Create an Invoice for Cleaning Services for Businesses Easily

Invoice for cleaning services for businesses

on this video I'm going to show you how to get paid and how to invoice for your cleaning business and not only that but if you stay until the end of the video I'm going to show you my pricing formula so you can price your cleaning services correctly I'm going to go over methods of payments and how to get paid faster so you don't have to wait 30 days to get paid for your commercial cleaning services and before I mention everything I know about invoicing ongoing commercial cont contracts is that this information only applies to ongoing commercial contracts and let's talk about the first point and that is invoicing the clients every four weeks instead of monthly and I like to invoice the clients every four weeks because number one whenever you tell someone monthly they always think it's four weeks but in reality a month has 4.33 weeks in a month so whenever we have the weekly total we have to time stop by 4.33 to get the monthly estimate but when a client is doing the calculation they're going to take that number and they're going to divide that by four so our weekly total will seem a lot higher than what it actually is and I lost hundreds of thousands of dollars because in my first few years I always used to invoice the client once a month and there was a contract where the invoice was coming around 8700 9,000 is after a few years the client realized it's like oh wow we're almost SP spending almost $110,000 for cleaning services and they started getting different quotes and I lost that contract but if I would have invoiced them every 4 weeks the invoice would have been around 7,000 something it would have been a much better option compared to paying almost 9,000 but it would have been the same amount but when we invoice them every 4 weeks we get to invoice them 13 times a year so by splitting the payments more frequently every payment seems a lot smaller in perspective and the second reason is that when you invoice them every 4 weeks you get to invoice them more frequently so you get paid a little bit faster and the last reason why I like this is that whenever they're comparing different estimates you seem very competitive because everyone else is pricing monthly and you're pricing every 4 weeks most people automatically think that is the same thing but it's not and now I want to talk about what is net3 what is net 10 net 15 and net 30 means that the client has 30 days to pay after you send the invoice and I see a lot of residential people out there saying you can get paid up front stuff like that but that's more towards residential or a small commercial accounts but when it comes to the big corporate cleaning contracts that pay thousands every month the standard is usually net 30 and sure you can negotiate net 20 net 15 Net 10 but that is going to going to put you at a disadvantage compared to someone else who does Net 30 who is willing to wait 30 days to get paid so sure you can negotiate whatever terms you want it's your business but the standard in commercial accounts is net 30 but we don't want to wait 30 days to get paid that's too long especially when we have to pay the cleaners so what I like to do is I send the invoice right away as soon as we start working we send the invoice right away so we get paid at the end of the month and I see a lot of people complaining about net 30 and that is because you're sending the invoice at the end of the month when you finish working when you should be sending it in the beginning of the month and just like that you're going to get paid 30 days faster and that leads me to my third point is always being cash flow positive if you have to pay cleaners and you haven't gotten paid yourself that is going to create a negative cash flow in your business you're going to be stressing out having to touch your savings in order to pay the cleaners and waiting to get paid but the trick is to always be cash flow positive get paid first and then you pay the cleaner and how do we do that so we send the invoice right away within 5 days of working and what I like to do is I like to hire subcontractors instead of hourly cleaners and there's a lot of benefits to hiring contractors it's the same individuals it's just how we pay them in instead of doing all these deductions we simply pay them a fixed amount for the contract every month without any deductions and they simply send us an invoice once a month and we write that off as a business expense so I like to pay my subcontractors monthly so let's say we send the invoice right away you know we're going to get paid around the 30th and the subcontractor is going to send me the invoice around the 30 at 31st with net 12 terms meaning that I have 12 days to pay them after they give me the invoice so that allows me to get paid first and then I have to pay them within a week and a half later so I'm always casual positive this is very important guys always get paid first and then pay the contractor but make sure that they understand those terms because if you have hourly cleaners you're going to have to pay them every 2 weeks and that is when you're going to have a twoe gap between paying them and getting paid so this only works if you're using subcontractors and now let's talk about the methods of payments and there's going to be multiple methods of payments ideally you want to get paid with a direct wire transfer a wire transfer that goes directly to your bank account and there's a lot of clients out there that will mail you the check like a physical check to your address but me personally I don't like that because it can take several days to arrive it can get lost in the mail you have to check your mail often to see when you got the check and when you get the check there's usually several business days for the check to clear so ideally we want to get paid with a direct wire transfer and these two methods of payments are usually for the very large accounts for smaller accounts I simply like to get paid with a credit card so