Using Cash in Construction
Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!
There is a notion in business that using cash to pay for materials or service is illegal. IT IS NOT ILLEGAL TO PAY FOR MATERIALS OR SERVICE WITH CASH. It is illegal to do this if you do not properly document the transaction. This is especially true in the construction industry.
This article is going to explain how to properly document cash transactions in construction. Prior to explaining the documentation procedures I am going to explain when and why you would want to conduct cash transactions.
Cash in Construction – Advantages of Cash Transactions
For some strange reason unbeknownst to me, contractors think that paying with cash reduces their income tax liability. HUH?
If you wrote a check, isn’t that the same as paying in cash?
This thought process stems from the thinking that the Internal Revenue Service (IRS) can’t track cash.
© 2015 – 2022, David J Hoare MSA. All rights reserved.