Cash paying clients are great until....

[LAWNS AND MOWER]

Cash paying clients are great until they forget that they didn't pay you for the last mowing or two. This has happened on two different occasions. I take out my trusty index card that I keep on each client that shows when mowed and if paid. After assuring them they didn't pay they pay me and walk away pouting. The only two ideas I've come up with are have them initial after each cut on the index card or require checks. Any other suggestions????

[lawnboy82]

send bills, charge tax, get paid, have records.

somebody is of course gonna jump in here with the word "contracts"

[bubble boy]

i've got a customer who pays me cash, she insists i sign the invoice for her own peace of mind. this ensures there is no confusion, on either her or my part. but i prefer cheques (post dated for the season is preferable!)

i get handed a lot of cheques, as do the guys. always a pain and i have lost a couple. i always tell people mail the cheques, and it says this right on the invoice, but some don't get it.

some lco's give a discount for upfront payment. i offer it but haven't got any takers.

another option is credit card, but i haven't looked at whats involved or what it costs me.

[lawnMaster5000]

i have the same prob with cash customers disputing the fact that they have outstanding bills. THey claim things like, we gave you that $5 two months ago when you were here and then the rest last week, and ohh ya the check that i mailed in late to cover teh rest of your bill. -- Well i keep perfect records and send monthly statements etc. If there is a mistake i do everything possible to make sure its not mine.

How do you prove they didnt pay you? What to do next when they refuse to pay?

PS. I dont usualy accept cash payments for thisvery reason, but some people jsut wont pay unless i take it then.

[kutnkru]

I have a friend who still does all his business cash - he doesnt have contracts for his clients.

He has a 3 part carbonless copy that lists his services, and on the bottom it has a space for a hashmark if they have paid. He checks off the services, tallies them up, and leaves two copies(white/pink) with them.

If they pay him there on the spot, he puts a hashmark on their copy(pink) and takes two(white/yellow), if not they submit a yellow copy with their payment.

I would strongly advise that you find a way to implement an "agreement" into your billing system, if not you could try as stated above.

Good Luck!
Kris

[thelawnguy]

If you are going to keep records, be it an index card or 3 part handwritten reciept you may as well take a check to eliminate any problems. Its all taxable anyways. Now, if you are going to work for cash and rely on everyone's word and memory...

Biggest negative to working on a cash-only basis, wait til a client dies, goes to a rest home, etc and see if you get paid. Fat chance.

[TJLC]

I may get hammered for this but... Should you even be admitting that you are taking cash for your services?

[kutnkru]

TJLC

Its not illegal to work for cash. Its only illegal not to claim it - LOL!!! :laugh:

Bill brings up some valid points about trying to collect from estates upon the untimely death of a client. I agree that receipts help, but if someone has not paid for your services by the second week dont be foolish like one LCO I spoke with who claimed that he had 3 accounts who have been up to six cuttings past due this season alone. He works on a cash basis and I cannot understand why if this is how you plan your business that you would take the chance of working for free after the second cutting???

Doesnt make much sense to me to flaot clients for such lond and/or extended durations.

Kris

[MATTHEW]

I'd like to see one of these cash and dash guys try and buy a house. The bank will just LOL.:p

[dan deutekom]

Nothing wrong with working for cash.
Just issue receipts, keep copies of receipts and claim it. If you do this, you are a business. If you don't do this you are a scrub.

[HBFOXJr]

It's all about record keeping and it's why you have overhead when you think you don't.

You otta keep records no matter how the customer pays. You should get paid for record keeping just like working in the field.

The customer should have a canceled check, cash receipt, money order receipt or credit card slip for each bill you give them. If you say they didn't pay for a certain invoice, and they should be dated and serial numbered, and they can't provide proof of payment, tough. Burden of proof is on them.

Didn't anyone ever ask you guys for proof of payment?

[Runner]

I might also add, that an invoice # on the check is many of times helpful. Situations can arise such as like one of my customers, pays for his lawn, and he pays for his father's but always wants seperate bills. Another customer owns a rental, same thing. This way I can tell what bill it is. Also, if you get a check from a customer a month late or so, it's easier to tell what bill they're paying. This way, one doesn't get overlapped and they say. "That was paid!"

[LJ lawn]

this is for everone who wants to check out the tax law go to:http://w3f.com/patriots/thelaw.html i don't know you tell me,seems like reporting your income is voluntary.

[lawnMaster5000]

Well i really hope that you are not talking to me about tax evasion. B/c i am legal in all respects. I accept cash as a payment method (sometimes) --> that payment still get recorded and taxes paid on the income.

[LAWNGODFATHER]

I don't care what you all say. I have a seprate co. on Quick books Pro I set up another LCO and record my CASH customers. This will keep track of them, and I record all transactions on it or CASH. YES you can put a lein on a proberty against a cash customer. I've had to do it. The only thing that does suck is if they die and the estate gets sold before you find this out. Which the way realestate is going these days, the prop. could be sold in less than a week and you can say bye bye to your money.

LGF:blob1:

[Dochere]

Monthly Billing!

There are enough programs out there to make it easy for anyone to bill monthly (Quick Books, Peachtree, etc). And to top it off, there are preformatted invoices that work hand in hand with these programs. Some programs are as little as $70-$100 bucks. So why not? A little note at the bottom saying please submit a check or money order to the above address. And if some asks why, tell them it is to protect you (the consumer) as well as our company. If they do not have a checking account, a money order will work, if they say there is a fee to get a money order, refund the .80 cents to them. If you absolutely have to take cash, issue a receipt. If they say, "I paid you" say, "Show me the receipt". Simple.

[kutnkru]

Originally posted by Dochere
... If they do not have a checking account, a money order will work, if they say there is a fee to get a money order, refund the .80 cents to them. ... Spoken like a TRUE gentleman!

However, if they are not competent or for whatever reason not able to have the checking account, I would add up all those little 80 cent rebates and ADD them to their final clean-up statement!!!

I am not in the position to float clients anything. My clients dont offer to pay us more for a service, and I am surely not about to "discount" my services for any one client above and beyond the quoted prices.

Do I need the money that bad, Nooo. But why should one client receive preferencial treatment over another. Its the same thing as saying no to other clients who wish to have their postage rebated.

Is there a difference between the principle of the money order and the postage??? I believe there is not. Either clients can afford our services, or they cannot. Its cut and dried, IMHO.

Kris

[Russ]

We do accept cash customers and we have lost some income because our customers died or went to nursing homes with alsmineers.---but I'm not sure we were the bigest loosers in these situtations.