Nowadays, people get paid in all kinds of ways. While cash
or a check used to be the standard, business owners now get paid through both
credit card and debit card payments, as well as through mobile payments, such
as those made through a service like PayPal.
Sometimes, new business owners are a bit wary about
accepting mobile payments. However, as long as you understand how these
payments work and how they affect your taxation situation, they are perfectly
fine and incredibly convenient to use.
Why Use Mobile
Payments
So, you may be wondering, why should you bother accepting
mobile payments?
To start with, mobile payments are super convenient for
doing non-local business. Someone can send you funds via PayPal or Venmo no
matter where they live. You then simply ship out the item, allowing you to
expand your business all over the world.
Another nice thing about mobile payments is that the mobile
payment service will typically keep accurate records of who paid what and when.
These records are easily accessible and do all of the “paperwork” for you.
Mobile payments are also convenient and easy for everyone
involved. No one has to count cash or schedule a meetup. Payments can be made
anytime and from just about any device.
Mobile payments are so convenient that it’s often easy to
forget about them. However, any money you earn via mobile payments needs to be
reported on your taxes.
You can go through the records kept by the service when it
comes time to file taxes. Or, in some cases, you can link the mobile payment
account to your accounting software. At any rate, it’s very easy to get the
information you need to properly and honestly file your taxes and to include
income made via mobile payments.
As you can see, mobile payments are a wonderful thing and
can make your life easier in many ways. If you do run into any questions about
how to make proper use of mobile payments or how they affect your taxes, just
remember that your accountant is your best resource.