Late fees and interest

Late fees are off until you switch them on. Only turn them on if your payment terms allow late fees or interest and your customers have been told. SteadyChase asks you to confirm this.

Types

• Flat fee: for example $25, once or repeated every so many days.
• Percentage: a percentage of what's still owed.
• Daily interest: a yearly rate, worked out daily and added every 30 days.

You can set a grace period (days after the due date before any fee), a cap per invoice, and a minimum fee.

What happens in your accounting software

Each fee is a separate invoice that names the original invoice, so your original invoices are never changed. In Xero it's a draft for you to approve. Fees are never charged on fee invoices.

Waiving a fee

Open the invoice in Invoices and click Waive next to the fee. SteadyChase voids the fee invoice in QuickBooks or Xero for you. If the customer has already paid part of the fee, you'll need to refund or credit it in your accounting software instead.

In the US, the rules on late fees vary by state. If you're unsure, check with your accountant before switching fees on.

Fee invoices are added without sales tax or GST, so the customer is charged exactly the fee shown. If your accountant says tax applies to your late fees, adjust the fee invoice in your accounting software.