Anyone ever had problems with payroll and cash flow?

Discussion in 'Business Operations' started by bwanderson79, Aug 9, 2013.

  1. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    On commercial I agree. Most of the time I have to play by their rules on payouts as well as many other things.

    On residential- if you think it would be over whelming then your still running the old school way which is why it is. I had a hard time buying into the idea 3 years ago. But once adapted it was the best thing we ever did for the company. It fixed multiple problems and not just cash flow. Look into a better office system and nessesary software to make it happen. I will say I relie on SAP very heavy. And could in no way do it with out that system. But fact is we do use it, it is effective. We fixes issues we had, and I could bill out 1000 of customers with less time than monthly.
  2. bwanderson79

    bwanderson79 LawnSite Member
    Posts: 72

    All accounts are residential lawns ranging from a few thousand square feet to 1/2 acre. I have one Scag 36" walk behind and a Honda 21" push mower. All Echo/Shindaiwa trimmers and BP blowers, the largest sizes available for each.

    My thoughts after reading some of the posts is to possibly go to bi-montly payroll and start communicating with the slow payers to get paid more quickly. I am also looking into trading in the Scag for a more productive mower such as the Wright Stander.

    Again, I appreciate all of the input here, its been great. I like hearing how others, especially bigger operations, have dealt with this issue.

    My thoughts on billing every week is that it will become annoying to most customers. I think billing once per month is sufficient, as long as I can get the slow payers to speed up. If I can't, then I may consider dropping them in the future.
  3. bwanderson79

    bwanderson79 LawnSite Member
    Posts: 72

    What is SAP? I saw that pop up when looking for accounting software a few weeks ago? What are your thoughts?
  4. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,400

    Thanks for the info, but size and type of accounts has absolutely nothing to do with cash flow.

    I do believe you're on the right track, though.
  5. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    SAP. Look up Service Auto Pilot.

    Some of the methods that the owner helped my implement have been best thing since sliced bread

    I don't care if your billing 1 or 1000. Don't care in your emailing or snail mail or both. Monthly billing, weekly billing , daily billing or a combination of both. This system can Handel it, track it. With taking zero extra time to do so
    Last edited: Aug 20, 2013
  6. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,551

  7. Charles

    Charles Moderator Staff Member
    Posts: 7,886

    My favorite customers are the ones who go to their bank website and set you up on auto pay by mail. They can set it up for every week or 2 weeks. Whenever you are scheduled to mow. Then they just forget about it for the season. No billing. No paper work for them ie writing checks, etc. I usually work it around to where I get the check the day before I mow
  8. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    . Same concept. Just take it one more level-- this check enters itself as being paid, and drives itself to the bank for deposit
  9. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Auto draft is the way no doubt, but the majority of people won't go for it? what safe guards are in place to protect the customer from being over charged? besides most of us are not well known enough as an established company that customers would trust enough to have an auto draft in place.
  10. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    my local pizza place has mine on file. they don't Mis - charge it

    If I suspect wrong activity, I call the bank and block the transactions, that pretty easy.

    Not established enough? -- What your really saying is, I shouldn't trust you enough. Ill add that if I don't trust you enough with my CC and to use it properly, I more than likely wouldn't trust you around my trophy house wife, or kids or home. I wouldn't trust you enough to get the job done on time, and thus wouldn't hire you in the first place.

    The bigger deal you make of it when selling them, the more questions and doubt they have.

    " for billing what we do is create an invoice once per week after we service your property. We email you that invoice, and keep a credit card on file. 24 hours after emailing you the invoice, we charge the card unless you contact us otherwise. This way you avoid having a large bill at the end of every month and its very simple and convenient for you."

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