Starting Landscaping Company, Accepting payment?

Discussion in 'Starting a Lawn Care Business' started by MrBrownThumb, Mar 4, 2012.

  1. MrBrownThumb

    MrBrownThumb LawnSite Member
    Messages: 41

    My friend and I are starting a landscaping business. I am sorry if this has been asked. We are going over some thing's and came on the subject of payments. How do most people here accept payments? Do you accept personal checks and cash only? Also do you have the customer's write the checks out to your personal name instead of the business name to save on taxes? I just want to get the general consensus on what is typical for the most part.

  2. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    Knowing the cost of the clients cut per week, Figure out how many weeks there are in your cutting season, divide that by how many months you'll be working
    and have the client agree to x amount of months at equal payment. Get the post dated cheques up front and then you don't waste alot of time and money chasing people at the end of the month. That can be frustrating. Have them sign a contract for assurance. Also if you have to go to court with them, you need a written contract as proof for the judge.

    There are alot of detailed discussions on other things you can do with contracts if you search them on this site.

    Cash leaves no paper trail. All banks leave a paper trail.
    Last edited: Mar 4, 2012
  3. MyYardPeople

    MyYardPeople LawnSite Member
    Messages: 38

    I have them write the checks to me (helps with taxes). I also accept debit or credit cards on my iPad with square. It's free equipment, no monthly fees and I like it cause it keeps up with receipts and you can email or text them to customers. I also use it to log my checks and cash so I do have to have a separate receipt.
  4. LawnSite Member
    Messages: 6

  5. superdog1

    superdog1 LawnSite Member
    Male, from Lebanon, PA
    Messages: 218

    I keep track of everything I do and at the end of each month, I just send a bill. I have only been burned once and that was for $70. Perhaps the area you live in, people are less honest. Myself and the customers like getting a monthly bill. They only have to write one check each month. Good luck with whatever you do?
  6. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    All you need to do is setup an account so when you get audited you'll have money to pay the fine you'll get.
  7. superdog1

    superdog1 LawnSite Member
    Male, from Lebanon, PA
    Messages: 218

    Ok, I give, a fine for what?
  8. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    some bad advice here...

    you will have to check the laws in your STATE. BUT in most states. tax MUST BE COLLECTED, and it MUST BE CLEARLY INDICATED ON THE INVOICE.

    with this info, a cash paying customer will RUIN ANY BUSINESS.....
    DO NOT calculate and devide by 12.

    invoice for work preformed at the end of the month, and manage your own money.

    dont let others hold your money.

    Best of luck
  9. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    Just giving advice to him if he wants to put money into his personal account and then get caught by the State or IRS.

    Cash is ok,as long as you put in in the right account.
  10. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,725

    If you are really running this as a business then this is not cash. And no checks must be made out to my business name. We bill at the end of the month and what is nice is going to the P O box and finding 50-100 checks waiting for you about 10 days into the next month. That's the big wave the rest trickles in with one final wave of checks a few days before the next billing cycle.

    As for waiting for them to come to the door with my money :laugh::laugh::laugh: yea right that would cost us 3-5 lawn cuts a day per crew. Run it like a business your be happy you did.

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