whenever I send an invoice to a client that's under $1,000 a month I simply tell them that they can pay with a credit card but that is going to charge 3% processing fees so it's going to take 3% out of my Prof Prof it unless I tell the client to cover that and we just simply charge 3% on the invoice but usually when they pay with a credit card they can pay directly from the invoice using a card and you have to set up stripe with your invoice platform and for the smaller accounts or mediumsized accounts you can honestly do any method of payment and with smaller accounts if you're in Canada you can get paid with each transfer or if you're in the US you can use cell to get paid but this is only for these smaller accounts for the bigger accounts they're going to be a little bit more professional and they're either going to send you a check or a direct wire transfer directly to your bank and by the way guys if you guys are doing onetime jobs or little residential projects here and there you can use any method of payment Cash venmo Cash app e transfer sale you can even do crypto if you wanted so don't worry too much about this with smaller accounts and now let's talk about who pays us so whenever we get a commercial client there's usually going to be a person that we stay in communication directly so whenever there's complaints or basic communication going back and forth we're going to talk directly to that one person from that company but what I like to do is whenever I get a commercial contract I ask who is the person that's going to be paying us who is the Finance person accountant that's going to be in charge of paying the invoices so whenever we get a new contract I specifically ask for the person in charge of the payments so so that way whenever we have to bother them for the payments I have to only bother one person and we're not bothering the decision maker who hired us and I like to do this simply just to not bother the main decision maker just to keep the client happy and if they stay happy they can stay with us for many years another point I want to go over is what do we do when these payments are overdue so we can charge a little interest on the over two invoices but don't worry about commercial accounts not paying you usually they always pay because these are established businesses usually whenever I dealt with clients not wanting to pay was always in the residential side when I started cleaning before I had any commercial contracts I only ran into clients not wanting to pay on the residential side but when it came to the commercial side usually they always paid but sometimes they take their time so that's when we can charge a little interest on the overdue invoices but a lot of clients will straight up reject the interest and but sometimes we have to be a little patient because even though they take their time sometimes or let's say they only do payment runs every two weeks or maybe the accounts payable person the finance person is on vacation or something we don't want to harass the client and we can send them reminders but we cannot bother them so much so we don't put any tension on the relationship remember guys as a cleaning business the client is always right yeah even if they're playing us for something unrelated we just have to do anything possible to keep them happy because having good customer service will go a long way into the future and now the final part about sending invoices is using the right platform so I like to use wave apps which is completely free there's also QuickBooks but that has a subscription I personally like wave apps because it's free and you can send automatic invoices every 4 weeks or once a month or weekly clients can pay directly in the invoice because you can set up your card details and get paid with a credit card you can also set up Auto reminders so if someone's overdue by 3 days it's going to automatically send them a auto reminder to their email or 14 days later you can write a little description on the invoices and whenever you get paid you simply go on in the app and you mark it us paid very simple guys I know I'm not showing you the platform on this video but simply just go to wave apps and it's very easy to navigate and use the platform it's like using Facebook very easy it will take 5 minutes to learn and that platform also does the accounting and everything you need to run the business and send invoices correctly and when you put it on autopilot you don't have to send invoices manually every month it sends automatically all you have to do is just keep track of when you get paid so you go to the app and you mark it as got paid so you can keep track of of clients that paid and the clients that are overdue and there is a lot more to running a commercial cleaning business and if you want to have me as your Mentor get weekly coaching every week get all my systems my lead systems the Marketing Systems my closing process so you can actually close these contracts all the slps the stepbystep points that oneon-one support and basically grow your commercial cleaning business to seven figures done with you I'm going grab your hand and guide you through the process so you can get commercial contracts as fast as possible so if you're currently doing residential cleaning or maybe you have another side business and you want to get your own recurring commercial contracts for yourself it is the best thing you can do imagine building a house by yourself for the first time you're going to make a lot of mistakes that are going to set you back years and tens of thousands of dollars in mistakes and why do that when you can can build it oneon-one with the expert and I have done this with over 200 clients and I have my own cleaning business Mastery cleaning so the best thing you can do in business is work with someone who's already done this it is the best thing you can do guys so if you're interested and you want to join my mentorship program or you want to partner up click below and we'll see you there thank you so much for watching and we'll see you on the next video