Accepting payment in cash may seem like a cheap and convenient option for your junk removal business, but that’s not always the case. Read on to learn why the cost of accepting cash payments can far outweigh the benefits.
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Accounting costs
If you’re like most business owners, your least favorite task is probably accounting. It’s complicated and time-consuming, and it can be easy to make a costly mistake. You may even use an accountant to help you deal with this task so you can get back to work. Cash payments just complicate your accounting process and therefore make it much more expensive
Your accountant requires you to keep accurate records of every purchase and payment. But cash doesn’t leave a paper trail, making it much harder to track. Accounting is much easier to manage with clear records of each transaction with each customer’s name, balance, payments, and more. Maintain simple, seamless records and take the guesswork out of your accounting. When your accountant has to spend fewer hours sorting through your records, your overall costs are lower.
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Risk of theft or loss
Cash can be stolen or lost, and when it’s gone, it disappears without a trace. Cash is easy for criminals to get hold of, and can also present a temptation to employees. Research shows that small and medium-sized businesses lose billions of dollars each year due to cash theft!
If your junk removal business doesn’t have to handle or transport cash, there are fewer opportunities for internal and external theft to take place. And if money does disappear at any point along the way, you’ll be able to track it quickly and easily.
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Cash handling costs
Cash transactions cost your business money you may not be aware of. When your business accepts cash payments, you have to pay bank fees to deposit and process cash. For larger jobs, you might even need to pay for an armored car to transport money to and from the bank. The expense of handling cash payments could be better spent on your business needs.
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Wasted time
Dealing with cash is time-consuming. It takes time to sort and count cash properly in order to avoid mistakes. Your customers have to go and withdraw the cash to pay you, which is inconvenient and time-consuming for them. If they don’t have the right amount on hand, you could face a bottleneck in receiving payment.
Plus, cash can’t be deposited over your phone like other forms of payment can. You’ll have to make time to go to the bank physically and wait in line to deposit cash. Online payment solutions deposit the exact amount into your business bank account. They may also integrate with your accounting software, which saves you the time you’d spend manually inputting data.
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Lack of professionalism
Cash payments make your business seem outdated and less professional. Online payments add legitimacy to every transaction you make. They ensure that your junk removal business comes across as modern and professional.
Today’s customers prefer and often expect online and/or credit card payment options for everything they purchase, and your service is no different. Online payments send a clear message to your employees that all transactions are recorded and easily visible. They also ensure that vendors and suppliers take your business seriously.
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Harder to fight disputes
You hope to never have to deal with a payment dispute, but as any seasoned junk removal business owner knows, things don’t always go as planned.
As stated above, cash doesn’t leave a trace. If you ever have to deal with a payment dispute, such as being paid late, being paid only partially, being paid with bad bills, or not being paid at all, it can be your word against a customer’s. Online payments keep everything transparent to help avoid or resolve disputes and prevent chargebacks.
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Lost opportunities
Cash payments can cost you business opportunities. People have come to expect online payments and can be put off when you don’t offer them. It may even make them more likely to choose one of your competitors instead next time.
This is especially true for the younger generation who prefer the quick and seamless nature of online payments. When customers have the flexibility of online payments, there’s less hassle and headache for you to deal with, so everyone wins.
A better way to pay
If you’re ready to say goodbye to cash payments, the good news is that Workiz makes accepting online payments easier than ever. Workiz Pay is the simple and secure online payment solution that lets you take payments while on the job.
Workiz Pay uses Stripe technology and brings you fast service, improved customer support, and optimal control over your online payments. You can request payments on your estimates and invoices, making sure you get paid on time – or even ahead of time with our pre-deposit option.
Collect payments in the field using Workiz card readers right on the mobile app. Techs can process payments without accessing customers’ credit card information, which helps put customers at ease. Workiz Pay accepts major credit cards, such as Visa, Mastercard, American Express, and Discover Card. You can even get tipped with a credit card, which ensures your techs get the tips they deserve for their top quality service.
The Workiz Pay dashboard makes accounting a breeze. It lets you keep track of all your online payments, payouts, disputes, and make any changes to your statement descriptor. You can view your payments easily from the Payments Report in the Reports page. Workiz Pay also seamlessly integrates with Quickbooks. If you encounter any work disputes, you’ll have the clear proof to let you resolve them favorably.
Businesses and customers prefer Workiz. It’s the convenient way to grow your junk removal business. Find out more about Workiz Pay and our other business solutions
