If you get paid in cash you should read this
Getting paid in cash is simple, however you need to protect yourself and your customer. This short article explains why and how to do that.
I uploaded a video about 10 ways to get paid. One of those methods was cash.
Cash is sometimes the easiest way to get paid but it can also be the most complicated, especially from an audit trail point of view.
When you’re dealing in cash you need to make sure there is an absolute record of how much has been received and how much someone has paid you.
If you deal in cash, I would always recommend you carry a duplicate receipt book with you. When someone pays you cash, fill in the receipt book with the date, customer name, what they’re paying you for, how much they’re paying you, the fact it’s been received. The customer signs it to confirm they’ve paid you that amount of money, you sign it to say you’ve received the money. Give them the top copy and keep the second copy in the book for you.
Why is this important? Because there’s so many steps to handling cash. If you say you haven’t received cash, how can they prove they’ve paid you.
If you say they’ve paid you but they don’t think they have, how can you prove whether they’ve paid your or not. Did they pay the right amount of cash? What was the cash for? Which invoice? Which service?
All of these things need an audit trail. Every cash transaction should have two signatures; one of the receiver and one of the giver. Without both of these you have no audit trail and no proof as to what’s been given and what’s been received.
It’s crucial when dealing with cash that this process is in place.