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Invoice vs contract

Discussion in 'Business Fundamentals' started by grandview, Feb 12, 2011.

  1. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    We all had before. This is mostly for dealing with the USM type companies. When you sign a deal with them and they want you to invoice them every month to get your money ,why? You have a deal with them ,it states price,and how many months it to be paid over. So why do they need an invoice? It should be setup at the beginning of the season and a check is cut to you each month. I know, they want to F with you and hold your money!
  2. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    You an answered your question in the last sentence of your posting !!
  3. Stik208

    Stik208 PlowSite.com Addict
    Messages: 1,316

    I believe it is a rhetorical question.
  4. fci

    fci Senior Member
    Messages: 122

    When you call up a company "X" to get paid they say we lost your invoice or insurance please resend. Just a way they hold your money as long as they can. How about when your contract says you are to be paid on the 15 Th of the month. What that means is you should get your check by the 30 Th of the month. 30 day pay means 45 day.
  5. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    There's always a few bad apples, eventually they will only get paid in full option,
  6. Plow Babe

    Plow Babe Senior Member
    Messages: 218

    I may not understand your question.

    Invoicing is standard accounting practice. We have seasonal contracts, and I send invoices each month. In my business experience, almost all companies invoice to get paid. Just scanning my list of payables, even if we have a flat rate agreement to pay someone, they still send me a monthly invoice. Invoicing also makes it easier for me to track and project my receivables, it's just an accounting thing.

    If a customer is going to delay or withhold payment, they will do it regardless of whether or not they have an invoice, they'll find some excuse or other.
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I understand about the invoicing of customers.I just mean more so for maintenance companies. You sign their contact which has the terms of payment. So why can't they just enter the amount of money for x amount of months and the check get cut on the 30-45th day
  8. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    Look at it from the other side. I don't pay bills unless someone send me an invoice. I use to send cheques out without invoices and it was like pulling teeth to get a receipt.
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Yes agree JD. But the check was cashed so would that be good enough as a receipt?
  10. paponte

    paponte Senior Member
    Messages: 717

    I often wonder the same, especially with maintenance like you suggested. One thing that helps me out a bit but is not bulletproof. I offered several payment options to the client one being a season total divided by eight equal payments, due on the first of every month. It clearly states we will not send an invoice. While it works for residential, most commercial clients will NOT pay anything unless they have an invoice... not a statement an invoice. That's another thing that bugs me. Invoice vs. statement.
  11. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    For lawns I offer Full pay, 3 pay, 6 pay. I tack on $12-16 for the 3 payment plan and another $12-16 for the 6. Its all on the contract. and currently I copy the contract and send out as an invoice ( there is "office use only" section at bottom of contract for invoice record)

    For plowing they pay full or twice. Same setup though. 2nd payment is due on my birthday and better not be late. They all get good service no big deal I just send "2nd notice" and write "I didn't get the 2nd check yet"