Cash-only businesses accept only cash from their customers. They do not accept any other payment forms like debit/credit cards and money orders. Some examples of cash-only businesses include small restaurants, coffee shops, and street vendors.
While this type of business provides you instant access to cash, it also brings up many risks. You would never know if someone has paid you counterfeit money. Or whether an employee has miscounted the money after a busy day. So one of the things to invest in would be the best bill counter for your specific needs.
That said, there are several ways to overcome these challenges and secure your business. Let’s discuss them in detail below!
When accepting only cash, you won’t have electronic receipts and statements available. There would be no record to tell you about revenues and expenses, which can make cash flow management difficult. So, it’s best to make recordkeeping a daily practice.
Recordkeeping is an organizational practice in which you can collect and record important data. In the case of a cash-only business, you will be noting the date, amount, and item/service sold. You can do this manually in a register or digitally in software.
Invest in a High-Quality Bill Counter
A modern bill counter is a money-counting machine that can handle both banknote checking and counting. There are two slots in it; one to insert the cash and the other to receive counted money. Some models can also detect different currencies.
Since it provides an accurate count quickly, a bill counter is a worthy investment for cash-only businesses. You can calculate the daily or monthly income easily. You can also use it to identify any theft or fraud.
Train Your Employees Properly
It’s highly important for your employees to know how to handle cash properly. Even if they are morally sound, they can make mistakes that can impact your business negatively.
For example, being distracted while collecting money can give ill-intentioned people a chance to make wrong/fake payments. Your employee can also cause loss by giving the wrong amount of change back. So, you should provide frequent workshops on money handling.
Learn More About IRS Policies
International Revenue Service, or IRS, is a governmental service responsible for tax collection and revenues. It tends to monitor cash-only businesses carefully and often conducts its surveys. They also have specific policies like Form 8300.
It is mandatory to fill this form when accepting large cash amounts over $10,000. You have to provide customer details, transaction descriptions, and business data within 15-days of money-receiving.
Make Sure Your Customers Know You’re a Cash-Only Business!
Last, but the most important rule for cash-only businesses is to make sure everyone knows you accept only cash. It’s because people normally prefer card and mobile wallet payments. Not knowing this important detail can make your customers irritated.
They may even refuse to purchase your product/service. To avoid this, put large notice boards and banners on your shop. If you own a website, mention you’re a cash-only business on the very top so that your customers don’t have to face inconvenience.