# Payment Types



## PlowGuyBri (Dec 23, 2020)

Hey guys, I am relatively new to this site. I had a question on what you do for payments. I do 30 residential properties and one town house complex. A lot of people have been paying me the last two years through Venmo, which I was fine with. This year Venmo is now taxing anything over a $600 amount annually. Do you guys do cash only for customers or accept checks as well? Should I give those who pay cash a little break on the price or give them an extended amount of time to pay? I run this as a side gig to my primary job and don’t use invoices or CC payments.


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## Hydromaster (Jun 11, 2018)

So you’re asking legitimate businessmen how to lie on their taxes/ income?.

cash is king.


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## EWSplow (Dec 4, 2012)

Dang, I didn't know Venmo is taxing anything over $600. I haven't collected anything over $600 lately, but I've paid over that using venmo.
By taxing, are you saying they're charging a fee?
Or, are they reporting as income?
I have noticed on venmo there seems to be a lot of payments for beer.


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## Kvston (Nov 30, 2019)

The smart way is to declare everything. Doing business right costs, doing it wrong costs a lot more than you want to pay.


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## BUFF (Dec 24, 2009)

Hydromaster said:


> cash is king.


Gold or silver works too.


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## Chineau (Aug 24, 2010)

BUFF said:


> Gold or silver works too.


they don't take gold at the beer store or the Safeway, hydro's point isn't lost is the poster running a legit biz? 
can you do etransfers, I like drinking coffee in the morning putting money in my bank account.


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## BossPlow2010 (Sep 29, 2010)

PlowGuyBri said:


> Hey guys, I am relatively new to this site. I had a question on what you do for payments. I do 30 residential properties and one town house complex. A lot of people have been paying me the last two years through Venmo, which I was fine with. This year Venmo is now taxing anything over a $600 amount annually. Do you guys do cash only for customers or accept checks as well? Should I give those who pay cash a little break on the price or give them an extended amount of time to pay? I run this as a side gig to my primary job and don't use invoices or CC payments.


Lol pretty sure Venmo is only reporting it, and not actually taxing you.


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## Mr.Markus (Jan 7, 2010)

PlowGuyBri said:


> Hey guys, I am relatively new to this site. I had a question on what you do for payments. I do 30 residential properties and one town house complex. A lot of people have been paying me the last two years through Venmo, which I was fine with. This year Venmo is now taxing anything over a $600 amount annually. Do you guys do cash only for customers or accept checks as well? Should I give those who pay cash a little break on the price or give them an extended amount of time to pay? I run this as a side gig to my primary job and don't use invoices or CC payments.


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## PlowGuyBri (Dec 23, 2020)

Hydromaster said:


> So you're asking legitimate businessmen how to lie on their taxes/ income?.
> 
> cash is king.


Negative, I claim money made, truck is ran through the business. I just have always had an easy time plowing and getting paid almost immediately with Venmo, I don't know if its acceptable to be knocking on doors the day after a storm asking for payment in cash or check.


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## PlowGuyBri (Dec 23, 2020)

BossPlow2010 said:


> Lol pretty sure Venmo is only reporting it, and not actually taxing you.


Yah they're reporting it, all money made over $600.


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## Hydromaster (Jun 11, 2018)

How does “the business” conduct business?
What does “the business” do?
Does “the business” know you’re using the truck for your personal gains running a side business? 
Does “the business” know the truck is being embezzled and used for commercial snow plowing because I bet the insurance Co doesn’t.

If so, you should know how to collect “the money”.

Sorry about that I guess the government doesn’t care if your business is legal or illegal , Legitimate or not, they don’t care if you’re making widgets or selling dope on the streets they want their tax money and they will come after it.

so no an illegitimate snowplowing operation that’s run as a side gig should only handle cash . 

If your collection method is to have them leave the money in the mailbox in the storm door or a pound on the door and demand payment that’s up to “the business”.


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## PlowGuyBri (Dec 23, 2020)

BUFF said:


> Gold or silver works too.


Catalytic converters too


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## BossPlow2010 (Sep 29, 2010)

PlowGuyBri said:


> Catalytic converters too


You're going to do just fine on this site...


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## PlowGuyBri (Dec 23, 2020)

Hydromaster said:


> How does "the business" conduct business?
> What does "the business" do?
> Does "the business" know you're using the truck for your personal gains running a side business?
> 
> ...


The business is my side business that I pay taxes on, have my commercial policy and buy equipment and materials through. I do landscaping and snow removal in addition to working my full time job. Let me rephrase, I was looking for advice on what methods people use for payments. As I am the only guy and I don't have accounting software or send out invoices. I am getting rid of venmo because they are viewing every $600 transferred as income, even if I send my buddy money for a dinner or trip for example. If I wanted to beat the system I would just be rude and demand cash the day after a storm and probably lose customers. I'm trying to see what timelines people use for payments, should I just ask for check or cash on a monthly basis, should I ask for them per storm, the young generation in my area that owns a lot of the houses doesn't seem to use checks or cash anymore.


