A cash-only business is a straightforward way to carry out your business transactions. Whether you have a retail store, a bar, or a food stand, there are many different places that decide to go cash-only. However, it’s important that you know how to run your cash-only business correctly.
There are plenty of mistakes that you can make, and it’s possible to find yourself in legal trouble if you’re not careful. Take a look at some of the best tips for successfully running your cash-only business.
Make it Easy For Your Clients
Not everyone loves a cash-only business. After all, statistics show that over 70% of people only carry a debit card at all times. Therefore, if you’re going to ask your customers to pay you strictly with cash, then make it as easy as possible. If you don’t have an ATM machine on site, then make sure that you know where the closest one is.
Above all, always let your customers know upfront that you’re cash-only. Signs should be visible, and there should be no question about whether you accept credit cards or not.
Be on Top of Your Accounting
When you’re cash-only, it’s up to you to make sure that you’re on top of every single transaction. Everything must be recorded and kept track of meticulously. All of that income must be reported to the IRS, so it’s essential that you have a reliable way of recording all of your cash transactions. Every transaction should have a receipt, and should also be recorded on a ledger.
Unlike credit card payments which are easily tracked, cash transactions require a little extra heavy lifting. It’s easy to forget to record payments here and there, which can lead you to problems down the road. So make sure that you’re on top of your accounting if you plan on only accepting cash.
Consider Paying Your Employees By Check
Even though it’s not necessarily illegal to pay your employees with cash, it’s a lot safer to pay them using checks. That way no one can dispute whether they received the payment or not. There is a recorded transaction with the bank that shows that they cashed their check in the amount of what you owed them.
Chances are that you’re going to get complaints from time to time about your lack of versatile payment methods. If you’re absolutely set on being a cash-only business, then it’s essential that you anticipate these complaints, and take the proper measures to handle the complaints.
By warning your customers upfront, and providing easy solutions like an ATM machine, you’ll have much fewer problems and issues come up.