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View Full Version : i need some accting / QB help


jbturf
02-22-2011, 04:19 PM
ok so i have always given all customers due upon reciept terms and
no late fees or finance charges,
i want to change this year and start assessing finance charges
on past due accounts

how do i do this?
i assume i need to provide this info on my invoices somewhere?

what is a good finance charge you all use?
ive read net 30 terms and 1 or 2% interest rate?

btw im in MA, if anyone knows of any state laws that i may need to be
aware of regarding this

thanks for any help
Josh

xclusive
02-22-2011, 05:16 PM
Everyone does things differently. I charge a flat late fee of $10 on accounts 7days past due. I give my clients 15 days to pay. Typically all my clients pay within 30 days. Even though some of them are late I do not give them a late fee. The reason I chose $10 is because I feel they are more likely pay a minimal amount. Just like $5 late fee AT&T and verizon charge people are less likely to argue over it compared to the $29-$39 most credit card companies charge.

eco.lawns
02-22-2011, 05:19 PM
Im doing $10 this year as well. I almost always get paid promptly but I just want to give them that reminder on every invoice

xclusive
02-22-2011, 05:20 PM
ok so i have always given all customers due upon reciept terms and
no late fees or finance charges,
i want to change this year and start assessing finance charges
on past due accounts

how do i do this?
i assume i need to provide this info on my invoices somewhere?
what is a good finance charge you all use?
ive read net 30 terms and 1 or 2% interest rate?

btw im in MA, if anyone knows of any state laws that i may need to be
aware of regarding this

thanks for any help
Josh

At the top menu bar find the customers tab click on that and then it will bring up another menu scroll down to where you see assess finance charge and set it up there.

CLS LLC
02-22-2011, 05:25 PM
In most states as far as I know 18% (or 1.5% per month) is the maximum you can legally charge. That means technically in most cases you can't do a $10 late fee unless it is a large bill. I have it in all my service agreements that a late fee will be charged. But I have yet to actually use it. Most people will pay eventually. And those one time jobs who do drag their feet are not likely going to pay your late fee anyways. And are you really going to try and take them to court a fee dollar late fee that you probably weren't even legally allowed to charge anyway.

That being said I always put "Net 15" instead of "Due on Receipt" and if I don't receive payment by the end of the month I will mail last months invoice with their currant months invoice with PAST DUE stamped on it. Usually works fine.

xclusive
02-22-2011, 05:51 PM
In most states as far as I know 18% (or 1.5% per month) is the maximum you can legally charge. That means technically in most cases you can't do a $10 late fee unless it is a large bill. I have it in all my service agreements that a late fee will be charged. But I have yet to actually use it. Most people will pay eventually. And those one time jobs who do drag their feet are not likely going to pay your late fee anyways. And are you really going to try and take them to court a fee dollar late fee that you probably weren't even legally allowed to charge anyway.

That being said I always put "Net 15" instead of "Due on Receipt" and if I don't receive payment by the end of the month I will mail last months invoice with their currant months invoice with PAST DUE stamped on it. Usually works fine.

No it is not illegal to charge a $10 late fee at least in NJ. I even double checked with my lawyer.

jbturf
02-22-2011, 08:03 PM
thanks for replies,

so advantage to finance charge is QB will do it automatically for me
every month

but a late fee i have to manually enter each month?

do you guys charging late fees, charge it just once after say 30 days,
or do you charge a late fee each month a customer is past due until they pay?

how do i manually enter a late fee for a single customer?
thanks

xclusive
02-23-2011, 12:59 AM
thanks for replies,

so advantage to finance charge is QB will do it automatically for me
every month

but a late fee i have to manually enter each month?

do you guys charging late fees, charge it just once after say 30 days,
or do you charge a late fee each month a customer is past due until they pay?

how do i manually enter a late fee for a single customer?
thanks

I have only charged it once and had to manually do it, but there is an option to have it happen once an invoice is past due. I cant exactly remember how to do it. You can try the help feature in QB and it will tell you how to do it.

jbturf
03-02-2011, 04:46 PM
thanks,

can some one provide the wording they use on your invoice or contract
to inform customers of late fee?

LB1234
03-02-2011, 07:44 PM
thanks,

can some one provide the wording they use on your invoice or contract
to inform customers of late fee?

your accountant or attorney can provide it and you don't have to worry about the legality of it.

Lux Lawn
03-02-2011, 07:52 PM
Josh, I am charging $10 late fee. I have it posted on the top of the invoice next to the terms. " Avoid $10 late fee" pay my due date.

Most of my invoices are due on the 10th of the month.

jbturf
03-04-2011, 07:13 AM
Thanks Larry,

im thinking of keeping my current due upon reciept terms,
and adding a late fee of $10 for any amount 30 days past due,
and $10 per month there after until amount is payed.

i sent an email to the MA attorney general,
for some insight on this- hopefully she will reply

thanks,
Josh