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## PlowGuyBri (Dec 23, 2020)

Kvston said:


> The smart way is to declare everything. Doing business right costs, doing it wrong costs a lot more than you want to pay.


I agree with this, I want to build my business and eventually get a second truck, something I cant do from not declaring. Being a solo guy, Venmo was very easy for me to keep track of and transfer payments into my business account. People would send the payment the day after the storm. Is there anything you use for payments, something like "Jobber" maybe? I don't want to pay for a charging service if its not necessary. How often do you bill residential customers? Plowing is very expensive in my area and people are hesitant to pay full price seasons upfront.


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## Hydromaster (Jun 11, 2018)

Cool
Because you started out with a side hustle and then the truck run through “the business” and you’re looking at ways to get around the payment app it didn’t sound like a legitimate business.

We didn’t do perpush work, we have our clients Sign a contract for seasonal service and you can pay us with cash, check, or credit card.

Seasonal contracts cleared up the uncertainty in getting paid and on what the season may or may not bring and the hassles of chasing down money.


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## BossPlow2010 (Sep 29, 2010)

PlowGuyBri said:


> I am getting rid of venmo because they are viewing every $600 transferred as income, even if I send my buddy money for a dinner or trip for example.


This is false information.
the 1099-k only applies to sales of goods or services and does not apply to personal or or family expenses. you can leave venmo if you choose, but any app you choose is going to be obligated by the IRS to comply.

Also, it's 600 bucks for the year, not 600 per transfer

What's your CPA say?

https://help.venmo.com/hc/en-us/articles/4407389460499


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## Mr.Markus (Jan 7, 2010)

I would think that if you dont have invoices it would be hard to keep track of anything you do other than looking at your bank balance/statement. If this were the case I would think that venmo declaring it for you to the government would be a godsend as it would be another way to shurk the responsibilities of doing it legitimately and filing yourself. Bigety bogety boop you get a bill from the IRS at the end of the year and pay it with the interest owed.


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## Kvston (Nov 30, 2019)

PlowGuyBri said:


> I agree with this, I want to build my business and eventually get a second truck, something I cant do from not declaring. Being a solo guy, Venmo was very easy for me to keep track of and transfer payments into my business account. People would send the payment the day after the storm. Is there anything you use for payments, something like "Jobber" maybe? I don't want to pay for a charging service if its not necessary. How often do you bill residential customers? Plowing is very expensive in my area and people are hesitant to pay full price seasons upfront.


Since you want to go legit we do the following:
1. Residential per push:
 A. If I don't know/trust you, you pay a deposit on the season covering my expected hard costs. We bill you monthly showing how that is being used, you pay the balance every storm thereafter.
B. If I trust you, billed monthly.
2. Seasonal. Deposit Dec 1 [1/3], Jan 1 [1/3], Feb 1 [1/3]
3. Commercial:
A. Seasonal: Nov 1 [1/3], Dec 1 [1/3], Jan 1 [1/3]
B. Per push, billed 2x/month.
C. As a sub, varies.

For any invoice we give the client 10 days to pay. That works great with all people who are reasonable. Those looking for something for nothing, well, they aren't't our clients for long.

All business entails risk, find clients who like how you do business and keep them. The rest can move on.


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## EWSplow (Dec 4, 2012)

PlowGuyBri said:


> I agree with this, I want to build my business and eventually get a second truck, something I cant do from not declaring. Being a solo guy, Venmo was very easy for me to keep track of and transfer payments into my business account. People would send the payment the day after the storm. Is there anything you use for payments, something like "Jobber" maybe? I don't want to pay for a charging service if its not necessary. How often do you bill residential customers? Plowing is very expensive in my area and people are hesitant to pay full price seasons upfront.


I and I think most others invoice monthly. 
You can easily email an invoice and clients can pay by check, or whatever method you choose. If you prefer cash, set something up with them to pick it up at their office, home, or wherever within 7 days or whatever of the day the invoice is sent. 
If a month is too long for you, maybe go twice a month. Either way, its a little late to be discussing payment terms, etc with your clients.


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## Dsmits1984 (Sep 11, 2019)

EWSplow said:


> I and I think most others invoice monthly.
> You can easily email an invoice and clients can pay by check, or whatever method you choose. If you prefer cash, set something up with them to pick it up at their office, home, or wherever within 7 days or whatever of the day the invoice is sent.
> If a month is too long for you, maybe go twice a month. Either way, its a little late to be discussing payment terms, etc with your clients.


