Cash or Card? Tracking Payments Made Easy for Local Service Businesses

If you're a solopreneur running a local service business—be it as an electrician, car detailer, massage therapist, or handyman—you likely receive payments through various methods. These can include cash, Venmo, checks, Square, and sometimes even bartering. While receiving payments is beneficial, keeping track of them can become complicated.

Sound familiar? Let’s break down how to make your payment tracking clean, simple, and stress-free—so tax time doesn’t turn into panic time.

Why Tracking All Payments Matters (Yes, Even Cash)

Accurate tracking helps you:

• Know your true income

• Claim every possible deduction

• Avoid tax penalties

• Spot trends in your business

• Look professional if you ever apply for loans or funding

And let’s be real: The IRS isn’t a fan of “guesstimates.”

Common Payment Methods for Local Service Business

Chances are you’re using more than one of these:

• Cash – still common, but hard to track

• Checks – some clients still swear by them

• Apps – Venmo, Zelle, Cash App

• Cards – through platforms like Square, Stripe, or PayPal

• Bank transfers – direct deposits or ACH

• Invoices – sent through tools like QuickBooks Online, Square, Wix, Wave, or HoneyBook

How to Stay Organized (Without Losing Your Mind)

Here’s a simple system that works—even if you're not a numbers person:

1. Choose a Central Recordkeeping Tool

Pick one place to track everything—spreadsheet, bookkeeping software, or even a paper ledger (not ideal, but better than nothing).

If you want easy syncing with bank and payment apps, use tools like:

• QuickBooks Online

• Wave (free!)

• Xero

2. Log Every Payment Weekly

Don’t wait for the end of the month. Set aside time each week to:

• Enter the payment method

• Record the date, amount, and client

• Add any notes (e.g. “Cash tip from landscaping job”)

3. Snap and Save Receipts or Payment Screenshots

Especially for cash and peer-to-peer app payments. Use apps like:

• Expensify

• Dext

• Or just upload photos to Google Drive or Dropbox

4. Separate Business from Personal Accounts

Even if you’re solo, having a separate business bank account (and ideally a business credit card) makes tracking way easier—and cleaner come tax time.

Bonus Tips

• Label income sources clearly – Was it a cleaning job or a lawn care gig?

• Use invoicing for repeat clients – Makes it easier to track and looks professional

• Mark payments as “received” right away – Avoid chasing payments later

As a local service business, you’ve got enough to juggle. Keeping your payments organized doesn’t have to be complicated—it just takes a little consistency.

Whether your clients hand you cash or send a Venmo at midnight, with the right system in place, you’ll stay on top of your money, sleep better at night, and cruise through tax season like a pro.

Need help setting up a bookkeeping system that works for your style? Let’s chat—I help solopreneurs keep more of what they earn.