Taking the Loss

NickfromWI

King of Splices
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Mar 30, 2005
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So if you have a customer NOT pay, people will commonly say "at least you can write it off as a loss!"

What does that actually mean? In accounting you can put something in as an expense, or as income. There isn't another "loss" category.

I've had accountants (plural) tell me that you don't put it as a loss, you just DONT put it as income, which means at the end of the year you won't get charged taxes on that, but that there isn't any sort of secondary bonus deduction that you get to make.

Both arguments make sense. What does the house say?


love
nick
 
Goes into accounts receivable......continually roll over

In other words....bayou got screwed.


How big of amount are we talking here?
 
You've still written off what it cost to do the job. It really is "the least" comfort you can take...
 
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  • #4
Not much. I have had 3 customers over the years that never paid

1- we injected some pines for bark beetle back before I really knew much about injecting. We used Mauget capsules and they didn't uptake. I warned the guy it probably wasn't going to uptake. He decided not to pay. $500

2- some dude didn't like how the dynamic cable looked. Said it should be tighter. Blah blah blah $350 down the drain.
3. Some dude right now is just being a jerk $1,350

In the overall realm, no big whoop. But I'd just like to know how it beat should be handled, accounting wise


love
nick
 
When they don't pay I have my wife call them and they always pay. Her nikname at her last job was "pitbull".
 
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  • #9
So by writing it off we're really saying "well at least you don't have to pay taxes on the income!"


love
nick
 
that sucks nick!!
I only been ripped off once
I know the feeling. You spend all day in there yard busting your ass
doing little extra things to make them happy and bam screwed.
I didn't even want the job I got screwed on,but like you it was a referral from a great customer.
The good customer even called me to say he was sorry for his buddy screwing me..
assholes every where looking to screw someone.
I just wrote it up as a learning experience.
 
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  • #11
That's exactly it. It was one of those things where there were definitely signs ahead of time...looking back on it now... But you forge ahead hoping for the best.

This time, I lost- no matter how I go about it. Even if he pays me in full today I still lose. I've spent hours prepping for the job, mobilizing the troops, then doing cleanup, sending videos to researchers, following up with the client, following up, following up, reminding, and following up. The job is already a huge loss.

Oh well!


love
nick
 
I'm for that line of approach, myself. But you have to be able to carry off the attitude.

For Squish that's easy, plenty of muscle and he has that crazy eyes thing going for him :).

Stig also could be so physically menacing, by size and evident skill at movement that bespeaks the martial arts and attendant ability to damage.

For me...I think I'd just bring M to the confrontation...she's WAY more scary threatening than I can ever be :D.
 
I told a guy, after months of not being paid, that it was no big deal and I figured he would try to not pay me. SO... I told him I saved all his debris and would be happy to bring it back and deliver it to it's rightful owner at the time and place I found convenient.

Also have said, "I'm sorry, but I know longer have a choice and have to just let you deal me with my lawyer. Sorry, she's not all that nice."


Been paid every time so far.



But...... totally screwed myself today. Hemorrhaging money. Rain and snow too. Shitty day.

Hope ya'll are well
 
Here's what you do. Get a boogey man looking friend to drive your lettered truck by their house while they're outside. He slows down to a stop, grins, and gives a little wave. Sits a minute, couple drags on a cig, toot the horn quietly, and drive away slow.

They'll call you quickly.
 
I'm ugly as sin. Truth be told, time to step up and go knock on his door. Tell him you're here for the monies due to your business and he can write a check while you write a paid invoice and you'll be in your way as quick as possible. But he owes some money and the email game didn't seem to convey that. When you knock, knock HARD. Polite to his kids if they answer, a gentleman to his wife, and to him "where's my money?"
 
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