Burand’s Agency E&O Blog: Tip #17

By Chris Burand | Burand's Agency E&O Blog | December 5, 2012

Is Your Agency Still Accepting Cash Payments?

Relatively few agencies today, at least relative to ten years ago, are accepting cash. Technology will reduce cash payments even more. The means to never accept another cash payment already exist, but this industry seems to be stubbornly committed to winning the prize for the last to adapt to new technology. Therefore it may take some time before all agencies no longer accept cash payments, which is unfortunate because accepting cash payments increases an agency’s E&O exposures. The problem with cash is that it is more difficult to document than any other form of payment and it disappears easier than any other form of currency. The result is that without proper documentation, no way exists to counter a client=s claim that they paid $x even when they did not. Additionally, accepting cash severely reduces agency productivity.

The best solution is to simply stop accepting cash payments. I have never had a client that quit accepting cash who lost any material quality business as a result. Insist on checks, credit cards, or money orders. If you must continue to accept cash, absolutely make sure the customer not only gets a receipt, but initials it and the person taking the money initials it and copies of the dual initialed receipt are made for both parties.

 

 

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About Chris Burand

Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485-3868. E-mail: chris@burand-associates.com. More from Chris Burand
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