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How to pay the person doing my billing?

Discussion in 'Business Fundamentals' started by Plowtoy, Apr 19, 2013.

  1. Plowtoy

    Plowtoy Senior Member
    Messages: 929

    I have been having the same person doing my billing for several years. I have always paid her a flat rate and am now finding that as my business has gotten smaller, her flat rate is now putting me in the red on light months. My plowing prices (from what I can tell) are higher than the market I work in, but I also take good care of my subs so my costs are higher than my market also.
    I have been brain storming, and think I have come up with a way for next year to pay her and it would give her some incentive to ask more questions when/if she spots any abnormalities in any of my or my subs time sheets. My thought is to pay her $X per each push on each line item we have (meaning if we have 2 pushes on one line item, she would be paid twice). How I would come to the number would be take a heavy month, and divide how much I pay her now by how many pushes we had and that would give me the per push number for next year. I then would also give her a bonus incentive if bills were sent out by the 5th of the month and half of the bonus if sent out by the 10th of the month and no bonus after the 10th so I dont have more months where bills are being sent out until the 18th.
    The other option, is to only take on enough work for myself to do and give up a portion of my accounts that I subcontract out anyway, and do my own billing. The only problem I have with this, is that I would be taking work away from three good friends of mine, and maybe putting a strain on our relationship's.
    Sorry for the long post (again) but I could really use some suggestions on how to change my billing so I can stay in the black. Thanks!!
  2. peteo1

    peteo1 PlowSite.com Addict
    Messages: 1,660

    Pay by the hour and be done with it or do it yourself. One of the many joys of running a business----paperwork and long hours.