For small businesses using payment apps to receive and make payments, the IRS is implementing major changes to payment app reporting requirements this year. Under the old system, platforms like PayPal, Venmo, and Cash App only reported earnings exceeding $20,000 with 200+ transactions. However, under the new rules, if you earned more than $5,000 last year, you’ll receive a 1099-K form—and by 2025, the threshold drops even further to just $2,500.

While this isn’t a new tax, it is a wake-up call—and an opportunity to re-evaluate your business systems. The way you accept payments is more than just transactional—it’s foundational. And if your goal is to grow and eventually exit your business, the systems you build today determine the value and scalability of your company tomorrow.

Why It’s Time to Graduate from Consumer Apps

Those early tools like Cash App or Venmo might’ve helped you get started, but if you’re serious about building a company—not just a hustle—you need to graduate to professional business systems. Consumer payment platforms lack the infrastructure and credibility that businesses need as they grow in complexity and revenue.

A Merchant Services Account is one of the first logical upgrades. Service providers, online retailers, and mobile businesses with relatively simple operations may not need more than this. But the benefits are real: lower transaction fees, direct bank deposits, official receipts, and streamlined reporting all feed into more professional operations and cleaner books.

If you’re regularly processing more than $5,000 a month, still using payment apps, or preparing for a serious growth push, it’s time to transition. The merchant account is your first step toward real business systems that create order and open the door to long-term scalability.

For Brick and Mortar: POS is a Power Move

Businesses with inventory, teams, or customer volume—like retail stores, restaurants, and service-based shops—need more. A Point of Sale (POS) system isn’t just a cash register; it’s a centralized, tech-enabled business hub. It tracks employee performance, manages inventory, runs loyalty programs, and gives you actionable insights with advanced analytics.

Yes, there’s an initial investment. But it pays for itself through reduced human error, operational efficiency, and the ability to make informed decisions based on real-time data. And as your business scales, the ability to replicate and systematize success becomes your most valuable asset.

Systems Equal Freedom

Whether we’re talking payment processing or customer engagement, your business systems define how smoothly your company runs without you. And that’s the goal, right? Not to work in your business forever, but to build something that works without your constant oversight.

This is where most small and midsize business owners get stuck. They wear every hat, manage every fire, and wonder why growth feels like a burden rather than a blessing. The truth? You haven’t installed the right systems.

Systems separate a job from a business. They allow you to shift from being the operator to becoming the architect. And when those systems are well designed—from financial tracking to team communication—they free you up to lead, innovate, and plan your exit on your terms.

Build Now or Regret Later

It doesn’t matter if you’re processing $5,000 or $5,000,000 a month—every successful company is built on scalable business systems. They are the invisible engine that powers growth, reduces chaos, and adds real value to your company when it’s time to sell.

So as new tax regulations roll out and the stakes get higher, use this moment to level up. Evaluate your payment structure, tighten up your reporting, and implement systems that serve your vision, not just your survival.

Because freedom, value, and a successful exit don’t happen by accident. They’re built—one system at a time. Discover where your business stands and what’s holding you back with the Built to Exit Assessment. In just a few minutes, you’ll get clarity on your exit readiness—and the exact next steps to scale smarter, profit more, and exit on your terms.

Contact Jason Sisneros