Gas is the lifeblood of our economy. It gets us to work, it gets us home, it keeps the arteries of industry pulsing and moving 365 days a year. Without it it would be very hard to do anything, and if you own your business odds are you own a car as well. Gas can be an expensive necessity, and you may be wondering if it’s okay for you to use your business credit card to ease your gas burden.
Our bookkeepers and accountants at Hacker Accounting have years of experience sorting through business’s accounts and expenses. We’ve seen what to do and what not to do. The short answer is yes: You CAN use your business credit card for gas. You just have to do it responsibly. Here are a few things to watch out for and take into consideration when using your business credit card.
Tracking your expenses
One advantage of using your business credit card to buy gas is that it makes it a lot easier to track all your expenses. If you’re using cash, the only paper trail you leave is your receipt. By using your credit card, you have that information at your fingertips whenever you need it. Having accurate records of your gas purchase can help establish some valuable metrics, like figuring out exactly how much gas you use for your job.
Related: 6 Ways to Save Money as a Business
Buying gas on your card and promptly paying it off has the added benefit of helping your credit. By consistently making small purchases with your business credit card and promptly paying them off, you’re slowly building a better credit profile for your business. It’s important to keep that business card active if you want to super-size your credit.
Be careful not to mix your personal expenses with your business expenses. Whatever gas you buy on your business credit card should be gas you’re using for business purposes only. This is pretty easy to do if you’re using a company car. If you’re using your own vehicle, this is where things can get tricky. Gas expenses are not deductible for personal use.
When using your business credit card for gas, keep careful records. Make a note of what your mileage is on your speedometer whenever you drive for work purposes, track how much of the gas you’re using while on the clock and write down where you’re going. It may seem like a lot of record-keeping, but if the IRS asks you to justify your gas write-offs you need to be able to back it up.
Keep your business running as smooth as your car. Give Hacker Accounting a call at 602-375-5251. We’ve got the accounting experience and expertise to help your business go the extra mile.