E90Post
 


TireRack
 
BMW 3-Series (E90 E92) Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board > cash or no cash



Reply
 
Thread Tools Search this Thread
      07-21-2010, 10:11 AM   #1
08rookie
Private First Class
08rookie's Avatar
29
Rep
123
Posts

 
Drives: bmw
Join Date: Jul 2009
Location: phila, pa

iTrader: (0)

cash or no cash

would you rather be a business owner who gets paid entirely in cash or entirely in credit card/check/verifiable income?!

do the pros or cons outweigh one another in either situation?!
Appreciate 0
      07-21-2010, 10:14 AM   #2
OC 335i
General
OC 335i's Avatar
United_States
253
Rep
18,119
Posts

 
Drives: AW 335D E90
Join Date: Oct 2006
Location: Irvine/Aliso Viejo, CA

iTrader: (9)

Garage List
2007 335i  [0.00]
Send a message via AIM to OC 335i Send a message via MSN to OC 335i
Cash is King. Hello income taxes.
__________________

Current: 2010 Alpine White 335D LCI l 19" BBS LMs l KW V2 Coilovers l BMW Performance Grilles l MSport Front/Rear l Karbonwerke Trunk l F1 Pinnacle Tint 35% Former: E92 Space Grey 335i Latest pics
Appreciate 0
      07-21-2010, 10:15 AM   #3
BTM
Banned
United_States
172
Rep
10,314
Posts

 
Drives: A///MERICAN!!!
Join Date: Mar 2010
Location: A///MERICA!!!

iTrader: (11)

Garage List
Cash. I know of restaurants (not excessively shady or unestablished ones at that) that are converting to cash only.
Appreciate 0
      07-21-2010, 10:19 AM   #4
Freakazoid
Captain
Freakazoid's Avatar
37
Rep
967
Posts

 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Cash is always better...*always* there's no instance where credit is better than cash if you're a business owner.

However, for most business you have to accept credit, as it's become the major form of currency.

As BTM mentioned above, lots of businesses are attempting to convert to cash only. the amount of overhead associated with credit is mind boggling.
Appreciate 0
      07-21-2010, 10:24 AM   #5
08rookie
Private First Class
08rookie's Avatar
29
Rep
123
Posts

 
Drives: bmw
Join Date: Jul 2009
Location: phila, pa

iTrader: (0)

getting a mortgage is a little difficult though...for future purchasing power w2 need to be healthy....

Last edited by 08rookie; 07-21-2010 at 10:41 AM.
Appreciate 0
      07-21-2010, 10:34 AM   #6
BTM
Banned
United_States
172
Rep
10,314
Posts

 
Drives: A///MERICAN!!!
Join Date: Mar 2010
Location: A///MERICA!!!

iTrader: (11)

Garage List
Quote:
Originally Posted by 08rookie View Post
getting a mortgage is a little difficult though...for future purchasing power w2 need to be healthy....
Accepting cash doesn't necessarily mean you're fucking around with your reported income, while you can, there are other benefits as Freakazoid mentioned. I know, for the business I work for takes both cash and check. 99.9% of revenue is check, and most cash gets deposited unless it's for something weird like scrap metal for which the owners/partners just split. We don't accept CC because of the overhead necessary to do so and there isn't much demand for our customers to pay with credit.

Legally, you must report all income no matter what the form, so if you follow this to the letter your W2 will look the same no matter what forms of payment you accept.
Appreciate 0
      07-21-2010, 10:39 AM   #7
Freakazoid
Captain
Freakazoid's Avatar
37
Rep
967
Posts

 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by BTM View Post
Accepting cash doesn't necessarily mean you're fucking around with your reported income, while you can, there are other benefits as Freakazoid mentioned. I know, for the business I work for takes both cash and check. 99.9% of revenue is check, and most cash gets deposited unless it's for something weird like scrap metal for which the owners/partners just split. We don't accept CC because of the overhead necessary to do so and there isn't much demand for our customers to pay with credit.

Legally, you must report all income no matter what the form, so if you follow this to the letter your W2 will look the same no matter what forms of payment you accept.
exactly... I'm not even including 'fudging the numbers' as part of the benefit of cash.

Google the fees/costs associated with accepting American Express....and that's only one of several points.
Appreciate 0
      07-21-2010, 12:31 PM   #8
Kroy
Brigadier General
Kroy's Avatar
United_States
39
Rep
3,035
Posts

 
Drives: E90
Join Date: Jul 2009
Location: Los Angeles, CA

iTrader: (1)

Quote:
Originally Posted by Freakazoid View Post
exactly... I'm not even including 'fudging the numbers' as part of the benefit of cash.

