Avoiding Duplicate Payments: The Tale of Bob the Bad Builder and Sammie the Star

Duplicate payments may sound like a rare fluke, but they’re surprisingly common—and costly—for home builders without strong financial systems. In this post, Jon Markee, your Builder CPA, shares the story of two builders with very different outcomes when it comes to managing payments. One ends up chasing down missing money, while the other builds her business with peace of mind.

Bob’s Disorganized Payment System

Bob the Bad Builder runs a chaotic accounts payable process. One team member pays by credit card, another sends out checks, and no one checks to see if a bill has already been paid. Without a shared system or clear process, duplicate payments are all too easy to miss.

Eventually, one subcontractor receives double payment—once via credit card and again by check. The subcontractor, unaware of the mistake, deposits both and goes on their way. Weeks pass before Bob catches the error, and by then, the funds are unrecoverable.

Sadly, this isn’t a one-time issue. Bob’s business has lost thousands due to duplicate payments and poor financial oversight. His team is constantly reacting to problems instead of preventing them, which creates unnecessary stress and drains resources.

Sammie’s Smart Payment Strategy

Sammie the Star, on the other hand, has built her business on financial consistency. She and her team use a shared system to track all payments. Whether it’s a check or a credit card transaction, everything is logged and reviewed before any money goes out.

Her team knows who’s responsible for payments, what method to use, and how to confirm an invoice hasn’t already been paid. Even when errors do happen, Sammie’s internal controls catch them quickly—before any money is lost.

Vendor Relationships Matter

Bob's vendors aren’t always helpful in catching mistakes. Some don’t even realize they’ve been double paid due to their own disorganized books. Others keep the money without saying a word.

In contrast, Sammie’s vendors know what to expect. They trust her payment process and communicate clearly, making it easy to resolve the rare mistake. Her professionalism builds strong relationships and keeps everyone on the same page.

Key Takeaways:

• Use a Shared System: Track all payments in one place, whether it's checks or credit cards.

• Define Roles Clearly: Make sure everyone knows who handles payments and how.

• Check Before You Pay: Always confirm an invoice hasn’t already been settled before issuing payment.

• Build Safeguards: A well-documented, simple system based on sound financial concepts can prevent costly errors.

• Protect Your Business: Don’t let a disorganized process eat away at your profits and peace of mind.

Conclusion: Duplicate payments may seem like a small issue, but for builders like Bob, they add up fast. Sammie’s story proves that thoughtful systems and clear communication can protect your cash flow, reduce stress, and create a more professional business.

If you’re tired of tracking down missing money, consider tightening your payment process.

As always, Jon Markee, your Builder CPA, is here to help you build a financially strong and organized home building business.