We have a Point of Sales terminal to handle all credit card transactions. The credit card processor company sends us 1099K form that we use for tax purposes. This works fine for our small beauty salon.
However, how are businesses supposed to handle cash transactions? Currently we write them down into a notebook with a pen to know how much we earned to file taxes correctly.
- First of all is this a legal way to track cash transaction or are we required by law to have cash register (California)?
- Any other alternatives you could suggest to track cash transactions? I imagined that something where we would get another 1099K form for cash transactions would make accounting at our side easier when filing taxes (e.g. cash register connected to Internet).