Half of Small Businesses Not Prepared to Add Bitcoin Payments

Posted in: Archive
October 30, 2014 10:33 PM UTC

A new report by research and advisory company Software Advice indicates that small-to-medium size businesses are not prepared to add bitcoin payments to their business model. Nevertheless, a high number of respondents understand how to calculate taxes on bitcoin payments.

Also Read: Acromobile And Bitnet Enable Mobile Merchants to Easily Accept Bitcoin Payments

Half of Small Businesses Not Prepared to Add Bitcoin Payments

Recently, bitcoin payment processors such as Coinbase, BitPay, and GoCoin have partnered with companies like PayPal and Shopify to afford hundreds of thousands of businesses the opportunity to accept bitcoin payments (GoCoin also facilitates litecoin and Dogecoin transactions).

However, Software Advice recently released a report indicating small-to-medium size businesses are not prepared to make forays into digital currency payments–even though it could mean increased sales. When asked how prepared they were to give their customers the option to make digital currency payments, 50% of survey respondents stated they were either “not at all prepared,” while another 18% responded their businesses were “minimally prepared.”

Much of respondents’ anxiety about accepting bitcoin payments appears to stem from confusion about how to integrate digital currency into financial and accounting software, as well as how to interact with other bitcoin-ready companies. Despite the fact that accounting software programs are gradually adding digital currency integration–most notably Intuit’s Quickbooks–,58% of respondents did not think their accounting software can process bitcoin payments.

A high number of small businesses believe they understand how to calculate taxes on bitcoin payments.

Businesses Prepared for Bitcoin Tax Implications

However, the Software Advice report did contain some encouraging information for the cryptocurrency community. Thirty-four percent of surveyed businesses replied they were “very prepared” or “ahead of the curve” in regard to reporting bitcoin payments on their companies’ tax reports. Software Advice posits this number may be so high since the United States Internal Revenue Service (IRS) has been relatively proactive about issuing digital currency tax guidelines.

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Images from Shutterstock.

Last modified: June 10, 2020 12:14 PM UTC

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Josiah Wilmoth @Y3llowb1ackbird

Josiah is the U.S. Editor at CCN.com, where he focuses on financial markets. His work has also been featured on Yahoo Finance and Investing.com. He lives in rural Virginia. Connect with him on LinkedIn or Muck Rack. Email him directly at josiah.wilmoth(at)ccn.com.