Google the fees/costs associated with accepting American Express....and that's only one of several points.
+1 merchant fees are a bitch.
Appreciate 0
      07-21-2010, 01:30 PM   #9
coh4777
Lieutenant
10
Rep
530
Posts

 
Drives: 07 BMW 335i Coupe
Join Date: Jul 2009
Location: Vegas

iTrader: (0)

All else being equal cash is better. More "flexibility" in doing your IRS returns and credit card fees leak a lot of profitability out of a business. On the other hand, you could argue that accpeting other forms of payment could increase your transaction volume. The reality is that more and more people are using their credit cards for everyday purchases. I know I do because it is quicker to get through the register.
__________________
COH4777
2007 335i Coupe - Jet Black / Coral Red / Aluminum Trim / 6MT / Sport / Premium / CA / Navi / iPod + USB

Appreciate 0
      07-22-2010, 01:12 PM   #10
Freakazoid
Captain
Freakazoid's Avatar
37
Rep
967
Posts

 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by coh4777 View Post
All else being equal cash is better. More "flexibility" in doing your IRS returns and credit card fees leak a lot of profitability out of a business. On the other hand, you could argue that accpeting other forms of payment could increase your transaction volume. The reality is that more and more people are using their credit cards for everyday purchases. I know I do because it is quicker to get through the register.
other forms of payment drastically increases your transactions... unfortunately for business owners.

fortunately from a consumer point of view, it means a lot more protection, benefits etc.
Appreciate 0
      07-22-2010, 01:25 PM   #11
b0bab0i
Captain
9
Rep
974
Posts

 
Drives: 03 TiAG z4 3.0i w/ hardtop
Join Date: Feb 2008
Location: SoCal

iTrader: (0)

Quote:
Originally Posted by Freakazoid View Post
Cash is always better...*always* there's no instance where credit is better than cash if you're a business owner.

However, for most business you have to accept credit, as it's become the major form of currency.

As BTM mentioned above, lots of businesses are attempting to convert to cash only. the amount of overhead associated with credit is mind boggling.
What if you constantly get robbed at gunpoint?
Appreciate 0
      07-22-2010, 01:58 PM   #12
E92-Lighting
BimmerPost Supporting Vendor
E92-Lighting's Avatar
United_States
426
Rep
27,096
Posts


 
Drives: Next Generation LED Lighting
Join Date: May 2008
Location: Walnut

iTrader: (319)

Send a message via AIM to E92-Lighting Send a message via MSN to E92-Lighting Send a message via Yahoo to E92-Lighting Send a message via Skype™ to E92-Lighting
cash is king, what a famous saying
__________________
Appreciate 0
      07-22-2010, 02:19 PM   #13
Kroy
Brigadier General
Kroy's Avatar
United_States
39
Rep
3,035
Posts

 
Drives: E90
Join Date: Jul 2009
Location: Los Angeles, CA

iTrader: (1)

Quote:
Originally Posted by benmoooon View Post
What if you constantly get robbed at gunpoint?
If you're constantly being robbed, then you must be doing something wrong. Bump up security or carry a gun. Problem solved.
Appreciate 0
      07-22-2010, 02:20 PM   #14
dcgolfdr
Wheelsucker
dcgolfdr's Avatar
United_States
18
Rep
1,026
Posts

 
Drives: M3 and a truck
Join Date: Oct 2008
Location: Arlington, VA

iTrader: (11)

As a business owner you have to accept all forms of payment. No one carries cash, some people write checks but most use a credit or debit card. As other have mentioned merchant fees do cut into profits but it is a part of doing business. Also as a business owner there are many tax incentives in place from the govt. Work with a good accountant who understands the everchanging tax laws, take advantage of the laws in place and pay less tax the legal way. Didn't GE or a company similar not pay any tax this past year? It wasn't because they only took cash.
Appreciate 0
      07-22-2010, 02:22 PM   #15
Feyd
Major
Feyd's Avatar
59
Rep
1,241
Posts

 
Drives: a DEEZZULL
Join Date: Aug 2007
Location: Chicago, IL

iTrader: (2)

+1 on finding a good acct. A good CPA with decent tax planning skills is worth their weight in gold (sometimes much more).

A wise man once told me: "It is't how much you make... it's how much you get to keep."
Appreciate 0
      07-22-2010, 02:52 PM   #16
wj4
Major General
United_States
120
Rep
7,723
Posts

 
Drives: E90 manual 335i
Join Date: Nov 2006
Location: Burbank, CA

iTrader: (8)

Send a message via AIM to wj4
Quote:
Originally Posted by dcgolfdr View Post
As a business owner you have to accept all forms of payment. No one carries cash, some people write checks but most use a credit or debit card. As other have mentioned merchant fees do cut into profits but it is a part of doing business. Also as a business owner there are many tax incentives in place from the govt. Work with a good accountant who understands the everchanging tax laws, take advantage of the laws in place and pay less tax the legal way. Didn't GE or a company similar not pay any tax this past year? It wasn't because they only took cash.
There are a couple of restaurants I really like, but don't frequent as much because they only take cash. I rarely have any cash on me at all so when I'm hungry...I really don't want to stop by an ATM prior.

A con (albeit not a big one) of taking cash only is that it increases the possibility of getting fake bills. The places that only take cash mentioned earlier told me that they have been victims of such crime. Primary with fake $20 bills.
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 07:46 PM.




e90post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST