Payment Platforms

1. Square

   • Cost: Free account, ~2.6% + 10¢ per transaction

   • Ease of Use: Very Easy

   • Best For: In-person sales, markets, small retail

   • Key Features: Mobile app, card reader, invoicing, inventory tracking

   • Limitations: Card reader may need to be purchased ($10–$50)

   2. PayPal Zettle

   • Cost: Free account, ~2.29% + 9¢ per transaction

   • Ease of Use: Easy

   • Best For: In-person & online sales

   • Key Features: Card reader, PayPal integration, simple POS system

   • Limitations: Some customers avoid PayPal; reader ~$29

   3. Venmo for Business

   • Cost: Free to set up, 1.9% + 10¢ per transaction

   • Ease of Use: Very Easy

   • Best For: Pop-up shops, events, informal transactions

   • Key Features: QR code payments, familiar app, instant deposits (small fee)

   • Limitations: Less professional appearance for larger businesses

   4. Cash App Business

   • Cost: Free to set up, 2.75% per transaction

   • Ease of Use: Very Easy

   • Best For: Younger customer base, quick payments

   • Key Features: $Cashtag, QR code, instant transfers (small fee)

   • Limitations: Limited features for invoicing & record-keeping

   5. Stripe

   • Cost: Free account, 2.9% + 30¢ per transaction

   • Ease of Use: Moderate

   • Best For: Online stores, e-commerce

   • Key Features: Website integration, subscription billing, global payments

   • Limitations: Requires more setup & basic technical skills

   6. Clover Go

   • Cost: Free account, ~2.6% + 10¢ per transaction

   • Ease of Use: Easy

   • Best For: Small retail, food vendors

   • Key Features: Card reader, app, receipt printing (with add-ons)

   • Limitations: Hardware cost ($49+)

   7. Google Pay / Apple Pay

   • Cost: Free setup; processor fees apply via linked platform

   • Ease of Use: Very Easy

   • Best For: Mobile-friendly customers, contactless payments

   • Key Features: Fast, tap-to-pay, works with other POS systems

   • Limitations: Requires compatible hardware & customer adoption

When customers pay for your product or service, there are now a number of ways they can pay (see STEP 37). In other steps, we have also stressed the importance of carefully separately your personal finances from the business finances. A real complication, though, is when people pay you with cash. Further, this is also the case when you pay for things for the business with cash. Cash payments can be more difficult to track, and so can affect the accuracy of your total revenue and total expenses for the month. In addition, when customers pay cash, the potential for theft and fraud can be greater.

Receiving Cash from Customers

Let’s first consider people paying you for goods and services. If someone pays you with a credit card, or electronic payment, then there is an electronic record of the payment. Similarly, if you have a POS system (point-of-sale) like a Square or Clover, you will have a record. If you make sales transactions using a cash register, most of these will also keep a record of your transactions. At a minimum, the cash register will produce a receipt for each transaction, and you can keep a copy. But what if you are simply using a cash box? There is no record of the transaction. This means you may be underestimating your sales revenue. So, you need to create some sort of system to track cash payments daily. This is also important because, when you accept cash payments, and have employees or a family member taking the payment for the customer, it can be tempting for them to pocket some of the money (as they know there is no record of the transaction).

To begin, you will want to designate a spot for all cash payments, whether that be a cash box, a bag with a zipper, a locked cash register box, or a safe of some sort. Regardless of where you store your cash, make sure all cash goes in one spot, and that it is only accessible by you or someone you designate.

Who has access to your cash? Stay on top of this at all times. Make sure it is clear to your employees who has access to the cash and who is responsible for counting and tracking. Not every employee needs to have access. Perhaps you choose one employee per shift to track cash payments, record payments, and count at the end of each shift.

To track these payments, all you will need is a simple log or ledger. This can be created on Excel, or even on Microsoft Word using the table feature. If you aren’t interested in using technology, this process can be as simple as having a notebook to record the purchase, the invoice number if applicable, the amount of cash, the date, and who received the cash. Make sure this information is legible and organized in a fashion that can be easily understood. Click here to see a simple example.

Now that you have a log, the process of collecting and recording cash should look something like the following:

1. Count cash at the beginning of the day/beginning of each shift and record the dollar amount.

2. Record the transaction immediately after receiving money. This will keep you on top of your payments and ensure you do not miss any.

3. Place money in designated spot along with invoice or receipt if you have them.

4. At the end of the day, or at the end of each shift, count the money and compare to the log as well as receipts and invoices. Record the dollar amount for you, or the next employee handling the cash.

5. You should regularly deposit cash from sales into your business bank account. Do not take any cash for your personal needs before making the deposit. Instead, if you are taking money out of the business for personal needs, show that as a separate transaction, and write it down in your records.

You want to be vigilant in overseeing this process. It is the best way to keep track of how much money your business is making and what products and services are being sold. If you plan to allow responsible employees to track cash payments, make sure they are trained and understand the importance of accuracy and pay attention to detail when it comes to this process.

Paying Cash for Expenses

Now let’s consider situations when you pay for things for the business, but pay with cash. Again, if you do not make sure you always get a receipt for these purchases, and then write these amounts down at the end of each week, your expenses will be understated, and so your profits on paper will be higher than they really are (and so your tax bill will higher). So have a simple system for getting receipts and storing for everything, and recording these expenses.