You're paying the same taxes whether customers pay with cash or CC, aren't you? What am I missing here?
I've been to a few restaurants that are cash only. Is that an option for you?
I've been to a few restaurants that are cash only. Is that an option for you?
If my revenue is say, $1m, that's roughly $23k that a CC or payment processor gets right off the bat, so I'm paying taxes on the $1mm but the cut takes a nice hit off my end profits. That $23k would be infinitely more valuable if I could reinvest it in my workforce, my product, my team, or myself.
I'm not a restaurant but I am a food service provider. I wish I could go cash-only but that would restrict who I do business with, which at the stage I'm at, is not really an option.
If you are talking U.S. income tax, that is incorrect. You are not paying taxes on $1 million, rather you are paying taxes on $977K since the payment processing fees are tax-deductible.