Accounts Receivable vs Annual Gross

[NickfromWI]

Nick,

Keep a laptop or tablet with you that can print up an invoice on the spot ..I bet this would get you paid faster.

Nope- that's not the problem. I can guarantee that because this:

...I would like to posit that people tend to pay on the spot at a greater rate in more rural areas than in large cities, and it seems because people in large cities spend a hell of a lot more time away from home.
...

...is 100% true.

For all of our clients except a very tiny handful, email is THE FASTEST way to get invoices to them.

We don't expect them or need them to be home when we do the job. I take a no pressure approach to the invoicing and want to make working with us as easy on people as I can.

I tell them, you give us the thumbs up, we'll take it from there. And that's what we do.

For now- I think we can have a huge reduction in accounts recievables by being better about sending invoice reminders for anyone who doesn't pay 10-14 days after we invoice them.


love
nick

 

[Thor's Hammer]

Nick, have you thought about Card merchanting? That would enable you to take payment over the phone from clients, or on the spot.

 

[treesmith]

Customers who do not pay in full at completion of job (in other words....RIGHT NOW), get put on the other list. That way, the next time they call me, they get a $50 charge added for covering their shenanigans.

 

[NickfromWI]

We take credit card. In 2013 about 20% of our invoices were pd by credit card.


love
nick

 

[treesmith]

I can see that being beneficial in some instances, but I've never needed it. I'd hafta add a 10% fee....

 

[NickfromWI]

I just had a realization that my current AR is more than my salary of my job I quit to start the business. Kinda gives me warm fuzzies to think of it that way!

 

[Pelorus]

Currently waiting for two cheques. In the summer, that changes a bit.
Majority of my work is residential, and majority of that gets paid within a couple of days after completion.