cash vs check for a roof

I also second that they don’t want to report the income on their taxes. I got irritated when I was just offered 5 percent off a plumbing job if I would pay in cash. The guy admitted he didn’t like paying taxes. I told him nobody does, especially those of us paying through our nose to make up for others.
 
My son is an accountant and says the only reason a business would not accept a check is to avoid paying taxes on that income.
Would make me wonder if he is the type of guy who will back up the work if something goes wrong.
 
My son is an accountant and says the only reason a business would not accept a check is to avoid paying taxes on that income.
Would make me wonder if he is the type of guy who will back up the work if something goes wrong.

We've had several threads here on the DIS in the past year talking about the growth in businesses going cash only. I don't see their tax returns to know if they are hiding the money. The stated reason is the expense of checks, credit cards and debit cards. Usually these are businesses that have discovered that not taking checks/credit cards/debit cards has not caused a drop in business, it has only cause a drop in operating expenses.
 


There's few house related stuff that we've had to hire out for (mostly the big stuff, roof, tree removal, etc) but when we do, we do ask if they have a cash rate. I've also bartered in exchange for services (in my case, I do their website in exchange) - we just make sure we get a written receipt for proof of services.
 
Cash = zero proof you paid.

There should be no penalty to a contractor for taking a check. The only reason they would want to do that is to not report all the sales in their books. That means you might have no record in their books of payment. That could impact you financially down the road, could mean no proof of warranty and should you have any roof issues later they might not have you in their records.

Depending on where you live a contractor/vendor may be able to put a lien on your home and you never even know it. Happened to my mother from a roofer. The roofer took all her money but he didn't pay the shingle supplier for her supplies. The supplier put a lien on her home. When she sold her house many years later they said they would have to take that amount out of her sale proceeds to give the vendor ... even though she had already paid in full to the roofer.

There is no way I'd pay for any contractor work in cash ..
.... unless you are doing work under the table and willing to take on the risk.


Sure you have proof that you paid if you pay in cash...its called a receipt. You don't hand over cash unless the contractor gives you a signed and dated receipt. That's just as much proof as a cancelled check.
 
My son is an accountant and says the only reason a business would not accept a check is to avoid paying taxes on that income.
Would make me wonder if he is the type of guy who will back up the work if something goes wrong.

I think there are other reasons, as previously posted. Some customers might write bad checks, which becomes expensive for the business and a logistical headache to get the money back. I imagine some businesses might prefer to give a discount in exchange for the peace of mind that comes from knowing for sure the money is there. Yes, there are unscrupulous contractors out there who just want cash to cheat on taxes, but there are also unscrupulous customers out there who will write bad checks or put stop payments on them once the work is finished.

There are many stores and restaurants that will only accept LOCAL checks or no longer accept personal checks at all because it's not worth the hassle to them. That doesn't have anything to do with a refusal to pay taxes, but with a desire to reduce fraud. In OP's case, the contractor is not refusing to accept a check, just offering a discount for cash, which is different.
 


@teller80 - Chiming in with my two cents: I am a bookkeeper and my FIL owned his roofing business for 50+ years (where I got my start as a bookkeeper).

Cash is fluid. Walk into the bank, deposit it, it's good to pay bills with.
Checks take time to clear. Then there's the "what if it bounces" factor. The contractor then has to spend time and money chasing down the client.
Credit costs the contractor to run. At my current place of business, depending on the card, we have up to a 4% charge on each transaction.

If the contractor has been in business that long and has great ratings, I doubt he/she would mind giving your a receipt along with your contract and warranty. If you'd like to get technical, you can ask for proof of liability insurance before they start. I'd jump on any discount for a roof! Those are expensive.
 
I'm leary of paying anyone with a check since your bank routing number and account number are sitting right there for anyone to steal.
 
Ive done the cash option for several large jobs. If you get a signed itemized receipt that the job is paid then what’s the difference between that and a cashed check?
 

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