When do you hand out invoices?

Discussion in 'Business Operations' started by Lynden-Jeff, Feb 24, 2007.

  1. Lynden-Jeff

    Lynden-Jeff LawnSite Bronze Member
    Posts: 1,405

    Hey,

    I hate the idea of handing out an invoice at the end of the month, and waiting another month for payment. For example if I sign a contract for april 1st, im not getting april's payment until the end of may. Is it unreasonable to supply the invoice by the end of the first week in april, and expecting payment within 30 days or the end of the month? This way its half work on my faith and half on theirs? Hope this makes sense.

    Cheers
    Jeff
     
  2. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    I bill once a month
    Go out on the 1st, due on the 15th.

    If I'm reading your post right your getting payment up front for 2 weeks in the beginin of the year. It still works out to waiting 30 days after the first invoice.

    How are you going to get people to prepay for fall cleanups. If you bill hourly for cleanups then how do you know the total?
     
  3. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,496

    You should bill each month ahead........if you start in April you require April + May........the last month of the season you don't get paid because you were paid previous month. This way you never work for free and have your $. They haven't paid, you don't mow and lose $0.............this is for mowing. I was going this route but decided not to deal with mowing and stick to construction.
     
  4. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,564

    i don't HAND them out I MAIL them out....LOL
    just razzing ya..

    make sure they are out on the 31st, or at the latest the 1st.

    if you have not done monthly billing before, make sure you are prepared financially to "float" your expenses for a month.
    you need enough operating cash to make it at least two months before you switch over.
     
  5. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    Out on the last day of the month, due on the 15th, late and financed charged on the 20th.
     
  6. StBalor

    StBalor LawnSite Senior Member
    Posts: 798

    1st payment due at signing and future payments due on the 1st of each month.
     

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