How Do You Do Your Billing

Discussion in 'Starting a Lawn Care Business' started by the angler, May 31, 2008.

  1. the angler

    the angler LawnSite Member
    Posts: 56

    right now i have been makeing my own invoice on the cumputer and mailing them at the end of the month....i have over 20 accounts the problem im running into is paople paying late end of the following month even with a due date and small late fee...........i do this as a second job and it is costing me ton of money so far out of pocket till i get paid????????any one else goin through this or am i billing for my services wrong??????
     
  2. MOW PRO LAWN SERVICE

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Posts: 1,566

    Yep late payers will sink you if you are out a lot a month,being solo will help but its still hard with fuel prices..
     
  3. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,916

    angler - so, you are billing at the end of the month for services rendered for that month.
    Here is one problem I see - don't make the due date the end of the next month. That would mean that you are 60 days in arrears on the first cut you billed for. Make your due date the 15th of the next month instead. Keep your late fee policy - AND if the people don't pay by the 15th of the next month you CUT OFF service until they pay.

    Also, hope that you have all this on an agreement and it contains language about 'collections' and how you intend to deal with late pays. This language is a bit of a threat, but you have to have it to avoid lazy customers.
     
  4. jim163

    jim163 LawnSite Member
    Posts: 149

    I hate waiting for money, but its part of being in business for yourslelf.
     
  5. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Posts: 867

    Well, you're always going to have a certain amount of late payers. Accept that now. They get behind, you'll want to drop them, then they'll catch up, you decide to keep them, then they fall behind, you'll get pissed, the cycle continues until it is broken. Either you drop them, or you write a letter or better yet talk with them personally about paying on time. Offer solutions, like having them pay in advance at the beginning of the month.
    You can't "make" them pay on time. If the account is worth keeping you will find a way to keep it or accept the fact that they are going to keep paying you late (along with a late fee!) because it's always going to be the same ones paying late and the same ones paying on time, anyway. If you can't work it out or accept it then drop it. I have plenty that I have dropped because of it. I also have really good accounts that I don't mind if they pay late. I know they will pay and I am glad to have that account. Good luck! Don't let it stress you out too much.
     
  6. billslawn89

    billslawn89 LawnSite Bronze Member
    Posts: 1,364

    i use the software quicken home and business for my invoices,,keeps track of everything. my due date is 15 days from invoice date sent out on the first of every month.
     
  7. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858

    Yep, that's just the nature of people. Some pay as soon as they get the bills, some pay all their bills at the same time, like once a month, reguardless of when they are due, and the tight asses wait till the last possible day to pay a bill before it's "late".

    My customer base, about 1/2 pays within the first week of getting an invoice from me, 1/4 is about 2 weeks, 1/6 waits till the last week of the month, then there's that tiny bit that drags it out for a good 30 to 45 days. These are the same ones that also "loose" your invoice and come out and randomally ask you what they owe you, they are also the ones most likely to be "chummy" with you, offer you a drink when you are there, or just try yo "be your friend". Unfortunately it's these people that are always out to either get service for free, or if they can't do that they will drag out paying you as long as they possibly can. Is it because they are not satisfied? peobably not. More than likely they are just dicks.
     
  8. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    I use Quick books pro for invoices and send out invoices at end of the month for that months service. All of my invoices are due on receipt except national accounts which are net 30. Accounts that don't pay by the second mowing of the following month are canceled for non payment.
     
  9. amor4421

    amor4421 LawnSite Member
    Posts: 189

    All of my customer's pay on the 1st for that month. I have not had anyone complain. They all pay within the first 5 days of the month. It is hard to change your existing clients but try it out on the new ones you get. invoice them 1 week before the 1st. Let them know it is due by the 1st for that month. example.... pay on june 1st for the month of june. works pretty well for me. Only with residentials. Commercial is different. let the new customers know that they pay on the first for that month.
     
  10. k911lowe

    k911lowe LawnSite Senior Member
    Posts: 526

    set up your accounts to pay in advance and then bill some on the 25 for the following month and some on the 10th for work between the 15th and the 14th of the following month.its tough to get started but you can do it.i have done it that way for the last 10 years.
     

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