BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board
 
Evolve Automotive
Post Reply
 
Thread Tools Search this Thread
      07-21-2010, 10:11 AM   #1
08rookie
Private First Class
 
08rookie's Avatar
 
Drives: bmw
Join Date: Jul 2009
Location: phila, pa

Posts: 123
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?!
08rookie is offline  
0
Reply With Quote
      07-21-2010, 10:14 AM   #2
OC 335i
General
 
OC 335i's Avatar
 
Drives: AW 335D E90
Join Date: Oct 2006
Location: Irvine/Aliso Viejo, CA

Posts: 18,119
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
OC 335i is offline   United_States
0
Reply With Quote
      07-21-2010, 10:15 AM   #3
BTM
Banned
 
Drives: A///MERICAN!!!
Join Date: Mar 2010
Location: A///MERICA!!!

Posts: 10,314
iTrader: (11)

Garage List
Cash. I know of restaurants (not excessively shady or unestablished ones at that) that are converting to cash only.
BTM is offline   United_States
0
Reply With Quote
      07-21-2010, 10:19 AM   #4
Freakazoid
Captain
 
Freakazoid's Avatar
 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

Posts: 967
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.
Freakazoid is offline  
0
Reply With Quote
      07-21-2010, 10:24 AM   #5
08rookie
Private First Class
 
08rookie's Avatar
 
Drives: bmw
Join Date: Jul 2009
Location: phila, pa

Posts: 123
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.
08rookie is offline  
0
Reply With Quote
      07-21-2010, 10:34 AM   #6
BTM
Banned
 
Drives: A///MERICAN!!!
Join Date: Mar 2010
Location: A///MERICA!!!

Posts: 10,314
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.
BTM is offline   United_States
0
Reply With Quote
      07-21-2010, 10:39 AM   #7
Freakazoid
Captain
 
Freakazoid's Avatar
 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

Posts: 967
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.
Freakazoid is offline  
0
Reply With Quote
      07-21-2010, 12:31 PM   #8
Kroy
Brigadier General
 
Kroy's Avatar
 
Drives: E90
Join Date: Jul 2009
Location: Los Angeles, CA

Posts: 3,035
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.
Kroy is offline   United_States
0
Reply With Quote
      07-21-2010, 01:30 PM   #9
coh4777
Lieutenant
 
Drives: 07 BMW 335i Coupe
Join Date: Jul 2009
Location: Vegas

Posts: 530
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

coh4777 is offline  
0
Reply With Quote
      07-22-2010, 01:12 PM   #10
Freakazoid
Captain
 
Freakazoid's Avatar
 
Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

Posts: 967
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.
Freakazoid is offline  
0
Reply With Quote
      07-22-2010, 01:25 PM   #11
b0bab0i
Captain
 
Drives: 03 TiAG z4 3.0i w/ hardtop
Join Date: Feb 2008
Location: SoCal

Posts: 968
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?
b0bab0i is offline  
0
Reply With Quote
      07-22-2010, 01:58 PM   #12
E92-Lighting
BimmerPost Supporting Vendor

 
E92-Lighting's Avatar
 
Drives: Next Generation LED Lighting
Join Date: May 2008
Location: Walnut

Posts: 26,674
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
__________________
E92-Lighting is offline   United_States
0
Reply With Quote
      07-22-2010, 02:19 PM   #13
Kroy
Brigadier General
 
Kroy's Avatar
 
Drives: E90
Join Date: Jul 2009
Location: Los Angeles, CA

Posts: 3,035
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.
Kroy is offline   United_States
0
Reply With Quote
      07-22-2010, 02:20 PM   #14
dcgolfdr
Wheelsucker
 
dcgolfdr's Avatar
 
Drives: M3 and a truck
Join Date: Oct 2008
Location: Arlington, VA

Posts: 1,016
iTrader: (10)

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.
dcgolfdr is offline   United_States
0
Reply With Quote
      07-22-2010, 02:22 PM   #15
Feyd
Major
 
Feyd's Avatar
 
Drives: a DEEZZULL
Join Date: Aug 2007
Location: Chicago, IL

Posts: 1,241
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."
Feyd is offline  
0
Reply With Quote
      07-22-2010, 02:52 PM   #16
wj4
Major General
 
Drives: E90 manual 335i
Join Date: Nov 2006
Location: Burbank, CA

Posts: 7,723
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.
wj4 is offline   United_States
0
Reply With Quote
Post 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 08:00 AM.




m3post
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