Income tax time is a time we all dread. However, taxes have to be paid whether we like it or not. Taxes are our obligation to the country and there is no way of escaping this expense. Small businesses are especially affected by the high taxes they have to pay. First of all, they may not have hands-on accounting staff on their rolls. Second, they may not be in the position to provide adequate cash to meet the high tax amounts. Being a small business in the modern world is often a scary proposition. However, it need not always be that way.
These days, large numbers of smaller businesses are choosing to pay their taxes through their business credit cards. If you thought that credit cards were only good for clothes and groceries and buying products online, you have another think coming. Credit cards are slowly taking over as the favored mode of payment for everything -- from mortgage and house rent to electricity, necessities, and taxes. Small businesses are especially pleased with this development. Even if they do not have enough cash on hand to fill in their taxes, they can depend on their credit cards to finance that bill. Later when the money is recovered from their various debtors, the credit card bill can be paid off.
One of the scariest things about defaulting on your taxes is that you might end up having to pay quite a large fine. However, paying by card deals with this problem effectively. The business still has to pay the credit card company, but at least it will not get the tag of a tax defaulter. It is true that the tax authorities charge a relatively low interest on defaulting payments. However, the costs add up. If you want to avoid paying exorbitant amounts of interest on your credit card bills, you should at least try to find some really cheap credit cards. In fact, while looking out for cards, I have on occasion found credit cards that charge no interest for up to fifteen months. If that is not a steal, what is?
The power of plastic has been on the rise of late. Of late, even governments have become aware of its important role. Credit cards are clearly on their way to becoming the currency of the future. We must all get set for this. Maybe it is time for us to recognize the power of a credit card, and use cards to pay some more of our regular bills.
