Companies across the globe are discovering that developing and implementing a bitcoin strategy brings profits – you can ask Overstock and TigerDirect.
First, Bitcoin is easy to use; they provide faster transactions with lower pay compared to credit cards. The announcement that “you can pay with Bitcoin here” is also bringing media attention. Bitcoin users will also support companies that use Bitcoin.
So how can a family restaurant or small online store start accepting Bitcoin payments and joining the herd?
Step 1: Create your Bitcoin address
This address will be the address your customers will send money to, and the process is quite similar to email: they enter your address (or scan QR code with their phone), enter the required amount, and click “send.”
At the end of the day, just like in the safe, you might have to take the money and hide it in a safer place. It may be good to get used to keeping small amounts on your computer, phone or server in general. You may want to keep the majority of your capital in a safer environment.
You can easily find guides on how to create a bitcoin wallet on the internet. And don’t forget to secure your wallet.
Step 2: Use the Payment Handler
If your sales process is a bit complicated to make a Bitcoin payment directly to your wallet, or if you’re trading a lot during the business period, you might consider using a Payment Handler. BitPay and Coinbase are the two best-known examples.
Payment handlers charge a percentage or monthly fee for the service they offer, while fees are fairly low compared to credit card companies and PayPal.
Moreover, payment handlers offer some applications of their technology: you can send invoices by email, use POS (which can be useful if you run a restaurant or cafe), or add a shopping cart plug-in to your online store.
Finally, if you don’t want to keep Bitcoin in your hand (let’s say your supplier or landlord wants cash) such handlers can instantly convert your money into legal money..
Step 3: Announce You Are Accepting Bitcoin
It helps if you tell your customers that you accept Bitcoin. If you have an online shop window, you can add the “Bitcoin acceptable” button next to PayPal, MasterCard, Visa and other buttons.
In the same way, you can paste a similar sticker into your physical store’s storefront or safe.
Step 4: Accounting and taxes
Ask your accountant how you should keep a record of your transactions with cryptocurrencies. Accountancy companies specializing in Bitcoin and cryptocurrencies have also begun to appear on the market. Bitcountant is one of them.
Tax Ninja, based in San Francisco, is another company that helps with Bitcoin-related tax issues. “It’s pretty simple for American Bitcoin companies to meet the tax obligations set out in the IRS’s manual” Matthew Whatley, founder of Tax Ninja, told Businessweek in March.
