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