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  #1  
Old 02-22-2011, 04:19 PM
jbturf jbturf is offline
LawnSite Bronze Member
 
Join Date: Sep 2007
Location: groton, MA
Posts: 1,304
i need some accting / QB help

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
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  #2  
Old 02-22-2011, 05:16 PM
xclusive xclusive is offline
LawnSite Senior Member
 
Join Date: Dec 2009
Location: Northern NJ
Posts: 945
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.
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  #3  
Old 02-22-2011, 05:19 PM
eco.lawns's Avatar
eco.lawns eco.lawns is offline
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Join Date: Sep 2010
Location: Springboro, OH
Posts: 183
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
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  #4  
Old 02-22-2011, 05:20 PM
xclusive xclusive is offline
LawnSite Senior Member
 
Join Date: Dec 2009
Location: Northern NJ
Posts: 945
Quote:
Originally Posted by jbturf View Post
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.
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  #5  
Old 02-22-2011, 05:25 PM
CLS LLC's Avatar
CLS LLC CLS LLC is offline
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Join Date: Feb 2008
Location: Colgate, WI
Posts: 375
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.
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  #6  
Old 02-22-2011, 05:51 PM
xclusive xclusive is offline
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Join Date: Dec 2009
Location: Northern NJ
Posts: 945
Quote:
Originally Posted by NicholasMWhite View Post
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.
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  #7  
Old 02-22-2011, 08:03 PM
jbturf jbturf is offline
LawnSite Bronze Member
 
Join Date: Sep 2007
Location: groton, MA
Posts: 1,304
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
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  #8  
Old 02-23-2011, 12:59 AM
xclusive xclusive is offline
LawnSite Senior Member
 
Join Date: Dec 2009
Location: Northern NJ
Posts: 945
Quote:
Originally Posted by jbturf View Post
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.
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  #9  
Old 03-02-2011, 04:46 PM
jbturf jbturf is offline
LawnSite Bronze Member
 
Join Date: Sep 2007
Location: groton, MA
Posts: 1,304
thanks,

can some one provide the wording they use on your invoice or contract
to inform customers of late fee?
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  #10  
Old 03-02-2011, 07:44 PM
LB1234 LB1234 is offline
LawnSite Gold Member
 
Join Date: Dec 2004
Location: Central Jersey
Posts: 3,211
Quote:
Originally Posted by jbturf View Post
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.
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