According to Overstock and TigerDirect, it is quite beneficial to use bitcoins in business strategies, as there are a lot of benefits involves. Such as lower transaction costs, ease of use, and a reduced need for middlemen. Additionally, when a decent sized organization starts using bitcoins it usually gets a lot of media attention. Did you all hear about the british company that added the word Blockchain to its name and its value soared?
Below we discuss the steps through which a small businesses can use Bitcoins in their businesses.
Creating a bitcoin address and using it as a payment method .
The first step is divided into two sections:
- Creating a Bitcoin Address
The first thing is to own a bitcoin wallet. This will act as the address to which your customers will send bitcoins.
The process is simple since the customers will only need to input your address, enter the amount they want to send and thats it.
Each day during the bitcoin business closure, you can then transfer the proceeds of the day to your bank account. However, it’s good to leave some amount on your computer or phone wallet for day to day bitcoin operation.
With bitcoin transactions, business fundamentals won’t change, you will operate normally as you do with other currencies.
Setting up a Bitcoin wallet is simple, there are online tutorials on how to create one.
After creating a wallet, implement the recommended security features.
- The use of a payment processor.
You might find it hard to use a direct cash payment into the Bitcoin wallet or if your transactions are too many such that controlling all of them from your wallet is hard then use the payment processor. Some of the best processors is Coinbase and Bitpay.
You might find it difficult to organize all of your bitcoin transactions neatly. Apparently Coinbase and Bitpay offer transaction processing services to keep everything organize carefully.
Payment processors can also add tech support, such as the ability to send email invoices, set up a POS, or even adding a shopping cart plug to your online shopping page if you offer such services.
Lastly, these payment processors can automatically convert your Bitcoins into fiats if that’s what you prefer.
Make sure you let people know that you accept bitcoins
It’s very important that your customers understand that your business is BTC friendly and you are open to alternative payment methods.
If you use bitcoins, advertise it with hashtags or regular tags that indicate “Bitcoin Accepted Here.”
Also, make it very clear on your website and add a guide for your customers so that they know how to pay with bitcoins.
Make sure the Bitcoin acceptance icon is next to the other modes of payment you accept like PayPal, credit and debit, as well as other means.
Taxes and Accounting
Ensure that you have a clear method with your accountant on how to account for Bitcoins and how its records will be kept.
This is not only restricted to Bitcoins but any other type of cryptocurrency that you accept for payment.
Some organizations have introduced Bitcountant, and organizations are generally starting to merge all cryptocurrency transactions.
A great example of a firm that handles bitcoin-related tax issues is the Tax Ninja fund in San Francisco.
The guidelines about taxes related to Bitcoins are very straightforward in the United States because they generally abide by the IRS laws, according to Matthew Whatley, the founder of Tax Ninja.