Smarter spending starts with a business credit card.

Small business owners should be focused on minimizing risk wherever possible, especially when it comes to money. In the past, petty cash was the go-to solution for covering small, everyday purchases — but times have changed. Today, the risks associated with using cash have only increased, and alternatives like business credit cards offer far better protection, oversight and even rewards.

While theft and fraud are the most obvious concerns, relying on cash introduces a range of other vulnerabilities that can hurt your business’s finances and operations.

Lost or stolen cash.

The most immediate and visible risk of petty cash is that it can simply go missing. What happens if an employee misplaces an envelope of petty cash? What if it’s stolen from an office or vehicle? Unlike digital transactions, there’s no easy way to trace or recover lost cash. Once it’s gone, it’s gone.

Switching to business credit cards adds a layer of security. If a card is lost or stolen, it can be canceled quickly. Most credit card providers offer fraud protection, meaning you’re often not responsible for unauthorized purchases if they’re reported in time. In many cases, your business could avoid most, if not all, financial losses.

Hard-to-track, error-prone expenses.

Cash and paper receipts go hand-in-hand, and with that comes the risk of disorganized records, lost receipts, manual errors and more time spent reconciling expenses. Tracking cash transactions often means relying on handwritten logs, which makes it hard to get a full picture of your spending.

Business credit cards simplify all of that. Each transaction creates a digital record, making it easy to sort, search and analyze your spending. Whether you’re reviewing monthly trends or preparing for tax season, having electronic documentation saves time and reduces the chances of error. Most cards also integrate with accounting platforms or expense management tools, making bookkeeping easier and more accurate, which is especially important as your business grows.

Uncontrolled spending.

Cash doesn’t come with controls. There are no built-in limits, no user restrictions or audit trails. That creates opportunities for overspending or misuse. However, business credit cards offer smart controls that let you manage how your funds are used.

• Set spending limits by cardholder
• Restrict spending categories to just travel, fuel or office supplies, for example
• Monitor purchases by employee
• Freeze or cancel cards instantly, if needed

These safeguards not only reduce your fraud risk, they also encourage accountability and help you enforce your spending policies across the team.

Missing out on rewards.

Every penny matters when you’re running a small business. If you’re using cash, you’re likely missing out on valuable credit card rewards such as cash back, points or discounts on purchases you’re already making. With the right business credit card, you could be earning rewards for office supplies, gas, travel or many other everyday purchases. Some cards also offer intro bonuses, promotional rates or special financing that can free up more working capital. Over time, those savings can add up significantly and can even be reinvested back into your business.

Diminished cash flow forecasting.

Strong cash flow is the backbone of a healthy business, but the usage of petty cash makes forecasting harder. Cash transactions are harder to track and often don't show up in a timely fashion in your accounting system, which makes it tough to get an accurate read on your cash position.

Credit card spending, by contrast, is easier to plan and track. You can review up-to-date expenses, align payment due dates with your revenue cycle and even delay outflows without disrupting your operations. This level of control helps you manage liquidity more strategically which can come in handy during busy or slower seasons.

What business credit card is right for you?

The risks of petty cash are clear, but the solution doesn’t have to be complicated. Commerce Bank offers a variety of small business credit cards and we’ll help you choose the one that best fits your goals and purchasing patterns. Whether you want to maximize rewards, streamline expense tracking or gain more visibility into employee spending, we’ll walk you through your options. No matter which card you choose, you’ll have the confidence of knowing you’ve taken a step forward in building a stronger, more secure business.