Which Form of Payment is Ideal for Your Small Business?

When first launching a small business, one key aspect of longterm success is financial stability and having a system in place for managing cash flow. Many small businesses now accept various forms of payment for products and services offered. As a small business owner, you should consider multiple payment options in order to gain more consumers and increase profits. We have provided a brief overview of each form of payment for you to consider. When choosing a professional accountant, pick one with specific experience in small business accounting.

Credit Card Payments

Credit cards are the most popular form of payment in today’s society. They are convenient and easy to use for potential customers. One aspect to keep in mind though are the various fees associated with accepting them. Credit card companies typically enforce some sort of processing fees, along with certain rules and restrictions. As a business owner, it would be best to accept multiple credit card brands.

Debit Card Payments

Debit cards are considered to be the most reliable source of payment because the funds from the customer are directly transferred to the business’ bank account. This will eliminate the concern of encountering a denied credit card, a check bouncing or any other payment issues. Debit card payments are the best way to ensure that the owner is paid immediately.

Checks

Over the years, the popularity of checks has decreased tremendously. However, if you do decide to accept them, it’s important to ensure that all checks are properly processed and that your company is compensated by the customer’s bank account.

Cash Payments

Cash payments are the most basic method of purchasing an item or service. If you decide that your business should accept cash, you should make sure that you have enough bills and change in the register as well as making sure that your register is secure. Cash can be forgotten when it comes to documenting transactions, so it is important that you keep a record of this along with your receipts.

Online Payments

Online payments are the new trend for purchasing items and services. In fact, those who choose to pay online are part of a major category of consumers. By accepting this form of payment, your business is likely to experience an increase in overall sales. If you choose to accept this form of payment, keep in mind that your business will be inclined to abide by certain rules, pay processing fees or payment limits and follow the Internet sales tax requirements. One other aspect to consider is making sure you invest in keeping your online store secure and impenetrable.

At Verdeja, De Armas & Trujillo, LLC, our team of professionals in our accounting and bookkeeping department is dedicated to providing personalized and financial guidance. We provide accurate and comprehensive financial statements as well as in-depth business analyses. Contact us today for a small business accounting consultation.