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Old 05-01-2012, 02:53 PM
sixpixels sixpixels is offline
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bills & payroll

Hello,
Iíve been having an issue weekly with keeping up with payroll and the monthly bills. Each week I feel like Iím chasing down customers and scrambling to collect enough money to make sure I can pay everyone. We currently have 4 guys working for us. We have about 150 residential properties and 14 commercial properties. Lately weíve been working an average of 55-60 hrs a week being itís been really busy and we have a bunch of landscape projects scheduled out for the next couple weekends.
Am I missing something or doing something wrong? All of our customers have the options of paying cash, check, online, credit card and a majority of them pay on time. I have even tightened up on buying other misc things that we really need just to ensure we have money.

Any ideas or suggestions?
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Old 05-01-2012, 02:59 PM
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gcbailey gcbailey is offline
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what are your billing date(s) vs. payroll? Sounds like all your money is coming in and going out at the same time.

The ones your chasing down, are they commercial, residential? You say the majority pay on time, but if you have even 10-15 residential clients that are affecting you that much, something definitely has to change.

Last edited by gcbailey; 05-01-2012 at 03:06 PM.
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Old 05-01-2012, 03:10 PM
sixpixels sixpixels is offline
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Billing dates are acattered...some in beginning of month, some middle and some at the end. And your right its comes in and goes right out to bills and payroll. Payroll is weekly.
As for customers paying- Id say i have issues with 2 of the commericals where im constatly calling them but this year i added in a late fee for them in hopes they get with the program.
For the residentials i have customers that pay at the time of cut, some send out check a couple days later. some are on a monthly billing cycle. and its prob about 1-15 im chasing.
I agree somethign has to change but im trying to figure out what or how...
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Old 05-01-2012, 03:19 PM
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gcbailey gcbailey is offline
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weekly payroll? That could be an issue. We've always done two weeks, especially during the spring/fall when the college guys might only get between 8-12 hours a week sometimes, a two week check makes them think they are getting more, haha.

Have you set down and done a good look at every total expense you have? Do you have a dedicated shop, or are you ran out of your home? What about phones, land line, cell phones, data plans...... Have you set down and done a cost analysis of your routes, are they the most productive they can be, are you back tracking across town multiple times a day or week when you could swap schedules? Gas is big for us so we really have to watch it, we cover multiple counties and are going to a couple commercial sites that are close to 40 "country miles", so we have to play it straight.
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Old 05-01-2012, 03:38 PM
sixpixels sixpixels is offline
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Yeah i have gone through all of our exepenses and routing and from what i see we are hitting the route in the most effecient way. As for doing payroll every 2 weeks...i thought about that but im more scared of going that route because then its 2 weeks pay per employee that i have to worry about chasing down and im scared to death of not making payroll.. how to you tell your gus that are busting there asses 50 hrs a week that you cant pay them some of there check.
This is one of my biggest fears.
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Old 05-01-2012, 03:51 PM
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gcbailey gcbailey is offline
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I'm not an accountant, and don't claim to be, I know when I first got "serious" about it I went to a CPA firm and an accountant give me some advice and setup my billing and such. We have payroll 1st and 3rd weeks and bill 2nd and 4th (for contract clients). We still have a lot of residential that pay weekly, so there's always some kind of money coming in (hopefully). I guess we've been real lucky with billing, last year was the first time that there was ever really a major issue with any billing. Some how one of our commercial accounts got out about $1500 behind but it was taken care of quickly, and no issues this year.

I don't really know what to say outside of trying to find a small business adviser or someone. I guess if I'm understanding everything, the money is there, it's just getting the money on time is the main issue. You could start coming across a little harder, but then risk loosing accounts and then really have a financial issue.
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Old 05-01-2012, 04:28 PM
sixpixels sixpixels is offline
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Thx for the help and advice. I'm going to call my accountant and see if he can provide me with any help.
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Old 05-01-2012, 04:38 PM
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snomaha snomaha is offline
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Are you sure you are profitable? Don't know how long your season is but it is pretty common to start out the year in a cash flow crunch - payroll, materials and supplies need to be purchased before customers invoices are being paid.
Do you have a accounts receivable process in place? We track how often our A/R turns over and if it gets above 35 days we know we will be dipping into our line of credit. I can share the formula we use if you are interested.
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Old 05-01-2012, 04:48 PM
sixpixels sixpixels is offline
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Our season is 8 months long. I agree about the beginning of the season crunch but i noticed me chasing to get money for payroll at the end of last season also.
Im trying to get this resolved so i dont run into the saem issue all season.
As for profit. Yes were are making a profit and I would be happy to se your formula. Anything that can possible help im interested in. THX!
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  #10  
Old 05-01-2012, 04:56 PM
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Patriot Services Patriot Services is online now
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How to say this without sounding like a dick. You are running a business with employees and your living paycheck to paycheck? I will venture to guess you have no clue of your true business costs. What are you going to do when your payroll comes up short? Your CPA should be telling you this, but I guess as long as he gets his check he wont.
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