Question about billing...

[The Professional]

Hello all, i am new to the forum, but i have read it since last year some.

I have been around and learning about lawns and landscaping for years but only as a hobby, and as extra cash back in school 10 years ago, as i have had another business. This is my first year of doing lawn/landscaping as a business and alot of my other business practices dont transfer over to this one. sorry if some of my questions seem dumb to the old hands at it.

My question is this: say i have mown each account 3 times this month so far and i will get in one more mow before the first, do i send out the bill now with the mow i am going to do added on the invoice or wait till i actualy do it. i am afraid that if i send out the bill now that it will get there a day or two before i do the final months mow and they wont want to pay because i havent done it yet.

What is you advice or what do you guys that bill monthly do. thanks for the help.

[rogerservesyou]

Pay as you go, or set up set invoicing dates all customers agree to in the contract.

[dwyman]

Invoice them the same day or after you do the job. Occasionally I will bill for tomorrows work and just drop off the invoice when I'm there doing the work. That'll save you a stamp and get it there faster so you can get paid faster.

[Elwood]

Billing as you go is fine when you have fewer accounts, but as you get larger, you will spend countless man hours chasing your money. Bill on the first day of each month for the previous months work. Usually due upon reciept or Net 15 days. If no payment at 30 days suspend service until payment is made in full.

Things like this need to be spelled out in a written agreement with you and the client.

[ECS]

I send out all invoices on the first. I would not send out any bill with work on it which was not completed at tthe time of sending it.

[Littleriver1]

I bill on the 1st of each month. Try to get an email address so you can save time and postage. 75% of my accounts use email. It's also a nice way to communicate when customers are out of town.

[rogerservesyou]

I bill on the 1st of each month. Try to get an email address so you can save time and postage. 75% of my accounts use email. It's also a nice way to communicate when customers are out of town.

Have you looked into paypal invoicing?

[thompsonlawncare]

i just send a invoice on the 1st and they have till the 15th to pay

[Team Gopher]

Hi The Professional,

I have seen some LCOs that split their customer base into two groups. Half get billed mid month and the other half at the end of the month. It should help with cash flow.

[edger]

I bill on the 1st of each month. Try to get an email address so you can save time and postage. 75% of my accounts use email. It's also a nice way to communicate when customers are out of town.

In this day and time just about everyone and their brother has a PC. Its nice to get phone calls buts even better when you get emails asking for more work.

Have you looked into paypal invoicing?

Yes I have this offer on my invoices. I also charge my client a little extra to use paypal. There is a small fee to use paypal but well worth it for both myself and the client.

Oh my invoices go out on the first and due by the 15th.

[The Professional]

first of the month and mid month billing, something i will think about.

i am also looking into taking credit cards. does this work well for anybody? what percent of customers do it?

Also, do any of you give the customer a direct deposit option? direct deposit would work well with the following option.

And does anybody take the years service, and divide it up so they pay a smaller amount but year round instead of just the time of year when you do the service? (you mow 6 months, they pay 1/2 the price for 12 months) 26 cuts over 52 weeks. just have them sign a years contract. i have thought about seeing if people would like this option. then you would have cash flow in the off-season. just a thought. let me know what you think.

[Elwood]

I would not do direct deposit, but CC acceptance is a very simple and useful tool. I recommend it.

As for year 'round contracts, winter "income" is great, but you must be a very good money manager. In the spring when expenses are very high, you had better have deep pockets because the money flowing in may not match the money flowing out.

Being a VERY GOOD money manager makes this work well.

[Littleriver1]

I have accounts that pay 12 times a year. There are a lot of things that can go wrong. I don't recomend it. You need to really know who your dealing with. I'm not into credit cards. Too many people have their fingers in that pie. I get the checks, the checks go to the bank and I can manage that just fine. The turn around on checks these days is nothing. If you are living on day to day cash flow, your in trouble.

[RRS]

IMO 12 month accounts are the only way to go for maintenance. That's all I'll take anymore. I wish everyone would do the same then we'd all get paid the entire year.

Elwood is right though, shelling out the money for the spring mulch work hits the working capital hard in the beginning of the year. You need to have a nice chunk of change in the bank or line of credit becuase you won't see any profit until the middle of the summer. It sure is nice laying on the couch in January watching those checks role in though!