adding tax

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Jul 9, 2017
71
11
8
Real Name
stephanie barber
#1
I don't charge tax but I'd like to update my policy to reflect that the client pays a percentage. what method do you use? I have no idea how to add this to my invoicing. Any examples would be so appreciated. Thanks
 
Last edited:
Nov 27, 2013
17
20
3
Honolulu, HI
cleancarpetrx.com
Real Name
Stephen Stewart
Business Location
United States
#2
The industry seems to be split passionately about this issue. That been said most customers these days expect to be able to use a CC without incurring additional fees. Think about the purchases you make day to day, gas, restaurants, supplies, advertising, etc., rarely is there a price difference if you pay cash or check. This may not be the case in large purchases with contractors & suppliers.

Our business along with many others that I consult for will consider adding a charge for jobs over $5000.00 or large contracted clients that want to start paying their long standing monthly service fee with a credit card.

A year ago I received a call from a large theater chain’s (rhymes with beagle) payment service saying that they are no longer going to be sending checks, all payments will be made by a corporate card. That contract is for 4 locations and is ~$30K per month. Thankfully in our service contract we have a clause that we can pass on CC fees, bounce fees, etc. They are still sending checks.

We advise to calculate your job cost to include 50-60% of your residential clients will pay with card. Your margins should be high enough that $20 on a ~$900 job is nothing. On that $30K Cinema contract we are at a 52% margin, or $15,600. If they pushed back enough where we believe they would look else where I would said “We will make an exception for you”.

Keep your margins high, provide excellent service, and don’t sweat the small stuff. Convenience is what customers want and will pay for it.

On a final note when customers as for cash discounts, all of our techs/supervisors/CSRs are trained to say

“I apologize sir/ma’am we do not offer a discount for cash. You can pay with whatever method is most convenient for you. However cash or check helps us save money on CC fees, but we documented all income for insurance & tax purposes.” 90% of our return customer start paying by check.
 

longkenn

Well-Known Member
May 7, 2011
4,792
2,232
113
Winston-Salem, North Carolina
www.sunbreezeclean.com
Real Name
Kenneth Long
Business Location
United States
#3
Does your state tax services? If it does then you may be required to charge sales taxes and remit the sales tax revenue to your state. It varies from state to state so you will need to check with your revenue department in your state.
 
Dec 3, 2012
8,383
3,685
113
Pa
Real Name
Nick
Business Location
United States
#4
Does your state tax services? If it does then you may be required to charge sales taxes and remit the sales tax revenue to your state. It varies from state to state so you will need to check with your revenue department in your state.
Yep. And some states have odd tax laws regarding services cleaning, different types of cleaning, what is being cleaned, maintenance, type of maintenance... pumpkins for eating not taxed same pumpkins but being cut for ornamental purposes are taxed.???
ok i went a lil to far in the crazy keystone state sales tax list.
 

Common janitor

Well-Known Member
Apr 5, 2014
3,215
2,269
113
63
Real Name
Ed Feil
#5
Yep. And some states have odd tax laws regarding services cleaning, different types of cleaning, what is being cleaned, maintenance, type of maintenance... pumpkins for eating not taxed same pumpkins but being cut for ornamental purposes are taxed.???
ok i went a lil to far in the crazy keystone state sales tax list.
Yeah , I finally asked the accountant because it's about as clear as muddy water from my waste tank !! She's the one with the degree and I'm taking her word for it !! Lol .
Pa. got some crazy laws for sure !!
All the Best , Ed