FWIW, I asked my friend (that works there, that got me the gig, and that I work with when I’m doing stuff for them) if I invoiced at the end of the month if I could expect payment at the beginning of the following month, and he said yes.
Oh, OK, so the Controller of a corporation with subsidiaries in 30 countries is “unprofessional and a little bit desperate” when he asks “do you process payments every working day or only on specific days?”.
Seriously?
When do you think it will be a good time to ask? Ask now, and that way you can calendarize your expected income.
ETA: Ok, so you did ask. I’m not sure whether I should smack me or you… swings wet trout wildly
No, I don’t think that a Finance person asking Finance questions is “unprofessional and a little bit desperate”, but in my case I think it would come off that way. The context and circumstances mean everything.
For what it’s worth, I think it comes off unprofessional to not ask. But not desperate. I also think you should put payment terms on your invoices.
You’re funny.
I agree about putting the terms on my invoices, and I will next billing cycle.
Net 30 means that in 30 days you can call and ask why you haven’t been paid. You’ll be told that since 30 days have passed the bill will be submitted to accounts payable. In a week or two AP will process the bill and set a payment date for the next scheduled payment date based on approval by management. When that payment date arrives (perhaps another 30 days) management will have some questions about the work performed and payment will be rescheduled after those concerns are addressed. When that is done the next payment date will be scheduled again, probably another 30 days, and when that day arrives you can call and ask where your money is and you’ll be told checks are cut on some upcoming date (don’t worry, it’s probably only around 15 more days now). The check will be cut but not sent out until you call again. Expect another 10 - 15 days for the check to actually be mailed. So maybe after 90-100 days you’ll get paid.
Okay, so it’s not always that bad. But if you’re going to be in business for yourself you should be prepared for payment to take much longer than the terms specify. Defaults are rare, late payments are common.
Sadly, your narrative sounds all too possible. I just hope I get my first check before XMas.
We need a “fretful” smilie.
One thing you need to learn when you either work for yourself or set up a company is that financial people, accounting departments and banks, etc., have very frank conversations about such things as payment conditions. There is absolutely nothing unprofessional about asking for clarification. People always say things such as “Normally, we do this, but what does your company do?”
What do I do, depends on how much money is in the bank, if we’re not rolling
in cash, we try and get it there a bit before day 30, if we are broke, we weigh our
options, if we are rolling in cash that month, we just pay it the next time normal
bills are going out.
I have noticed that companies with actual bean counters seem to think it is
a fantastic and wonderful thing to pay bills late(the bean counters). They love to
argue with vendors how terms should be extended or you’ve already been paid enough this year, even though you are still doing work.
Douche bag idiots in polyester shirts sitting behind a desk, never getting their
hands dirty have no idea that by playing out their little fantasy of power by not paying vendors (or a bank account temporarily full of cash), they are screwing over their own company with higher prices and longer lead times.
Some customers make sure the payment is there on the 30th day, some send it out on the 30th day. I/we personally try to get it there on the 30th day, but don’t feel all that bad if its only post marked on the 30th day.
Depending on how far away they are, assume they are sending it on the 30th day, then wait a few, give it another day, and then call. It is a new “customer” for you. No need to aggravate them.
As others have said, please don’t call before the invoice is even due - that annoys the Accounts Payable people. Finding out how they handle payments is fair ball, though - most companies do cheque runs, and those can be weekly or bi-weekly or monthly (or something else). Your invoice is likely to get paid on the cheque run closest to your due date. In a really small company, they might be doing manual cheques as they come in. In that case, they might cut your cheque right away, or they might wait until closer to your due date.
Remember that it takes a couple of days for the cheque to make it through the mail, too.
ETA: The AP person is probably the person you’d be talking to, but they aren’t always the final decision-makers. Often they have to submit a list of payments that have to be approved by their manager.
As a small business owner who deals with major corporations (Universities and a company with a mouse as a mascot) I can say this is absolutely true. I submitted an invoice on 8/24 and am still waiting payment.
I usually schedule the payment online to coincide with my next pay period.
If I can’t pay the bill online (like my lawn guy) I try to write a check that weekend.
When I had a lawn guy, I begged him to get a Paypal account so I could pay him without writing and mailing a check.
They keep asking me to give them a credit card number and they’ll just bill that - but I don’t want an automatic bill being charged to it each month.
I worked with a guy who did taxes for a huge corporation on a contract basis - his contact with the company was my sister, who was able to make sure that his invoices were paid promptly, rather than getting lost in the boxes and boxes of invoices that were due for processing.
My company is an 800-lb gorilla so our official policy (written into our vendor contracts) is 45 days. For my personal finance I try to pay by the last due date.
Update…
I invoiced my client on 10/26 but have not received payment. I just called them and spoke to someone in AP. “Yes” she says, “I have it right here. I just need a signature. I’ll put a bug in the Treasurer’s ear and let him know you need it. Hopefully we’ll get it out to you this week.”
Heh.
And the Dance begins…
That’s exactly what I was thinking, too. But it has a happy ending - I got a text message from my friend that works there last night around 5:00. We have a lunch meeting tomorrow with a vendor. He has my check and asked me if I’d like him to bring it to the meeting (or mail it). Cha-CHING!
Looks like my wife and kids are going to get a Christmas present from me, after all.
Congrats! You win! It’s also a sign that you did a good job and more work from this client may be headed your way.