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Restaurant Business: Cash, Check Or Charge?
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How Best to Collect the Tons of Money You Will Earn with Your New Restaurant ? Cash, Check or Charge?
Perhaps the most exciting part when establishing a restaurant, or any business for that matter, is collecting the money. What is business for but to earn? For some the only concern is the money. Money these days is no longer limited to a single monetary form but different modes as well, which may be called the three big C?s ? cash, check, and card or charge. Which is the best mode to earn? This could be a puzzling question for the aspiring entrepreneur. Hopefully, the following will help clear things up.
Cash: Instant Gratification
Perhaps the most common form of money is cash. Nothing wets the appetite for business like crisp new bills. It is the monetary form you are most familiar with and thus, the one most connected to profits and earnings. Cash is good, because it is money in its clearest form, tangible and physical, it is finance incarnate. It is immediately disposable and can be used anywhere.
However, more people try to avoid carrying cash nowadays. First, cash can be bulky; carrying a lot entails one to bring wads of paper. Second, since cash is physical money, it is very risky and can be lost. Once it is gone, there's practically now way of retrieving it. It can easily be stolen and can even lure danger by attracting robbers and other bad elements. It can be dangerous to customers as they can easily be held up. It can be dangerous to restaurateurs as well because it can it can be easily be embezzled. While cash can give instant gratification, great security is needed to ensure its preservation. Get up to $200,000 to "move" your existing business. US Government Grants for USA Citizens. Claim your FREE $79 Gov Grant book!
Check: Symbolic Cash
Checks can be very useful for people who have money in the bank. With checks, you can still spend money without having to carry thick bundles of paper around. Checks can be quite secure as the money it represents can only be claimed by the intended recipient, unless of course if the check is written paid to cash.
There are many advantages in using checks, but there are also drawbacks that could inconvenience the recipient. Checks need to be cashed, which takes time and extra effort for the collector. The money collected can't be spent immediately. Checks expire after a few months, usually six. Perhaps the greatest danger that checks may entail are insufficient funds. The customer paying with a check may not have enough money in their account. It takes more time and effort to gain the money being earned.
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