Billing and Payment Methods [Archive] - The Limousine Discussion Forum

October 15th, 2001, 10:28 PM

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Limo Insp:
Starting a limo business and would like specifics on how others handle billing for sevices.

Thanks<HR></BLOCKQUOTE>

I am a little unclear here about what you are asking. Do you want to know how actual billing is done (like sending a bill) or do you also want to include credit card processing in there as well? Do you want to know when and how to send bills? I will give you some things here and feel free to go into more depth on things that you are unclear on.

First billing traditionally means actually sending a bill (invoice) to the customer and waiting for a check. Try to avoid this at all times as waiting for your money is painfull. But in some situations (corporate work) you may need to do it.

Lets talk about retail or rare use customers: These are customers that use you once a year for vacation or an anniversary. There is no reason to bill them they should always pay up front with a credit card or check. It will be up to you if you even want to take personal checks, many companies do not unless they get it two weeks ahead of time and have time to cash it and make sure the money is there. Your policy could be we accept checks as long as they are backed up with a credit card that can handle the full charge if need be.

How about Corporate work:
A majority (would you all agree with this?) of companies now a days use corporate procurement cards (credit cards) and each person has one. So the assistant will tell you to charge theirs for their bosses transportation, or you may charge the bosses directly. Either way its a good system as they use your service charge the card after you find out all the expences from the driver and the money is in your account in a couple of days minus the discount fee from the credit card processor. Some may request that you send them a zeroed invoice for thier records.

In some (minority) corporate situations the assistants will insist that an invoice be sent to them and they will cut you a check. This is when you get into the waitng game. In many companies expences are paid on a monthly basis for that previous month. So no matter if you send them 4 diffrent mailings they are all going to get paid at the same time. It's best to get with your clients and find out when the best time to send in the bills is. In some companies they pay expences two times a month 15th and 30th for instance.

As far as generating the bills most limo companies use a software package to do this and keep track of who owes what. If you plan on doing alot of retail work and billing will not be that much initially just have some 2 part half sheet invoices printed up with your companies name on them and keep a file of reservation sheets with the 2nd part (mail them the first part) of the invoice attatched to it on jobs where people owe you money as they pay take them out of your file. Check this file monthly and call on the ones from the previous month that have not paid yet and find out whats UP! Since it seems you are computer savy I would also look at generating invoices using a template in excel or word, may look a little more professional.

In chosing your credit card processor one thing you may want to keep in mind is that you want a processor that does not require you to get a signature from the card holder for every transaction. Many require you to have a signiture on file from the card holder authorizing you to charge the card in the furure. But some have the requirement of a signature every time. Some times the discount rates are diffrent based on this requirement.

Hope this helps, if not it may start some conversation! Please post any more specific questions you have and I am sure someone in here will have some good info for you.

Later!!
Steve Walker
steve@capriceshop.com