Plumbers are constantly running from one job to the next, leaving little time for the clerical side of running their business. However, you need to make sure you’re not overlooking the importance of financial management.
Far too many aspiring plumbers run into the trap of chasing the next job without remembering to bill the last client. This can lead to a mess in your cash flow cycle. So, how often do plumbers bill?
There are far too many moving pieces to give you a one size fits all answer for the optimal plumber billing frequency. The complexity of the specific job, the duration of the project, your cash flow needs, the client’s preferences, and more all play a role here.
That being said, our advice is to bill every time you handle a single job - and for ongoing projects, we suggest weekly or bi-weekly billing. There may be instances where monthly invoicing makes sense, too.
No matter the invoicing frequency you decide on, we invite you to streamline your financial management with InvoiceSherpa, the #1 plumbing invoicing software for helping you get paid faster with less work and stress. See firsthand how it can elevate your company today!
Just as with how to price plumbing jobs, there are quite a few factors at play when determining how often you should bill your clients. We’ll unpack all these below to help you get a clear understanding of the optimal plumber invoicing frequency.
Emergency repairs, such as fixing a burst pipe or clearing a blocked drain, typically require immediate payment or billing upon job completion.
These are one-time, high-priority tasks that necessitate a quick turnaround in the service, and you should expect the same in return from the customer when it comes to payment.
On the other hand, larger, more complex projects like bathroom remodels or new plumbing installations, might be better suited to staggered billing throughout the project duration. For example, you could issue invoices at various milestones of the work.
So, think about the work you’re doing and whether it makes sense to settle payment all at once or schedule it based on the completion of certain tasks. For example, you might want to break up payments throughout phases like rough-in, final installations, or after inspections.
Another reason we can’t necessarily give a standardized answer for how often you should bill your clients is that we don’t know your cash flow needs. A plumber who doesn’t have any stress about cash flow (lucky them!) may be more lenient in their payment terms.
In contrast, the vast majority of plumbers have their own debt obligations to fulfill and will need to bill more frequently as a result. This could justify immediate, bi-weekly, or monthly billing.
Your client may express their desire to be billed all at once or break up the project into smaller, more manageable payments. Clear communication and agreements established at the outset of a project will keep both parties aligned on the billing schedule.
All that being said, how often do plumbers bill? If we had to give you a single answer, it would be this - as early and often as possible!
Ideally, you’d settle payment at the time of service for one-off jobs. At the very least you should issue the invoice before leaving the customer’s property.
But if you’re taking on a more complicated project that will last multiple weeks or months, it makes more sense to split payments up so that you’re being compensated for work throughout.
The key takeaway is that you can tailor your billing procedures to match your specific needs and the unique tasks you take on. Accounts for the preferences of your clients as well.
However, you should always strive to get paid ASAP. Otherwise, you could end up running into some of the common challenges in plumbing invoicing…
We have a separate guide discussing accounts receivable challenges and how automation can help, but let’s narrow our focus to plumbing billing issues specifically. We want to help you streamline your AR process and avoid many of these.
In talking with plumbers we’ve discovered one of the most pressing issues they deal with is delayed payments. A lot of the time, this is a result of not following the proper plumber billing frequency - and it’s often how cash flow problems start.
If you don’t recognize why cash is important to a plumbing business, think about it like this. You have your own debts you’re obligated to pay to keep your business running - be it employees, purchasing supplies for future jobs, or overhead costs.
Without cash to cover these expenses, you could run into trouble. You also won’t be able to invest in growth opportunities. This is a more concentrated issue for smaller plumbing businesses, where the margin for delayed income is narrow.
In response, you may find yourself constantly sending out overdue invoice reminder emails, calling clients to inquire about payment, or worse - dealing with unbilled accounts receivable piling up and being forced to send a bill to collections.
Manual invoicing is prone to errors that can disrupt the billing process - be it incorrect calculations, inaccurate data entry, or missing information. All of this can lead to disputes, delays in payment, and a lack of trust with clients.
Inaccuracies in invoicing can also result in lost revenue if undercharges occur or in client dissatisfaction if overcharges are made. Neither of these are acceptable outcomes.
Actually managing your invoicing process can be a massive time suck - one that prevents you from getting more jobs done or focusing on growing the business.
Preparing invoices, tracking payments, managing accounts, and following up on unpaid bills are all time-consuming activities that divert attention from core business functions.
This not only reduces operational efficiency but can lead to burnout as you struggle to balance the demands of running a business with the need to manage billing processes effectively.
Let’s face it - you didn’t get into this line of work to play around with spreadsheets or chase clients down. That’s why it’s well worth learning how to automate accounts receivable.
Wait - what is AR automation software, and what are the accounts receivable automation benefits? We’ll explain why you should invest in a billing automation system below along with more accounting tips to avoid the hassle and headache of traditional plumber billing processes.
It matters less how often you bill your clients, and more that you’re being clear and consistent from the start.
Our plumber invoice template can help you navigate this, as it lays out the payment due date, accepted payment methods, and any penalties for late payments within the contract or service agreement.
This way, there are no misunderstandings or discrepancies between you and the client when it comes time to pony up payment. Worst case scenario if issues do arise, you can point back to the written agreement in place. This allows you to justify the maximum invoice late fees by state!
One of the best things you can do as a business owner is take accounts receivable off your to-do list ASAP. But, hiring a full-time employee probably doesn’t make sense. Outsourcing to AR management services can be really expensive too.
That’s why you should invest in AR automation software instead. This is one of the best ways to get invoices paid faster, all while saving time and stress, reducing billing errors, and improving client relationships.
The accounts receivable automation solution costs are just a fraction of what you’d pay to hire an employee or outsource. It’s well worth the investment - you just need to get the BEST accounts receivable automation software. That’s where InvoiceSherpa comes in.
Our automated invoicing system is perfect for plumbers who are looking to remove themselves from the monotonous process of managing invoices.
From sending out invoices to following up with clients via email or SMS, and even accounts receivable reconciliation - every step of your billing cycle can be automated.
It’s also the best way to set up recurring payments if you have clients on retainer or are trying to set up payment plans for more complex, long-winded projects. You can present your customers with a variety of ways to pay, be it credit card or ACH.
The system integrates with Quickbooks, Xero, Clio, PayPal, Stripe, and more - so no matter what technology your business relies on, you can get connected in just a few clicks.
We encourage you to learn more about the accounts receivable automation use cases or accounts receivable automation best practices and then, start your free trial with InvoiceSherpa to see firsthand how it can enhance your business. What do you have to lose?
So, how often do plumbers bill? Hopefully this guide has left you with a clear understanding of the importance of proper plumber billing frequency and the best practices for this specific industry.
Whether you're billing after each job or setting up recurring invoices for ongoing maintenance, establishing clear payment terms and optimizing your billing cycle is essential to maintaining steady cash flow.
InvoiceSherpa can help you with this so you can spend less time stressing and chasing down payments, and more time doing what you do best.
You can find additional resources in our blog like how to find accounts receivable, forecasting accounts receivable, strong demand letter for payment, late fee policy template, and more.
At this point, though, it’s time to take the first step toward automating your billing cycle with InvoiceSherpa. Don’t let unpaid invoices slow you down, speed up your cash flow today!
Posted on September 3, 2024
