Receipt for every cash payment?

Good points ladies. As mentioned earlier, my accountant has stated that I should claim it all as there are so many tax deductions that I won't end up having to pay any unnecessary tax, so that's what I plan to do. Not too worried about paying my employees in cash though, though I do get your point Reggio....i just feel that that would be an extreme case and quite unlikely to happen. ..I Also know that if I didn't offer the cash option, I would have only half as many people interested in the job, and perhaps miss out on the "good" ones who are out there. And that's really more important for me. I guess i have been too much around it to not think so much of a deal about it. From Carpenters, home renovators, painters, artists, gardeners, cleaning ladies, childcare just happens to be on that popular list of jobs people often do for cash. And that is anywhere. Any province. Any State. I'm sure it hasn't subsided one bit. If anything, it has probably grown with the economy going down and people needing to make extra money to survive. I'm actually quite surprised that there seems to be such a gasp about it :) It's very interesting.

I only give you one receipt a year regardless of your method of payment.

I am definitely providing year-end receipts to all clients and claiming all income come tax time. Cheating the system or clients isn't what I meant. It's just e-mail transfers and checks leave a paper trail but cash doesn't. I purchased the duplicate receipts book and will provide receipts the day of cash payments; and have the parent sign it as well. Then they get copy and so do I. Sounds like a plan :) Thank you!

I have the duplicate receipt books and give a statement every week when they pay. It is the prove that they did pay. I still give an annual receipt. For any family that leaves on bad terms I can just say sorry you got your receipts - not my fault you didn't save them and I like that, lol. I just like having the paper trail for me with everything numbered and recorded in order so there is no way to argue that something wasn't claimed as in I am not scrambling to find bank statements to prove what was a daycare deposit of a cheque or what was from a coupon rebate or in my case for felt sales.

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Originally Posted by playfelt

I have the duplicate receipt books and give a statement every week when they pay. It is the prove that they did pay. I still give an annual receipt. For any family that leaves on bad terms I can just say sorry you got your receipts - not my fault you didn't save them and I like that, lol. I just like having the paper trail for me with everything numbered and recorded in order so there is no way to argue that something wasn't claimed as in I am not scrambling to find bank statements to prove what was a daycare deposit of a cheque or what was from a coupon rebate or in my case for felt sales.

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Exactly the same as Playfelt!

I give receipts in January and July, for the preceding 6 months. If a client was paying in cash, and they requested receipts for every payment, then I would likely agree to it. But I STRONGLY encourage people to use email transfers. They have records, I have records.
I know it's not what you were asking; but I personally know of MANY providers who are working "under the table". I do think it's a very short term perspective, due to what Reggio mentioned. It doesn't really bother me, though, since I feel like it is only to their detriment in the end.
I wanted to claim my income because I wanted to "exist" as far as banks, etc are concerned. We know that we will be moving in the next 5 years, so when it comes time to go in for that mortgage, they don't just take your word that you are a daycare provider earning x-amount of dollars annually. They need to see those Notice of Assessments from the last 2-3 years, sometimes longer!! For tax purposes, there are enough available deductions and write offs that I am not worried about paying too much in taxes.