"Make It Out to Cash"

So I know I am opening a can of worms and troll feed here, but just a survey. How many folks here deal in cash on insurance jobs? Are homeowners usually open to the idea?

Not. Our contract clearly states we do not accept cash.

May I ask why? Liability reasons?

Checks are always made out to ‘Albert’s Roofing’. There is no reason for a business/company check to be made out to ‘cash’.
How to you write your checks to employee’s? Bradco? Or Lowes? To ‘Cash’?

First, we are completely above board with all income, to the penny. Second, we have lots of Sales Reps. If we start allowing cash payments, only a matter of time before one of the Reps decide to pocket the cash.

Your asking directly about cash on insurance jobs? Is this your way of covering deductibles? Or traces there of?

i guess im asking “Why” would you do cash on insurance jobs?

No. We do not waive or cover deductibles. Specifically, I have a seller who gets me Home Depot store cards for about 10-15% off. Has been legitimate so far, much to my surprise. The problem is he only takes cash for them. I also have a fellow roofer who sells me his surplus materials at a discount - cash only. I know the IRS hates cash deductions for materials, so for tracking purposes (again being completely honest, no hiding income or shady dealings) it would just be safer for me on some jobs.

never ever would that would happen its against the law in my parts nor could i take the job if asked i would take cash to lower price. even my sister and my father paid by check. you get caught audit tax problem irs hello.

Found what I was looking for- it is perfectly acceptable on jobs under $10,000. If the aggregate cash payments on a job total $10,000 or greater, you have to file an IRS form 8300 to report the transaction.

I heard rumors about a guy who helped start businesses up. Helped a friend of mine get started.

My friend is a framer.

Anyways, the deal was he accepted a “silent partnership” for $25,000, maybe it was $30,000 and no interest- just a lifelong partnership. This silent partner asked only one thing- when someone asks how the framer wanted to be paid- he’d have to ask cash or check- checks were to pay the bills, payroll, insurance, ect and the cash was to be split 50/50 with the silent partner. Some call it Mafia I am sure, he calls it helping a man out.

To keep a handle on it- the silent partner would use his secretary to pay all the payroll, every Friday. This office BTW had many tradesman trucks there throughout Thursday afternoon and Friday morning- not mine, but many trucks I recognized.

As roofers, I am pretty sure we couldn’t get away with this “system” as registering warranties, buying materials, ect we would be easily found out.

Cash is too hard to account for, and creates too much temptation for the people handling it. I have had people ask for and then steal cash down payments.

Unless you plan on cheating, which you probably are, there is no good reason to solicit cash payments. And to be honest when I hire contractors who ask for cash it immediately makes me question my hiring decision and I get extra anal about scrutinizing their work.

Wow accepting cash is against the law?!

While I do not accept cash payments I find it sickening that cash has been outlawed. That’s just government out of control. Too much government. How can you outlaw the official form of currency in the country? Just doesn’t make any sense!

It is unprofessional in my opinion to accept cash. It also makes it easier to keep accurate records if you don’t.

Red flag if a contractor is asking for cash.

-not reporting income(tax fraud)
-contractor has lower income to keep his GL premiums down(ins fraud)
-no paper trail if litigation occurs.

Any contractor even thinking about cash payments should be avoided, IMVHO

As far as I’m aware there is nothing illegal about a business accepting cash. At convenient stores, fast food chains, barber shops, ( I could go on for a long time ) cash is used as the “Primary” payment method. What would be illegal however, is not reporting that income to the IRS.

Wow, old thread! Agreed with LuckyChucky. Self employed individuals fall under the largest amount of scrutiny, and honestly? I have no shame believing that the business I conduct in the United States of America should remain between myself, my clients, and the Lord. As for the tax man? Render unto Ceasar all that belongs to Caesar, but certainly not a penny more. Not everybody who enjoys the anonymousness of cash is a mafia thug or a terrorist, contrary to the growing views on the matter. Not to get off on a patriotic rant by any means, but hey. As the philosopher Chevy Chase once said, “This isn’t Soviet Russia, Danny. Is this Soviet Russia?”

All true but in a contractor building confidence is generally harder AND more important. Asking for cash payments can work against that. It is easier to trust a barber because your hair grows back free of charge. :slight_smile: