The Perks of an Amex Card for Small Business

Jan 3, 2022 | Business Basics, Saving

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If you own a business, chances are you’ve received a credit card offer or two in the mail. Whether you’re an old pro at maximizing credit card benefits or a newbie interested in learning more about the perks, we’ve got you covered.

This month, we’re discussing the tax and financial benefits of utilizing a business credit card. Let’s get started!

First Things First: Yearly Fees

Although some cards come without fees, choosing a business credit card with annual fees can unlock better benefits. Tax Savvy Jessica’s recommended business card, the American Express Business Platinum Card, charges a yearly fee of $695. This might sound shocking, but when you consider all of the benefits that come with the card, and the fact that the yearly fee is a deductible business expense, the card is really a steal.

What are the standard card benefits?

  • $400 statement credit for purchases from Dell Technologies
  • $360 statement credit for purchases from Indeed
  • $150 statement credit for subscription purchase through Adobe
  • $120 credit for wireless telephone services
  • Access to more than 1300 airport lounges around the world
  • Earn points purchases that can be spent on airfare and hotels
  • …and more! Check out all of the benefits offered by the American Express Business Platinum Card here.

Use Your Card to Optimize Cash Flow

When you’re running a small business, cash can sometimes get tight. You may find yourself needing to pay a bill while waiting on payment from a customer, but unable to make payment due to a cash flow gap.

Having a line of business credit to fall back on is often a welcome source of security. As long as you’re paying off your bill before any interest accrues, making business purchases with a credit card can be a great way of bridging cash flow gaps while also earning points that will benefit your business.

One thing to keep in mind: the IRS wants a business credit card to be paid in full at least every 30-60 days in order to take the deduction for the expenses in that year. We learned this while working through an audit for a client who maintained high credit card balances while making minimum monthly payments. In a situation like this, a line of credit or a loan is deemed more appropriate by the IRS than a revolving credit card.

Earn Points on Business Purchases

One of the most enticing perks of a card like the American Express Business Platinum Card is the ability to earn points on purchases you likely would have to make anyway. These points can be transferred to 20+ travel partners and redeemed for flight and hotel bookings. Who doesn’t love free travel? (Okay – we admit, it’s not exactly “free,” but when you’re earning points on expenses you’re already paying for, it sort of feels like free travel!)

Beyond points, booking a hotel through American Express’s Fine Hotels + Resorts program also guarantees certain amenities and upgrades:

  • room upgrade on arrival (when available)
  • daily breakfast for two
  • guaranteed 4 PM late check-out
  • noon check-in (when available)
  • free Wi-Fi
  • $100 spa and/or food and beverage credit

Tax Savvy Jessica Recommends the Amex Business Platinum

At Tax Savvy Jessica, we partner with American Express to bring the benefits of this valuable business card to our clients. Interested in learning more about how you can leverage a business credit card in your small business? Let us connect you with our representative. Please complete this formto get started.

Hi, I’m Jessica.

I’m the passionate tax-pert behind Tax Savvy Jessica. I spent more than 10 years performing audits for the IRS. My experience there taught me how to understand taxes from the perspectives of both taxpayers and the IRS.

I started Tax Savvy Jessica because I’m passionate about helping small business owners understand their taxes so they can use their money to build the life they want.

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