Small business owners are accustomed to credit cards. Most businesses have to accept them in order to stay competitive. However, small businesses may also want to consider having a small business credit card of their own for a few reasons.

Here’s how a small business credit card might help your business:

1. Improved records – Credit card companies detail a customer’s spending each month, making it possible for small business owners to keep better records by putting their business expenses on a single card.

2. Better tax efficiency – Tax time is no holiday for business owners. By opening a small business credit card in the business’ name, a small business owner can keep business and personal expenses separate. Also, business credit card transactions can be automatically filtered into popular tax products like Quicken, TurboTax, and FreshBooks.

3. Smoothed cash flows – Business credit cards allow small business owners to smooth out their cash flow by financing necessary expenditures for a short period of time. Business owners who use a credit card have more latitude to make purchases when their business needs them, not just when they have the cash to fund the purchase immediately.

When you sign up for a business credit card, make sure that the card will be in the name of the business. By borrowing for the business, not for yourself, you build valuable credit history that will establish your brand among major lending networks. Also, a business credit card separates the ownership of the debt between you and your business, protecting your finances in the case of default.

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