Business Lines Of Credit Vs Credit Cards
Posted on November 15, 2008 - Filed Under Business | Leave a Comment
Business lines of credit and credit cards have traditionally and effectively been used to finance small business operations. The similarities between these two types of financing are as follows:
Both, business lines of credit and credit cards are revolving
Both charge interest only on outstanding balances
Both have pre-determined borrowing limits
The primary difference between the two, however is that, credit lines tend to be more cost effective than credit cards by virtue of having lower interest rates and higher available limits. However, both methods of financing have their benefits and disadvantages and are not mutually exclusive. Along with a business line of credit you could also have one or more business credit cards especially for business expenses.
Credit Card Vs Store Card
Posted on November 5, 2008 - Filed Under Finance | Leave a Comment
You've battled through the crowds, you've fought with the obnoxious fellow customer and got hold of the dress you both wanted. You've tried it on in the changing room with the fun house mirror that makes you look like the blimp from hell. Now you've reached the cashier to buy the dress after waiting in a pushing, thronging queue for 20 minutes. You're hot and bothered, and just want to pay and get home. So when the assistant offers you the inevitable store card, you're so flustered you agree to it without thinking.
Credit Card Q&a In Quickbooks
Posted on September 20, 2008 - Filed Under Business | Leave a Comment
Sometimes new users of QuickBooks have questions about how credit card work in the software. Here are some helpful bites of information about this subject.
Aren't Credit Cards Expense Accounts?
No. In the Chart of Accounts, liability accounts represent amounts of money owed to others. Credit cards are liability accounts, because every time we use our credit cards, we owe money to the credit card company. One nice feature of QuickBooks is that it allows us to set up a special type of account for credit cards, called, not surprisingly, "Credit Card."
But make no mistake: this type of account is a liability, and not an expense. When you buy something with a credit card, you are paying for it with borrowed money, and the money is borrowed from the credit card company. This is why credit cards are considered liability accounts.
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