Cool way one small business takes advantage of credit card benefits

Crowdfunded clothing retailer Betabrand uses business credit card benefits to send employees on international trips. Inventory Manager Delta Cokins (above) will be traveling to Paris in April through an internal program.

In the words of Derek Zoolander, there are more important things in life than running a small business really, really, stupidly well.operating costs business credit card With high compensation rates, you can quickly accumulate enough points and miles to fund a well-deserved employee vacation.

That's the purpose of a manager beta brand, a crowdfunded online clothing retailer that came to fruition last year. So they thought, why not?

“Companies said, 'How can we retain and reward our employees?'” says James Tagliani, Betabrand's director of finance. In January, the company launched a flyaway program that sends employees on a monthly trip using the previous month's credit card rewards. Employees have traveled to Ireland, Japan, France, Iceland, and most recently New York City.

This program is very popular in the workplace. It also put Betabrand, a 60-employee San Francisco startup, on the map as a functional fashion destination and a fun place to work.

If your small business is doing well and you want to get more out of your credit card, here's how to follow Betabrand's example.

In general, if you concentrate your spending on one thing; business credit card The easiest way to earn points faster with a single issuer. Start by finding a card that offers bonus benefits on your company's biggest expenses and flexible redemption options. Record as many expenses as possible in your account.

“We reached out to the vendor and said, 'Can I put that on my credit card?'” Tagliani says. “Some say no. Others say, 'Of course.'” “The company's fee income has increased rapidly.

Betabrand will cover these costs. Capital One Spark Miles for Business Credit cards, redeem miles for travel statement credits. Tagliani explains that the card's flexibility allows the company to maximize the value of its rewards by allowing customers to access great deals on flights and hotels with Expedia Gold status.

Once you've secured your plastic spending, it's also important to pay off your credit card bill in full every month. That way you won't pay any interest. If you have a 0% APR card, you can pay less than your total balance without affecting your reward income, but be prepared to start paying in full again once the APR introductory period ends. please.

Before you book award travel, here are some ways you can make sure your business is maximizing the value of your points and miles.

Prioritize business needs. Award travel is often non-refundable. Carefully consider your business's staffing needs before making a reservation. Betabrand typically schedules trips starting on Thursdays and ending on Tuesdays, so the impact on overall business has been minimal.

If your small business isn't making enough compensation to send your employees on vacation every month, find out what you can do. can Be flexible and adjust your plan to fit your resources. Or see if there are other ways you can use your benefits to help your business more effectively.

Join our loyalty program and earn points. By concentrating your spending on a single airline, hotel chain, or travel provider, you can quickly get better deals. For more information on the value of points or miles, Check this chart.

Send someone who can gain a lot from the experience. Betabrand focuses on bringing in employees who haven't traveled much before. In April, the company dispatched its inventory manager, Delta Cokins (41), to Paris. It was her first time going out of the country. She came back inspired and wanted to use her own experience to develop her new product.

“I love really good printed fabrics, and Paris has some of the most amazing printed fabrics,” she says, adding:love lock” — a padlock the lovers attached to the guardrail.

The five-night trip not only gave her product ideas, but also inspired Cockins to travel more.

“When I got home, I started saving little by little,” she says. “I want to return.”

Some companies split expenses by department onto different cards to make it easier to create a profit and loss statement, while others, like Betabrand, choose to consolidate purchases onto one card. If you plan to follow suit, be prepared to spend some extra time on accounting.

“Now we have huge credit card bills every quarter that we have to split between different expense accounts,” Tagliani says. It takes him longer than usual, but he says it's worth the effort for him.

It's usually okay to use business credit card rewards for personal travel or business trips, since the rewards aren't usually taxed.

earn income However, rewards are another story. If your business is a corporation or limited liability company (LLC), don't use your business credit card for personal expenses like haircuts or clothes. This could be considered 'piercing the corporate veil', i.e. mixing business and personal funds. This can jeopardize your liability protection, and if your business is sued, your personal assets as well as your company's assets could be at risk. Before giving your employees access to your account, establish rules for what can and cannot be charged to your company card.

Note that money spent on business costs is tax deductible, but reward currency spent on business costs is not.

Making the most of your business credit card benefits can be a job in itself. But if you use those points and miles wisely, you can strengthen your business, foster a sense of community among your employees, and, in some cases, become really, really, ridiculously good at booking breathtaking vacations. I can.

Tagliani says, “My favorite part of the month is planning my trip.”

Image by Delta Cockins in Paris, courtesy of Delta Cockins.