*Must Read* Customer billing

Discussion in 'Business Operations' started by K.Carothers, Jun 28, 2006.

  1. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    It has been said 1000 times on here but I wanted to say it again in its own thread.

    I was billing customers at the beginning of the month for the previous months cuttings.

    This method had me holding 10k worth of invoices for 1 month. That amount is hard to float and at the same time pay for your expenses.

    I started 2 billing cycles that cover 1 months cuts.

    1 is on the 1st of every month and 1 billing on the 15th.

    This way, you have income coming in every 2 weeks.

    One step better is to collect prior to the months cuttings(I still have not broken into this, yet)


    kc
     
  2. DJ Contracting

    DJ Contracting LawnSite Senior Member
    Posts: 487

    I agree with two billing cycle per month it's nice having money come in twice a month.
     
  3. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    finally someone listens to me! Just kidding. I've been doing this for 3 years now and wouldn't do it any other way.
     
  4. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    At least you have money coming in, my bills are due by the 15th and I still had 2/3 outstanding, to date I still 43 people that have not payed for May mowing. Time to go to credit cards, I considered it at the begining of the year and decided against it, theres no question as to how I will be billing next year. Total BS, and late/non payers are the first ones to cry when your a day late wondering why you havent cut the grass yet when there was a monsoon the day before.
     
  5. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    Boy is that the truth!

    kc
     
  6. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    LOL, Sometimes it takes me 1 1/2hrs to watch 60minutes:hammerhead:


    kc
     
  7. quiet

    quiet LawnSite Senior Member
    Posts: 720

    I've posted this before and taken a lot of criticism, but it works for me. My start date becomes the customers "billing date" forever. If I start service on the 10th, you get a bill from me every month on the 10th covering the period from the 10th to the 9th. I'm billing somebody every single day of the month, so more importantly, I get checks at my PO box every day. I go to the bank every Saturday.

    Having people send me money is what I want. I just mow their lawns in exchange for them sending me money. I like invoicing!
     
  8. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    That is the way to go. You should try to do it with your new customers. I bill everyone in advance now. I figured there would be alot of people that would be leary of this, but really aony about 1 or 2 people a year say they wont do that. Hint Hint::: if they tell you that, its your chance to turn and run.
     
  9. logan

    logan LawnSite Senior Member
    from FL
    Posts: 315

    [QUOTE=quiet My start date becomes the customers "billing date" forever. If I start service on the 10th, you get a bill from me every month on the 10th covering the period from the 10th to the 9th. I'm billing somebody every single day of the month, so more importantly, I get checks at my PO box every day. I go to the bank every Saturday.

    I also do the same thing. I just started a new lawn last tuesday the 20th. I sent her a bill for june 20th-july19th. She will be sent another bill on july 20th, for july 20th -august 19th. It is a very simple way to bill people. The best way is to ask them if the really need a bill sent to them. Most say no. I make a bill for them, but leave it in the computer.
     
  10. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    i bill once a month and it just works out perfectly

    majority come in first week then a good amount the following weeks and the final week the couple scattered checks and people coming to the doors thinking we are angry because they forgot to pay

    always have a flow of checks coming in
     

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