This is how I do it. I send invoices thru quickbooks, even though this is a "side gig". Going full time here in the next year or two once I get another handful of customers. But in the meantime, you may as well get used to practicing the correct method of book keeping. I can only remember what I did a few minutes ago most days!

OP: I would certainly bill the people the correct way. Uncle Sam gets everyone eventually.


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## Chineau (Aug 24, 2010)

do you folks south of the line use etransfer thru email or text?
Friday I get a call from the owner of a apartment complex I plow, I am traveling and don't have check book can I send you money heck yes!


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## Chineau (Aug 24, 2010)

it isn't a rhetorical question email money transfer in America yes?
when I get up and make coffee in the morning via email I will be depositing money sent to me today can you do the same?


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## fireball (Jan 9, 2000)

What! Nobody accepts Bitcoin anymore


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## SHAWZER (Feb 29, 2012)

Chineau said:


> it isn't a rhetorical question email money transfer in America yes?
> when I get up and make coffee in the morning via email I will be depositing money sent to me today can you do the same?


My account was set up with direct deposit of e-transfers , no passwords for the person paying me money .


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## Mr.Markus (Jan 7, 2010)

I was a little sceptical when a customer first asked me about it but now the majority of my customers do it. And alot of my vendors prefer it as well. 
There is no longer any excuses like "the cheque is in the mail" 
The future is now ...


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## Chineau (Aug 24, 2010)

SHAWZER said:


> My account was set up with direct deposit of e-transfers , no passwords for the person paying me money .


further encouragement to check the money every day.


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## Kvston (Nov 30, 2019)

Maybe I’m behind the 8 ball but are you speaking of ACH or something else?


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## Chineau (Aug 24, 2010)

ach?


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## Kvston (Nov 30, 2019)

Otherwise known as EFT-a bank wire.


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## Chineau (Aug 24, 2010)

is that not commonly used in America?


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## Kvston (Nov 30, 2019)

Ya man its common, just thought you had a new method is all.


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## SnowHampshire (Nov 8, 2020)

PlowGuyBri said:


> Catalytic converters too





Kvston said:


> Since you want to go legit we do the following:
> 1. Residential per push:
> A. If I don't know/trust you, you pay a deposit on the season covering my expected hard costs. We bill you monthly showing how that is being used, you pay the balance every storm thereafter.
> B. If I trust you, billed monthly.
> ...


I like the "2. Seasonal. Deposit Dec 1 [1/3], Jan 1 [1/3], Feb 1 [1/3]"


Kvston said:


> Since you want to go legit we do the following:
> 1. Residential per push:
> A. If I don't know/trust you, you pay a deposit on the season covering my expected hard costs. We bill you monthly showing how that is being used, you pay the balance every storm thereafter.
> B. If I trust you, billed monthly.
> ...


That is some solid info my friend thx


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## SnowHampshire (Nov 8, 2020)

EWSplow said:


> I and I think most others invoice monthly.
> You can easily email an invoice and clients can pay by check, or whatever method you choose. If you prefer cash, set something up with them to pick it up at their office, home, or wherever within 7 days or whatever of the day the invoice is sent.
> If a month is too long for you, maybe go twice a month. Either way, its a little late to be discussing payment terms, etc with your clients.


I do 2x monthly but am considering 1x monthly. Most likely about to enforce a 2 week payment window before I hit them with a penalty. Yea its nice to be flexible, but "give them an inch"....

Venmo is pretty popular and it's nice to get paid right away. They charge a small fee: 1.9%+$0.10 of the payment. All my customers pay by check and I send invoices by email but I've recently had a flag down customer ask to pay by venmo. It's basically simple and instant, they scan a qr code on your phone and you're done. I offer customers the option of payment methods other than check but so far my customers have stuck to checks.


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## Kinport (Jan 9, 2020)

Chineau said:


> it isn't a rhetorical question email money transfer in America yes?
> when I get up and make coffee in the morning via email I will be depositing money sent to me today can you do the same?












In all seriousness, call us outdated but we Americans prefer making our payments the ol' fashioned way. delivering it by hand to our local post master, where it is stuffed into burlap bags and loaded onto a freight car being pulled by a steam locomotive on the great railroad. From there it's loaded onto stagecoaches and taken to further outposts and finally finds its way into the satchel of a local youth riding for the Pony Express and is individually delivered to our 40 acre homesteads. Assuming the stage isn't robbed by bandits, we can expect confirmation of payment anywhere from 6-12 weeks. It's a little antiquated, but hey, it works. Just ask Mark about getting his loader radio delivered. I hear tell that President Buchanan wants the whole nation, from New York to the Oregon territories, connected with a telegram wire.

Edit: what @Kvston said


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