Garry I understand your sentiments about 30 and 40 day nets. I’ve had some of those in the past and never liked it either, although I did keep the accounts. I made sure to have a contract and stipulate the net and a late fee beyond the net. I think it’s hard for us to relate because I imagine most window cleaners use a cash based accounting where income is counted when your receive payment. Corporate business uses accrual based accounting where income is recorded in the books when it is earned and not necessarily received. For chain stored cash flow can be an issue and a buffer is needed. I’m sure it takes time as well to receive the reporting of the books from each location and then organize a payout of expenses. I don’t know that for certain as I have never worked in coporate but it would seem to make sense in my estimation.
It’s one thing to spend time collecting a bigger number, but every time you have to touch a $25 invoice, you pretty much lose money on the job. I just made my second inquiry on a $40 dollar job at an orthodontist office. Supposed to be cash or check upon completion. I’m sure I will get the money, but it’s not worth the aggravation.
On top of that, I just binge watched Season 3 of the Sopranos over the weekend, and now I’m having visions of walking in there with a smoke hanging from my lips, pistol whipping the office manger, and taking his wallet and watch. Kicking 10% up to the Boss, of course.
You should be using quick books
^This.
If you can dictate when you want your payment then all the power to ya.
I always thought that was just the way it is with commercial/corporate
So to me I just got use to it. An my train of thought was I want my check in 30 days. If I don’t get it them I out a phone call to see if the check was sent .
I just looked at my AR. All net 30s have one open invoice as long as it’s one I’m good.
The funny thing is they all get sent out the first of the month I do all my billing the first of the month. Lol. So if I do a job on the 15th it gets sent out the 1st.
Whatever it works for me
I have heard people complain of 60 or more days and still no payment because of billing cycles or some other crap. I look at it like this. You agree to buy a widget. Doesn’t matter if that widget is a stick of gum or an all day labor intensive job, you agree to buy it. Then you sit back comfortably enjoying your(?) widget and don’t intend to pay because your policy says you don’t? pbbbb. Someone like me comes along and says my unpaid widget policy is 10% per day based on principal of refusal to pay in a timely fashion. Obviously I don’t agree with “Net Whenever”…LOL… These same folks do not wait 30, 60, or 80 days to get paid for their job, do they?
Cool !!! Get QB for dummies an get on
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