{"id":15524,"date":"2022-06-28T18:00:03","date_gmt":"2022-06-28T18:00:03","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/the-word-on-payment-methods-for-atlanta-businesses\/"},"modified":"2022-06-28T18:00:03","modified_gmt":"2022-06-28T18:00:03","slug":"the-word-on-payment-methods-for-atlanta-businesses","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2022\/06\/the-word-on-payment-methods-for-atlanta-businesses\/","title":{"rendered":"The Word on Payment Methods for Atlanta Businesses"},"content":{"rendered":"
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\u2026payment methods!<\/p>\n

Try to come up with one thing that\u2019s more important to your Atlanta business than taking in revenue smoothly. Yeah, I couldn\u2019t, either.<\/i><\/p>\n

And making sure that revenue is coming in becomes almost an obsession when you\u2019re feeling the squeeze of inflation<\/span><\/a> on your profit margins.<\/p>\n

Though talk of recession is hanging in the air, it doesn\u2019t mean you have to passively wait for its effects. You can make a plan to survive it<\/strong> and even give your profit margins a boost.<\/p>\n

Want help planning for the future of your business? That\u2019s why my team at Mark Perlberg CPA PLLC is here. Schedule a time with us to get the ball rolling:
calendly.com\/mark-perlberg-cpa<\/a><\/strong> <\/p>\n

When it comes to getting paid, opening every channel<\/i> seems like the best plan. But make sure you know what each channel involves before you do \u2013 like fees, rules, taxes.<\/p>\n

Let\u2019s take a look\u2026 <\/p>\n

The Word on Payment Methods for Atlanta Businesses<\/strong><\/span>
\u201cDo something for somebody every day for which you do not get paid.\u201d – Albert Schweitzer<\/i><\/span><\/p>\n

There are more ways than ever for your company to get paid with each choice having good points and bad for convenience, speed, and security. Let\u2019s look at the options and see if you\u2019re using the best payment methods for you.<\/span><\/p>\n

Is cash king?<\/strong><\/span><\/p>\n

Maybe, maybe not. You get your payment on the spot, there are no sneaky fees (as with many other payment methods), and with diligent recordkeeping, you won\u2019t get into tax trouble. If you sell relatively inexpensive items or services from a brick-and-mortar store, cash might be best. <\/span><\/p>\n

Yet you might be surprised how many people don\u2019t carry cash anymore, and your customers aren\u2019t likely to make a major purchase with cash. And a lot of cash on your premises, frankly, can make you a target. <\/strong><\/span><\/p>\n

Did we mention diligent recordkeeping to avoid tax trouble? We mean really<\/i> diligent. You have to make a<\/span> <\/span>special report<\/span><\/a> to the IRS if any transaction involves more than 10 grand in cash. (Reach out to us with any questions about this.)  <\/strong><\/span><\/p>\n

Give yourself credit<\/strong><\/span><\/p>\n

Credit cards (which consumers seem to prefer more than debit cards) can make a smooth transaction on both sides of the checkout. Taking card payments can expand your pool of customers and, via deposits right to your bank, streamline your revenue without you keeping a lot of cash on hand. They\u2019ve also been shown to increase impulse purchases. <\/i><\/span><\/p>\n

This convenience comes at a price for you in the form of multiple fees (such as per-transaction and monthly) or special equipment such as card readers (which can cost up to a grand or so). Note that fees for debit card transactions are capped but credit card companies set the fees for their cards\u2019 transactions. <\/span><\/p>\n

And with a cash purchase, the buyer has to show up and plead their case to get their money back. Chargebacks for returns from unhappy credit card customers can ding your account without warning. Some banks also hold merchants responsible for credit card fraud, a potentially expensive liability especially if you can\u2019t process more-secure chip cards. <\/span><\/p>\n

The quaint paper check is about as far as you can get from microchip technology. Yet some older customers prefer writing checks, and some businesses still take them \u2013 all you need is a business bank account and a smart acceptance policy. Best to take only checks from well-known or in-state banks or to use a third party to verify the quality of the check. Electronic processing of checks can come with a service fee. <\/i><\/span><\/p>\n

Customers can stop payment on a check. And of course, checks can bounce. Not only does this sometimes nick you with a fee from your own bank but getting your money can then become an especially long process. And it could go all the way to small claims court or end with you hiring a collection agency. <\/strong><\/span><\/p>\n

Other payment methods <\/strong><\/span><\/p>\n

Mobile:<\/i> Probably as many people own smartphones as hold credit cards \u2013 maybe more \u2013 and payments are usually fast and convenient, but you may have to worry about security, frequent app updates, and compatibility issues, especially if customers don\u2019t have iPhones or Androids.<\/span><\/p>\n

Electronic payments:<\/i> Again, it\u2019s fast and easy, especially if you have international customers. These are also pretty much indispensable if you sell online; they\u2019ll calculate the sales tax for you. Fees tend to be higher here than with other methods.<\/span><\/p>\n

Autopay: <\/i>Customers often find this the best way to pay for subscription services, and you get your money regularly without having to send more than maybe an annual reminder to re-up. That can also produce problems for you, such as overdraft charges when your customer can\u2019t make the payment and after-the-fact (sometimes angry) cancellations and demands for refunds. <\/i><\/span><\/p>\n

Email invoicing: <\/i>Good if you provide a service. Your bill goes out fast, which can produce a faster payment. It also makes your bookkeeping and accounting easier because it\u2019s electronic, and you won\u2019t have to track down paperwork. It doesn\u2019t always work as well for retail, though, and there\u2019s always the chance your bill will wind up overlooked in a customer\u2019s spam folder.  <\/strong><\/span><\/p>\n

Some vendors<\/strong><\/span><\/p>\n

Here are a few household names that offer options, just to get you started. (We can recommend others that might be better for you.) <\/span><\/p>\n

Paypal<\/i><\/span><\/a>:<\/i> Mobile, online and in-person payment. An online transaction fee of about 3.5%, about 2% for in-person payments using a QR code. Various fees for other services such as credit and debit card payments. <\/span><\/p>\n

Venmo<\/i><\/span><\/a>: <\/i>No set-up fee, a seller transaction fee of about 2%, no monthly fees. \u201cProfile\u201d needed. Other fees for such features as electronic withdrawals. <\/span><\/p>\n

Quickbooks Payment<\/i><\/span><\/a>: <\/i>No monthly or set-up fees. Rates from 1% for ACH transactions to 2.4% to 3.4%, depending on how the transaction is processed. <\/strong> <\/span><\/p>\n

 <\/p>\n

In this day, setting up a plethora of payment methods is probably a good call. And you especially want to consider advancing your options as the world evolves and new methods hit the scene. <\/span><\/p>\n

Even with this list of pros and cons, we understand if you still need some support to figure out what\u2019s right for your Atlanta business. We\u2019re here to give that support:<\/span>
calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n

And, as always, we\u2019re on your team when it comes to taxes. <\/p>\n

In your corner,<\/p>\n

Mark Perlberg<\/strong>
<\/strong>
Mark Perlberg CPA PLLC<\/strong><\/p>\n

 <\/p>\n<\/p>\n<\/div>\n