Cash is a normal part of doing business. Whether you’re a contractor, restaurant owner, retailer, or service provider, there’s nothing wrong with accepting cash from your customers. The problem isn’t the payment method, it’s what happens after you receive it. One of the most common questions we hear from business owners is: “If a customer pays me in cash, do I have to report it?” The short answer is yes. All business income must be reported, regardless of whether you’re paid by cash, check, credit card, Venmo, ACH transfer, or another payment method. Unfortunately, there are still plenty of misconceptions about cash transactions and “under-the-table” payments. Understanding the difference can help you avoid costly mistakes while building a healthier business. What Does “Under the Table” Mean? An under-the-table transaction occurs when business income or wages are intentionally left off the books. This might include accepting cash without recording the sale, paying employees in cash without reporting payroll, or keeping certain transactions out of your accounting records. It’s important to remember that accepting cash is legal. Failing to report that income is where problems begin. Common Misconceptions About Cash Payments “Cash income doesn’t have to be reported.” This is one of
What Business Expenses Are Fully Deductible vs. Partially Deductible? If you’re a business owner, you’ve probably asked yourself this at least once: “Can I write this off?” As a tax professional, I hear it all the time. While it may seem like a simple yes or no answer, the truth is that not all business expenses are treated equally when it comes to deductions. Some expenses are fully deductible, meaning you can write off 100% of the cost. Others are only partially deductible due to IRS limitations. And then there are a few that might surprise you with how little (or how much) you can actually claim. Fully Deductible Expenses: The Everyday Essentials Many of the expenses you incur while running your business are completely deductible. These are your bread-and-butter costs—necessary, ordinary expenses that keep your operations going. Some examples include the following: Office supplies, internet bills, software subscriptions, and utility costs tied to your workspace Professional services like bookkeeping, legal help, or tax preparation fees Paying employees along with your share of payroll taxes and benefits Renting an office or leasing equipment exclusively for your business Advertising through social media, local events, or your website Even business education—like attending