We have discussed how important it is for those of us in healthcare to be vigilant when it comes to our funds and I can’t encourage you enough to get a Fidelity Policy for key employees who have access to your money. Having an accountant look at your books regularly and having another accountant, one who doesn’t know your regular accountant, do some spot checking once a year is a very good idea. When it comes to credit cards, we have always been keenly aware that it’s a bad idea to commingle funds between personal and business expenses. We knew that we should have cards for business and personal use, but I wanted to share with you a random issue related to fidelity policies and credit cards that I was unaware of and recently told by my insurance agent. Long story short, it’s very important that your business credit card is actually a business credit card and the business card for the business it’s being used in. What I mean is it’s a bad idea to use a personal credit card for business purchases on a regular basis. If you do this then your fidelity policy will not cover theft on the personal card even if said card was used exclusively for business and was your de facto business credit card. If you find yourself stolen from and violate this policy, it can cost you big bucks!
Why would anyone use a personal card for their business or allow employees to have access to their card? Simple, it has to do with credit limits and functionality and getting things paid for on a day to day basis.
Get an actual business credit card in the name of the business. It’s a hassle but it will save you big headaches in the event you’re stolen from!