Instead of spending cash, you might want to use your credit card instead. Besides the convenience of not having to lug around wads of cash, carrying plastic can also help make your life easier when tax time rolls around. Moreover, keeping a centralized record of your expenses might make for better business planning and management all around.
Here are just some of the reasons why you should use plastic more often instead of using cash.
Deductible expenses are easier to track
If you own your own business or have a side consultancy or service gig you earn with, you need to track your expenses so you can reduce your taxes. You also need a very easy to track paper trail so you can clearly analyze your expenses so you can be sure that you claim what you need to claim and leave off the stuff you need to skip. Compare this centralized record keeping with the messy paper hunt you often have to engage in if you use cash.
People lose receipts all the time. It is harder to lose credit card statements. If you lose them, you only need to call your credit card company to get a copy sent to you. There really is no comparison. If you don’t have a business, this clear record keeping can also help you.
Keep track of warranties
If you signed up for a long term service contract, you probably will have to dig up your account number at least once during the life of the contract. Being a regular busy person, chances are high that you probably won’t have that number in hand. You probably will have a tough time finding that number.
When you use a credit card, your card company will put the account number and support phone number of the service in your statement whenever the service makes an automatic charge against your card. This is so handy and is way more convenient than having different folders where you store all sorts of account numbers. This is especially useful when you are dealing with warranties.
Easier to review
Finally, another great advantage of using credit cards for all your purchases is the fact that you can easily review your purchases from your statement. No need to get lost in receipts or deal with confusing paperwork. Most statement items are very clear, and you can easily figure out what you purchased, when you bought, and for how much.
Also, the company’s customer service number is also included so if there are any disputes, you only need to call the number on your statement to fix the problem.