No matter what type of business you are running, it is quite possible that you can accept Bitcoin online. The first step involved is to create a Bitcoin wallet. That is how you will be able to receive Bitcoin in the first place, as well as, how your customers will end up paying you for the products and services that they want to buy from you. 3 hours ago · Besides literally accepting Bitcoin as payment means for goods or services, businesses can benefit from the digital currency in other ways that can also help support and grow the business. Here are a few of the key advantages worth revisiting. Mar 12, · If you are uncertain about the suitability of accepting Bitcoin for your business, set up an account as yourself with a reputable site that handles Bitcoin exchanges. Among the well-known exchanges are Huobi, Bitfinex, BTC-E, BitStamp, and Kraken. Next, .
Business accepting bitcoinHow to accept Bitcoin, for small businesses - Bitcoin Wiki
This article sheds light on moving your online enterprise toward joining the Bitcoin Revolution and accepting this cryptocurrency. One of the primary reasons that businesses begin assimilating Bitcoin into their payment means is that it reduces transaction charges. For example, Bitcoin can decrease the fee for credit card processes to less than one percent.
Another factor is that this cryptocurrency does not have charge backs. Instead, it has irreversible transactions. As such, it automatically shuts out the returns or charge backs that occur with bank dealings and credit cards. In short, there are no disputes about accepted Bitcoin payments.
Also, Bitcoin enhances worldwide transfers. This comes at a time when small e-commerce retailers, as well as other enterprises, are refraining from putting their services and products in the international market due to costly fees in transnational transactions. However, Bitcoin lessens the high cost of global operations through facilitating faster, cheaper, and easier cross-border payments. Bitcoin further offers some protection from identity theft that banking services and credit cards fail to provide.
Lastly, having finances available at once is crucial to the existence of most small enterprises. Compared to credit card payments, Bitcoin payments make funds available to your business in a shorter time. If you have a standard business and wish to begin accepting electronic currencies like Bitcoin or other cryptocurrencies, you have to think about the legal side of this decision. Therefore, before starting the process, gather all relevant data regarding Bitcoin legalities. Additionally, learn about the lawfulness of Bitcoin by state.
To this end, it will be important to get assistance from an accountant or attorney and involve them in your decision. To begin accepting Bitcoin in your small enterprise, look for the most viable option for the kind of enterprise you own. At the moment, there are many methods with which businesses can begin accepting Bitcoin. The most straightforward options will simplify your accounting process. For example, payment processors such as Multibit will let you begin accepting Bitcoin right away.
Alternatively, open an account at Blockchain. If you are uncertain about the suitability of accepting Bitcoin for your business, set up an account as yourself with a reputable site that handles Bitcoin exchanges. Next, download wallet software such as MultiBit. This is among the most popular of the desktop Bitcoin wallets.
Others include Armory and Electrum. All three desktop Bitcoin wallets have a similar process. For instance, MultiBit is a Bitcoin wallet that is simple to use and enhances sending or receiving payments in the form of this virtual currency.
The main benefit of MultiBit is that it can operate without downloading the whole Bitcoin blockchain. Use a brand new address for each invoice whenever possible, and use it only once. This benefits the customer as it removes any ambiguity as to which customer is making which payment and for which invoice. You should also consider the possible risk that fraudsters could send counterfeit invoices to your customers, and entice them to make a payment to a Bitcoin address they control, instead of you.
While that isn't likely in general - it depends on how well a fraudster could find out who your customers are in the first place - it would certainly be an unpleasant situation if it ever happened. One way you could control that is, whenever possible, never let people try to type Bitcoin addresses off payment stubs - instead, force people to get the full Bitcoin address from your website via secure SSL. But, still print most of the address on the payment stub perhaps with four or five characters starred out , so that the customer's need for a paper trail can be satisfied, so they can prove they paid if there is ever a dispute.
Merchants can also use the IP address geolocation to understand the close proximity of users. There is automated solution such as FraudLabs Pro that automates the screening of Bitcoin transactions to determine risk level. When a business accepts bitcoins for payment, there generally is the need to convert them to the currencies used for paying suppliers, employees and shareholders. Some merchants set prices based on the current market rate at the time the price quote is presented to the customer.
Bitcoin Prices lists the exchange rate for many currencies on multiple exchanges. When prices are determined using an automated process, the current market rate can be based on either a current price or on a weighted average basis. When bitcoin funds for purchases are received, some merchants instantly exchange those proceeds into the preferred currency used.
Hedging for each transaction can nearly entirely eliminate exchange rate risk that the business is exposed to when accepting bitcoins for payment.
A sales contract might be used to ensure that specific terms are met to lessen the chances of a misunderstanding. For instance, the party sending payment is responsible for paying any transaction fee that might be necessary. A contract might specify that a transaction fee must be paid and what amount, so as to prevent the situation where the transaction is considered a low priority transaction and thus isn't confirmed quickly.
Tax compliance is a topic of concern for small businesses. We aren't accountants or lawyers, and can't give legal or accounting advice. But in many respects, Bitcoin transactions work very much like cash.
Just like Bitcoin, cash is anonymous and doesn't leave a paper trail, yet is widely used in commerce every day. Ask yourself how you would handle a cash transaction. Do you accept cash transactions? Do you normally pay taxes on cash transactions? The answer for Bitcoin should probably be the same. As for how to decide what a Bitcoin transaction is worth: the IRS, as far as we know, has never issued a guide mentioning how to value Bitcoin transactions.
But they have rules and guidelines on how to value transactions made in foreign currency or "cash equivalents". We imagine the accounting would be similar.
With Bitcoins, there's likely to be some difference between the value of BTC when you received them as payment, versus when you go to exchange them for another currency like USD, should you decide to do so. This scenario, likewise, would be no different if you accepted foreign currency or gold as payment. Under some scenarios, it might make sense to book the dollar value of BTC income as it is received, and then to book any difference incurred when it is exchanged for fiat currency.
Under others, it might make sense to book the whole thing at the time of exchange. Perhaps you might talk to your accountant. You don't need to get into a discussion with your accountant about block chains and private keys or the philosophy behind a decentralized currency. By comparing the fundamentals of Bitcoins to accounting concepts already well understood by the public, you can probably get all the answers you need.
What would you ask your accountant if you decided that you wanted to accept Berkshire Bucks or 1-ounce gold coins as payment? Jump to: navigation , search.
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