Disclaimer: This is not tax advice. I’m not a CPA. Always check with a qualified tax professional before making financial decisions. What follows is based on real-world experience in the ATM business, plus what works for many independent ATM deployers (IADs) just getting started.
Why Bookkeeping Matters in the ATM Business
When you’re new to the ATM business, it’s easy to think:
- “I’ll track deposits in my bank account.”
- “I’ll remember what I spent on paper and modems.”
- “Taxes? I’ll deal with them when April rolls around.”
That approach works for about three months… until:
- You forget which deposits are surcharge revenue vs. vault cash cycling back.
- You scramble to find receipts for ATM supplies.
- You miss deductions that could have saved you thousands.
Good bookkeeping isn’t busywork. It’s the foundation of:
- Clear financial reporting
- Stress-free tax preparation
- Understanding which ATMs make money and which need to be relocated
And here’s the truth: your ATM business may be small at first, but the IRS doesn’t care. If you earn $1 or $1 million, they expect clean, accurate reporting.
How the ATM Business Works with Bookkeeping
Before diving into software, let’s clear up what you actually need to track:
- Surcharge Income: This is your revenue. Every transaction generates a fee, and your processor pays it out to you.
- Vault Cash: This refers to your money circulating in and out of the machine. It’s not income, but you need to track it so you know how much is tied up in ATMs.
- Expenses: Wireless modems, receipt paper, ATM parts, travel costs, insurance, marketing, etc.
- ATM Assets: The machines themselves. You’ll depreciate these for tax purposes (typically 5 years under MACRS).
If you try to track all this with just a bank statement, good luck. You’ll constantly mix up deposits, and when tax time comes, you’ll wish you had started earlier.
Why Zoho Books Free Plan Is a Great Starting Point
Here’s the deal:
- Zoho Books is 100% free if your annual revenue is under $50,000.
- When you’re starting, $50k revenue is usually half a dozen ATMs doing around $700–$800 each per month.
- It could take 6 months to a year to hit that, unless you’re an absolute hustler placing machines nonstop.
That means you can run your books professionally, at no cost, during your startup phase. By the time you outgrow the free plan, your business should be making enough to cover paid software.
Pros and Cons of Zoho Books
Pros:
- Free under $50k revenue
- Cloud-based (log in anywhere)
- Easy to use—much friendlier than spreadsheets
- Automates recurring entries (like surcharge payouts)
- Can connect to bank accounts for automatic imports
- Generates basic tax-ready reports
Cons:
- Not as widely recognized as QuickBooks (some CPAs prefer QuickBooks files)
- Limited integrations compared to larger tools
- If you outgrow the free plan, pricing jumps (though still cheaper than QuickBooks)
- Payroll features are limited in the U.S.
For most new IADs, the pros heavily outweigh the cons.
Zoho Books vs QuickBooks vs Spreadsheets
Here’s the side-by-side:
| Feature | Zoho Books Free | QuickBooks Online | Spreadsheets |
| Cost | Free under $50k | $30–$90/month | Free (time cost) |
| Ease of Use | Beginner-friendly | Steeper learning curve | Depends on your skills |
| ATM Specific Setup | Easy to customize categories | Doable, more complex | Manual formulas |
| Reports | Good basics (P&L, balance sheet) | Excellent, advanced | Only what you build |
| Scalability | Upgrade when you grow | Scales easily | Doesn’t scale well |
| CPA Friendly | Some CPAs less familiar | Industry standard | CPAs hate it |
| Automation | Bank feeds, recurring entries | Best-in-class automation | Zero |
Verdict:
- Spreadsheets are fine if you like pain, broken formulas, and staying up until 2 AM in April.
- QuickBooks is powerful, but it can be pricey for beginners.
- Zoho Books free plan is the sweet spot for new IADs.
Setting Up Zoho Books
Here’s how to get started. I’m not going to show actual screenshots of my setup and blur things, so show you with a simulated screenshot.
Step 1: Create Your Account
| Welcome to Zoho Books |
| [Get Started for Free] Track income, expenses, invoices and more—all in one place. |
- Go to Zoho Books and sign up for the free plan.
- Use your business email (not personal Gmail) to keep things professional.
Step 2: Add Your Bank Account
| Banking |
| [Link Bank Account] No accounts linked yet |
- Click Link Bank Account.
- Connect the account where your processor deposits surcharge or where you receive any other revenue (this is NOT your vault account).
- This will let you automatically import transactions.
Step 3: Set Up Categories
ATM Revenue
| Record Income |
| Amount: $1,000 Category: [ +Add New Category ] Notes: Processor payouts or Surcharge Income |
- Add new category: ATM Surcharge Revenue
- Use this every time your processor deposits your surcharge share.
Vault Cash
| Transfer Funds |
| From: Business Bank Account To: Vault Cash Clearing Amount: $5,000 |
- Create a category called Vault Cash Clearing.
- This helps you track how much of your money is sitting inside ATMs.
- Set aside a fixed amount that you will use for vault cash. You will always balance back to this amount, as vault cash funds are either in the ATM, in the vault cash account, or in transit after being withdrawn. This will be set up in a vault cash account at your bank (other than your income account).
Step 4: Generate Reports
| Reports |
| Profit & Loss Balance Sheet Cash Flow Statement Expense by Category |
- Profit & Loss shows surcharge revenue minus expenses.
- The Balance Sheet shows ATM machines as assets, and vault cash as clearing.
- Expense by Category shows where your money goes.
Pro tip: Run these monthly. Don’t wait until tax season.
Basic Tax Strategies for ATM IADs (Not Tax Advice)
Here are the basics you’ll want to remember (and run by a CPA):
- Separate accounts: Never mix personal and business.
- Track mileage: Every trip to load or service an ATM can be deducted.
- Depreciate machines: ATMs are 5-year assets. Depreciation saves you money.
- Keep receipts: For supplies, wireless, repairs, and insurance.
- Know your 1099-Ks: Your processor may issue them, but confirm income matches your books.
- Quarterly taxes: If you’re profitable, set aside money and pay quarterly to avoid penalties.
Will you Outgrow Zoho Books?
The question is really whether you’ll want to upgrade or change when:
- Your revenue is consistently over $50k (the Zoho Free version is limited to $50K)
- You add employees or need payroll
- You want more integrations with other apps
- Your CPA insists on QuickBooks or other software for easier collaboration if you hire one
Options:
- Upgrade Zoho to a paid plan (still cheaper than QuickBooks)
- Switch to QuickBooks or Xero and import data
- Export from Zoho before hitting limits
Final Thoughts
If you’re just starting your ATM business:
- Don’t waste time with messy spreadsheets.
- Don’t pay for QuickBooks before you need it.
- Use Zoho Books Free Plan to track revenue, vault cash, and expenses.
You’ll learn good bookkeeping habits without spending a dime. And when you reach $50k revenue, congratulations — you’ll have other opportunities, such as deciding how to scale, rather than whether you can afford accounting software.