Billing - To break down or not?

Discussion in 'Irrigation' started by zman9119, Jul 9, 2010.


How do you bill?

  1. Itemized \ Listed out pricing for each item

    22 vote(s)
  2. General description with total price

    8 vote(s)
  3. I work for free

    3 vote(s)
  1. InterbayLS

    InterbayLS LawnSite Member
    Messages: 1

    When you Itemized the parts do you have to pay sales tax on the mark up? I just do a total and break down every thing i did for the job but not the price of items.

    First time poster :waving:
  2. SoCalLandscapeMgmt

    SoCalLandscapeMgmt LawnSite Silver Member
    Messages: 2,129

    You will have to pay tax on the marked up amount. This is why you should have a re-sale license/certificate so that when you purchase the materials you're not paying tax on them initially. The state wants to get their hands on as much tax revenue as possible so the end user of the product (your client) pays the tax on the full marked up amount. It's quite a sham on the part of the state if you think about it.
  3. ARGOS

    ARGOS LawnSite Silver Member
    Messages: 2,808

    Welcome InterbayLS.

    Inevitably I or my crew do something for free or something for a discount. Other then deducting from inventory with itemizing invoices you can include those courtesy discounts and make sure the customer is aware of it.

    My computer inventory is a mess. I did the regular bi-annual inventory for five years. I spent the extra dinero to get the portable bar code readers that work with my program and reconcile with the server remotely. I haven't done a physical in a year and now it is all garbage data. Gotta stay with the physicals yet they are so time consuming and expensive.

    And to add one more thing to Dan's post. I HATE being a tax collector and that is exactly what the State Board of Equalization requires. Free tax collectors.

    Messages: 18,668

    Ditto....I had a sales tax exempt form and it sure makes the tax computations easier when I pay the state. This is also a reason I don't mark up much. I prefer a high untaxed hourly rate and the freedom to sale upgrades knowing I'm only marking my materials up 20% from cost. If you mark up 20 new RBs 20% and sell a couple of hours of extra work you come way out ahead.

    Also I know a lot of TX irrigators rip the state off on sales tax. The state make the supply houses prove those sales tax exempt forms. If you think the IRS is mean the state tax agencies will make them look like schoolgirls. Play it safe and pay your collected taxes. I just sent the state a big friggin check for all the TX pigtail sales.
    Last edited: Jul 9, 2010
  5. Some Sprinkler Guy

    Some Sprinkler Guy LawnSite Member
    Messages: 167

    If you do lump sum contracts you do not have to charge sales tax in Texas. You pay on the material. If you itemize, then you have to charge sales tax on the materials (repairs). On commercial the whole job is taxable.

    One of the reasons I changed to lump sum was a four year Texas comptroller audit. It was not a pleasant experience.
  6. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    We are going to see more of this in the future
  7. mitchgo

    mitchgo LawnSite Silver Member
    Messages: 2,940

    I wouldn't .. That's a low blow penny pinching move IMO

    Thats like your fast food charging you for kethup, napkins or water cups... I mean they all pay for that ...

    You gotta spend money to make it!
  8. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    Lost tools what is that?
  9. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 26,824

    Mechanic that fixes my trucks started adding a " shop charge" 2 yrs back. Been thinking about it since.
  10. Irrigatetor

    Irrigatetor LawnSite Member
    Messages: 3

    I found that sending a bill with more line items (parts) the customer is less likely to complain about the total hours.

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