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Billing lawn cuts and adding sales tax ?

Discussion in 'Lawn Mowing' started by Earthscapes, Feb 7, 2001.

  1. Earthscapes

    Earthscapes LawnSite Member
    from WNY
    Posts: 63

    I'm trying to decide the best way to bill at the end of the month. My season runs from mid April to mid Nov. so thats 30 cuts and 8 months.
    1. Take the total season divide by 8 months ? only problem here is skipped cuts in the summer. not that i want to skip any. ie. 30cuts x $25=$750/8 =$93.75
    2. Every month bill for what was cut ? so April would only have 2 cuts due and Nov. may only have 1 due. But the rest of the season would be a higher payment and more paper work for me.

    Now for the tax part. Should i add the tax into the weekly price ?

  2. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    As far as billing goes, I just bill at the end of each month for whatever I did for that month. As far as taxes go, It must vary from state to state, because I have never heard of charging sales tax for services sold, just products sold.
  3. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    Here is how we bill our clients.

    We figure that from 1 April to the 30 November that we contract for 32 cuttings. I then divide 32 by 8 months and bill for 4 cuttings each month. If we are unable to cut them as indicated on our mowing calendar, then a reduction in billing is made accordingly.

    If we provide other services be it fert or shearing we add them to the billing. We then throw in the NYS 8% tax, add it up, and chunk it in the mail on the 15th of each month.

    Where abouts in Western NYS are you located??

    Welcome aboard.
  4. Hello Everybody:

    We had statements ready at the last day of the month & we billed for that month so we were billing in the arears.

    We found out the hard way if you try to bill in advance it really increases customer calls & more problems. Not worth the trouble. You do your job, do it right, charge what you say you are, they pay you. Works 99% or more of the time!

    Sent out bills on the first day of the month, few times second day of the month. We only billed for services completed. The bill was considered late after the 15th. We didn't charge late fees but at the 17th we sent out late notices, To the chosen few, after while they get tired of it & pay on time. We would have seperate note asking if there were any problems with our services?

    In Georgia, you can't tax labor!
  5. John DiMartino

    John DiMartino LawnSite Silver Member
    Posts: 2,555

    According to my accountant,I am not to tax for any services provided,in NY anyway.I ve been doing this for years If I'm wrong-i gotta lot of tax to repay.I am to charge tax on for products sold,not included in the service or sold separately of the service.Im going to make some calls to confirm this now.
  6. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662


    I just got off the phone with my accounts partner. I can't believe the sob took a vacation when he KNOWS how important LawnSite.com is to me. (oops that was my therapist-LOL) Anyway he said that when we buy fertilizers and products that are going to be billed as part of a service we will be tax-exempt at the time of sale. We then bill the applicable sales tax upon completion of the service.

    As far as lawn care goes, he stated that we MUST charge sales tax according to whatever county we are working in. Ours like most is 8%, the neighboring county is 7-1/2%. So just make sure that if you service multiple counties that you dont wind up charging too little.

    Hope this helps to clarify things a little better. If you have any questions about it John just e-mail me and we can hash it out with our accountants. I'll even pick up the tab.

  7. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    You NY guys can read it yourself at http://www.tax.state.ny.us/pubs_and_bulls/publications/sales_pubs.htm Check out publication 750, page 4, under Taxable Services: "Maintaining, servicing and repairing real property both inside and outside buildings. Examples are cleaning, painting, gardening, snow plowing, trash removal, and general repairs."

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