After taking over investments and the world of technology, BTC widened their resourcefulness into the business arena. Numerous commercial establishments are realizing the immense benefits that come with using such cryptocurrencies.
Apart from being a user-friendly medium, Bitcoin save you huge profits, which are consumed by transaction costs. Furthermore, the cryptocurrency adds new customers to your business since many owners out there are looking for businesses that accept BTC to uplift them through collaborations.
Many large companies started accepting BTC payments, such as Starbucks and AT&T. Now is the time for small and medium-sized businesses to do the same. With the fast-growing digital landscape, leveraging cryptocurrency can help accelerate your revenues. So, why not adopt BTC in your business this year?
In addition, when you put out there that you deal with BTC, you will attract positive media attention leading to the growth of your business.
Tips when using BTC for business expenses
Due to their unique nature, virtual currencies carry inherent benefits in transactions over fiat currencies. Though the digital currency world is constantly changing with other tokens untested as mediums of exchange for more than a decade, business owners should be cautious and weigh benefits over risks when it comes to using them for business expenses, especially when you buy Bitcoin with a credit card.
With that said, BTC are meant to offer unique advantages compared to other payments. However, the user needs to understand how to use them for business expenses in order to further their business. Here are the top tips that business owners should incorporate when using virtual currency for their business expenses.
1. Choose the correct payment processor
In some cases, businesses will have complicated processes running their day-to-day practices and may also need to process numerous daily transactions. For such businesses, it is best to work closely with an industry reviewed payment processor to make the whole procedure considerably easier. Though they may charge you a nominal fee for their services and resources, these charges are way below other fiat e-wallets.
Such payment processors have incorporated features designed for specific businesses like shopping cart plug-ins, transferring invoices, and facilitating point of scale transactions for restaurants. And also, in case you are worried about storing BTC. In instances like that, the payment processors may help with instant conversion to fiat currencies, so the supplier who is unwilling to accept the virtual currency is reimbursed to their liking.
If you desire to trade and grow your BTC earnings from your business, you can do so by using a bitcoin trading platform, such as Netcoins.ca or any other regulated and publicly owned platforms. You can fund your BTC account with a cryptocurrency deposit, bank wire transfer, or online bill payments.
2) Create a personal BTC address
This should be the very first thing you do before you start using BTC for your business. Make your personal address where your customers deposit their BTC. You can either create one via your wallet through an app or program. It works like reports and detailed history of your transactions and where customers put their BTC.
You can empty this box when you end your business day and store your day proceeds in different locations like your smartphone, PC and encrypted offline drives. The tip here is adhering to strict security measures to secure your wallet.
After setting up, now it’s time to spread the word. This is important as it will greatly benefit your business when you make it known that your business accepts BTC. If you have a website for your business, make sure you create an eye-catching banner that clearly states you accept BTC. Make this option available in the options for other transaction methods like online banking so the customer is aware they can use this virtual currency to make payments.
You can advertise your new payment method by creating a blog about it and sharing it through social media. You should also highlight the convenience of paying via BTC. On the other hand, for your brick-and-mortar store, you can install signages that indicates you accept BTC payments. By doing so, many cryptocurrency users will be enticed to avail your products and services.
4. Track your taxes
Bitcoin is now classified as an asset that makes clear tax implications. The Internal Revenue Service (IRS) imposes mandatory taxpayer reporting of all bitcoin transactions regardless of the value. Taxpayers in the United States must report BTC transactions for tax purposes. If you have retail transactions using BTC, like the sale of goods, capital gains tax should be applied.
Now that your business is accepting BTC, include this in your tax deductions. Though the blockchain system keeps your business transactions as public records, ensure you maintain your personal records for purposes of filing taxes. Using BTC in your business for expenses does not complicate your fillings, so why not consider it.
Today, BTC are not just for investments. While you can buy cryptocurrencies and sell them to make profits, you can also use them in businesses as a payment option. Like you buy bitcoin and sell them, businesses can incorporate them and use them for business expenses.