You may be considering running a cash-only business. From what you’ve heard, it sounds convenient. Accepting cash-only eliminates a lot of hassle, such as fraud. Furthermore, you eliminate the risk of chargebacks. Also, retail security is very important when you running a cash-only business.

But, there are risks involved as well. One such risk is that if you have a cash-only business, you have to worry about your safety. 

When running a cash-only business, you must keep certain variables in mind. Here are a few to mull over as you decide whether to have a cash-only business. 

1. You Must Report Payroll Taxes 

It’s not illegal to pay employees with cash. But you mustn’t forget to do payroll and report payroll taxes. The IRS states that you must pay your taxes even if employees get paid in cash. 

If you don’t report payroll, there are consequences. Employees don’t receive their Social Security income. Plus, it’s illegal and can result in big problems for your company. 

IRS Audits 

To expand upon reporting payroll taxes, reporting income is imperative. Why? The last thing any business wants to happen is for its business to fall under IRS audit scrutiny. 

The IRS looks for businesses that fall below the industry averages. So, if there’s underreported income, it may very well come back to haunt a company. That’s why documenting every cash transaction is vital. 

If there’s proof of the cash transaction, then you’ll have something to give to the IRS. Without evidence, a business can land itself in hot water. 

2. You Don’t Have to Worry About Fraud 

With having a cash-only business, fraud isn’t an issue. You don’t have to deal with checks that bounce or bogus credit or debit cards. You also won’t have to worry about getting your money back in situations like these. 

Although, you should be on the lookout for counterfeit money. There are ways to tell if money is legitimate. For example, 100 dollar bills always have a blue vertical line on the right side. Hold it up to the light, and you can see it. 


When accepting credit card payments, at one point or another, a business experiences fraud. Unfortunately, fraud is a pain to deal with because it can result in chargebacks. When a credit card company tells you that you have to refund money to the customer, you lose out on that money. 

Chargebacks are sometimes fraudulent. In this case, it’s frustrating when there’s nothing you can do about it. By accepting cash-only, you won’t struggle with the stress of figuring out fraud and chargebacks. 

Not having to worry about fraud is a relief when you’re running a business. You’re already having to worry about keeping everything running smoothly. So, naturally, eliminating fraud is a significant benefit. 

3. Security Is Still an Issue

Even though you won’t have fraud or chargebacks, there’s still the issue of security. Running a cash-only business puts you at risk for robberies. Word may get around that you have a lot of cash. Even though you may frequently go to the bank, security should still be a concern. 

Security Guard 

Depending on your business, you may want to have a security guard. Having a security guard stationed outside your building is one way to keep burglars away. If anyone ever considers robbing you, a security guard can make them think otherwise. 

Transporting Cash 

When transporting cash, you must also be careful. It’s wise to transport some money during the day so that it’s harder for someone to rob you. 

Furthermore, if you plan to transport a lot of cash, you should have it in a secure location. Consider placing it in a locked safe until leaving. Then, when transporting it, you can then have it in a locked briefcase. Having a secure place for the cash will keep you and the money safe. 


There’s a lot to consider when deciding to run a cash-only business. It may be ideal for you, but another factor to consider is whether it’s convenient for your customers. Your customers should know that you only accept cash. Otherwise, you may lose out. If possible, have an ATM near your business. If there’s an option for them to get the cash, the more likely they’ll stick around. 

Running a cash-only business may be the way to go for you. Weigh your options, and you’ll come up with the right course of action for you and your business.