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  • Do you bill monthly?

    If you have contract customers, do you bill them monthly? and if so, do you ever bill for the previous months cuts or are they always billed and paid prior to cutting?

    I was thinking for customers who sign at least a 3 month contract, that I would bill them at the end of the month and have it due by the 10th of the next month. Too risky?

  • #2
    I bill monthly my customers pay after work is performed

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    • #3
      We bill monthly. If its 4 cuts, bill is sent day of 2nd cut and due day after 4th cut (if 5 cuts then its 3rd and 5th cuts). If payment not received by day before the 1st cut of next month we stop until payment is received.
      Evansville Lawn Mowing
      Newburgh Lawn Care

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      • #4
        For me it depends on when the agreement is started. For example, if someone signs an agreement started today then April 5th, will be the next invoice date and they have 15 days to pay or they receive a late payment and work ceases until they pay.

        Matt

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        • #5
          For those who bill monthly, do you do so for ALL customers, or are there some who WANT to pay you at the time of service, or perhaps even send you a check without ever getting a bill?

          Curious, as I haven't figured out how to handle this part yet, and spring is about here!
          I'm used to people being home when I do work and they pay before i leave.

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          • #6
            The only billing I usually do is my commercials. I collect the residentials as they get serviced.
            http://www.lunchesruslawncare.com

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            • #7
              I billed monthly when I ran my business. The 30th of every month, I'd send invoices out and state that the "Due Date" was the 15th. This was billed once work was done. You are taking a risk I suppose doing this but you can usually tell what you are getting into. If you don't feel right about it, require prepayment.

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              • #8
                Yes, some people can't stand to let me leave without paying. Actually, it's more work. 4-5 payments per month to record instead of one. I can't complain though.
                That's sort of what I was wondering... does it make things too complicated if some people want to pay "now" as opposed to waiting?

                I'd imagine "monthly" would work very well for a "contract" client, but how about "one time" customers - say a hedge cutting job - do you bill them at the end of the month as well, or is that a "take it as soon as you can get it" situation?

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                • #9
                  I have gone to billing the month in advance. It seems to be working out well for me. I send out invoices on the first and due by the 15th of the month. Customers haven't complained one bit.

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                  • #10
                    I'm afraid of asking a new contract client to pay for a month in advance when they know nothing about me or my company. But I also don't want to have to try to collect (for the previous months service) from people who have a hard time paying.
                    One time services need to pay at the time the service is completed.
                    I appreciate all the info.

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                    • #11
                      I send my bills every 15th and 30th of the month. I also give them 15 days to pay, after that we stop service

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                      • #12
                        If you have contract customers, do you bill them monthly? and if so, do you ever bill for the previous months cuts or are they always billed and paid prior to cutting?

                        I was thinking for customers who sign at least a 3 month contract, that I would bill them at the end of the month and have it due by the 10th of the next month. Too risky?
                        I think monthly is good for the down economy.

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                        • #13
                          I bill on the first of each month for that months service, with payment to be made by the 15th of the month. It has worked out very well and I am not out a lot of service if a client can't pay. I also have a lot of clients that have insisted on giving me post dated cheques 6 or 12 months advance. I really like that option, never an issue knowing your not getting paid. I've never had a client's cheque bounce, thank goodness for "lil old ladies".

                          For our one time services/clients, they are billed once service is performed and same rules apply ... 14 days to pay. Most of these clients want to pay once your done anyway, so it has never really been much of an issue for me.

                          Lloyd
                          Blue's YardFX
                          Camrose, AB

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                          • #14
                            I've never used a contract but we collect as we mow. It has absolutely saved the spring cash flow issues. When I ran my business years ago, we did the usual billing at the end of the month. Spring was way too expensive for me by doing that (expenses keep adding up until money starts flowing in about 7 weeks later) and I think any new folks in the business NEED to look at keeping cash flow by either collecting the day of the cut or (as some here do), collecting in advance. I even tried billing twice monthly (15th and 30th) but my customers hated it. If our payments / bills crossed in the mail, they were confused and were constantly adjusting what was actually due. We did it for a few months and dropped it.
                            We are 100% pay as you go since last season and it has been a life saver and probably the most positive change our company made.
                            New lawn companies...........you NEED to be able to cash flow your business and customers paying NOW will save you tons of issues.
                            Hope this helps someone out.

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                            • #15
                              All this info is a big help. Probably will collect as service is performed, at least at the beginning.
                              Thanks for all the input.

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