Janitorial Service Business Tips: No Receivables Problems

Wouldn’t it be nice if we lived in a world where there were no money problems? Where everyone paid promptly and in full?

Unfortunately, we don’t.

While there isn’t any practical way to avoid 100% of receivable problems in your commercial cleaning business, there are ways to avoid them or to keep them from escalating.

Be Clear Upfront

The number one thing you can do to avoid collection problems is to have a standard policy that you clearly communicate to each client before signing a contract for a project or recurring service.

One policy is to require a certain amount upfront. Explain to your client that one way you keep you prices low is by not having many loans. You’re able to pass those savings on to your customer. Because of that, you require part of the contract amount upfront to pay for the necessary supplies and labor.

If it’s a one-time project, you require a percent of the estimate (perhaps 10% - 30%). If it’s a recurring monthly project, you can prorate the invoice for the first month, and request the full amount for each month’s service at the beginning of that month.

Whatever your policy is, be crystal clear about it to your client and have it in writing.

Monitor Accounts Receivables

If you’ll regularly monitor your accounts receivables, you’ll can catch issues before they turn into real problems. Sometimes there’s human error - the client forgot to mail the check. Sometimes there’s a client issue - you’re not fulfilling your contract and they want to get your attention.

Whatever the case, you’ll find it much easier to tackle the problem immediately. If you only review invoices once a month, you may already be weeks behind before you realize it. That means weeks of expenses piling up and no income to pay for it.

Communicate Clearly

You can’t afford to assume that the check will eventually arrive in the mail. If your client hasn’t fulfilled their end of the bargain when it comes to paying their invoice, address it immediately.

You don’t have to be rude or aggressive - you just need to have clear communication so both of you understand the issue. By communicating with you client immediately, you can both figure out what went wrong and how to avoid it in the future. Make sure you both agree to the solution. Then, send an email to make sure you understood what you agreed to (and to have a paper trail, should the problem escalate).

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