Cash business

[Inky29]

I've got a couple of buddies that own convinience stores. I've always heard folks say stuff like, "those stores make a profit but who really knows how much they make, it's a cash business." Are they just pocketing cash and not reporting it? Couldn't a simple audit show what was sold and how much was deposited? I'm sure it's simple I just wasn't sure how it worked.

 

[Pokes15]

Depends on how your registers are set up and what records you keep.

 

[tcpoke]

And they aren't nearly as cash oriented as what they once were.

 

[Inky29]

Thanks, it seemed to me there are fewer and fewer folks using cash. I guess you could always skim off fountain drinks since there's no way to really track how much is being taken each time someone buys a fountain drink. Even then the amount would end up being small. Oh well I was just curious.

 

[Pokes15]

Thanks, it seemed to me there are fewer and fewer folks using cash. I guess you could always skim off fountain drinks since there's no way to really track how much is being taken each time someone buys a fountain drink. Even then the amount would end up being small. Oh well I was just curious.

Yes, very few cash customers, which sucks because using debit and credit cards causes the store to incur a small fee every time its used.

 

[ctrawick]

@Inky29 - Think Tastee Freeze.

 

[Been Jammin]

Thanks, it seemed to me there are fewer and fewer folks using cash. I guess you could always skim off fountain drinks since there's no way to really track how much is being taken each time someone buys a fountain drink. Even then the amount would end up being small. Oh well I was just curious.

There are a lot of ways to get away with not paying taxes on money earned if you are the owner of a small business. Of course, there is risk involved. If you get audited, you can end up owing significant money because you were not doing things the right way. But, if you get away with it for 15 years before you are audited, then you are going to come out way ahead.

 

[osutater]

This isn't really on topic, but have any of you been to a business that doesn't deal in pennies?

I am opening a small business and my partner and I recently went to a similar business that didn't take pennies because it costs the government more to make them than they are worth. He had a sign explaining this. He was a pretty quirky guy, but he says people like it. He rounds up and down on cash transactions. I am wondering if that has any effect on his P&L. Would that bother you? My partner and I are kicking around the idea of doing the same thing.

 

[Been Jammin]

This isn't really on topic, but have any of you been to a business that doesn't deal in pennies?

I am opening a small business and my partner and I recently went to a similar business that didn't take pennies because it costs the government more to make them than they are worth. He had a sign explaining this. He was a pretty quirky guy, but he says people like it. He rounds up and down on cash transactions. I am wondering if that has any effect on his P&L. Would that bother you? My partner and I are kinda kicking the idea round of doing the same thing.

I like that a lot.