Where are late fees?

rtisdalertisdale Member Posts: 2

See title. Automated late fees are a pretty fundamental feature of a invoicing/billing application.

This has been brought up before and it still hasn't been implemented.

When will this be in the application? It's a major oversight

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  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @rtisdale,

    There are currently no feature in Wave to automatically handle late fees. You can modify your invoices after they've been sent to add a fee like this. The invoice link in email sent to your client will even update automatically to match.

    Could you tell us a bit more about your own needs in regards to late fees? What industry do you work in? Do you often find yourself having to charge a late fee to your client? What's the fee structure you use for those fees? The more information you can give us, the best we'll be able to understand your needs and assess the kind of impact that a feature like this one would have on our users.

  • rtisdalertisdale Member Posts: 2

    Howdy @Alexia. I know it's not there but it seems a major oversight by the development and project management team.

    What industry do you work in?

    I'm in Information Technology (Consulting and implementation) but I don't think the field is particularly relevant here.

    Do you often find yourself having to charge a late fee to your client?

    Not often but when I do it's almost never a pleasurable experience due to how the client responds and due to the fact it's a time consuming and error prone process (Because there is no automation)

    What's the fee structure you use for those fees?

    Directly from my contract

    LATE PAYMENT. A payment is considered late when time has

    elapsed outside the period defined in the section named “TERMS”.
    Any balance past due is subject to an additional 2.5% fee as applied
    to the remaining balance, compounded each net term. The fee may
    be applied toward the balance of future work as long as this clause is
    not abused. The Client will be responsible for any costs associated
    with collecting amounts due to the Consultant.

    In English: On the day of the late payment you will have a 2.5% fee applied. Every 15 days (My net term) you will have 2.5% late fee compounded until payment it made.

    I imagine many people use a similar percentage based structure.

    This is an easy feature to implement

    Is the invoice overdue? Apply X% fee.

    Continue to apply they fee each net term (Or a variable term) until the invoice is paid.

    **Here is why I think it's an issue: **

    The client sees I manually add a late fee (even if it's stated in my contract) and they feel unhappy. A human applied the late fee. A human they will blame and be angry with.

    Automated late fees seem to take away some of that friction (as well as save time and reduce errors).

    A person doesn't manually apply the late fee, it's simply applied automatically by the software (As outlined in my contract) if the invoice remains unpaid by the client.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Thank you for taking the time to answer my questions so completely, @rtisdale! This is incredibly helpful. I'll pass your comments along to our product team.

  • ZeldaZelda Member Posts: 10

    Yes! Please add this feature. It would make it so much easier to assess a late fee and prompt timely payments.

  • ZeldaZelda Member Posts: 10

    I conduct a choir, and give the option for monthly payments.

    This looks to be helpful:

    "Once you know what the maximum annual interest rate you can charge is, work out the monthly finance charge. Just divide the state’s max. by 12. For example, if the rate is 18%, the monthly finance charge is 1.5% (18/12). On a $5000 invoice that is 30 days late, a penalty of $75 ($5000×0.015) applies.

    Let’s also assume that the payment is 15 days late. It becomes a little different. Then you can calculate the charge by dividing 15/365, multiplying by 18%, and then by the total on the invoice. It gives you roughly $37."

    It would be lovely to have automatic options. I would charge 1%.

  • JamieDJamieD Administrator Posts: 1,117 admin

    Hey @Zelda. Appreciate the feedback that you've given us here. We still don't have any immediate plans/timetable as to when this would be available to our users, but it could be something that we implement in the future.

  • MrMikeMrMike Member Posts: 2

    In the absence of a "late" fee, are there any other ways to adjust a price based on a date?

  • ChelseaKChelseaK Administrator Posts: 264 admin

    @MrMike Not automatically! Just getting creative here...a workaround could be to add a note on the invoice letting your customer know that there will be late fee applied to their next invoice if they don't pay the present invoice on time. In order to create your own late fee, you can head to Sales > Products and Services, add a new 'Late Fee' product so you can then add it as a line item on a future invoice.

  • MrMikeMrMike Member Posts: 2

    Thank you for the suggestion.

  • N_DavaineN_Davaine Member Posts: 1

    This would be a great feature. Especially if we can set a % or hard value to include after day 14 etc. Currently there is no more automated communication after the 14 day that I have noticed.

  • ChelseyChelsey Member Posts: 2

    Can you advise. With your suggestions to "create your own late fee, you can head to Sales > Products and Services, add a new 'Late Fee' product so you can then add it as a line item on a future invoice." if the late fee is for example 2.5 % of the sale and every 15 days a 2.5 % late fee will be compounded. What would be the most efficient way to change the late fee amount to fit the sale?

  • AlexLAlexL Administrator Posts: 1,118 admin

    Hi @Chelsey . You'd have to add the 2.5% manually every 15 days. Because the invoice can be edited at anytime, it will automatically display the new amount in the invoice when your customer reopens it. You can also always add an additional 2.5% fee on top of the previous, or just change the product to display 5%, whatever you think works best for you.

    edited October 7, 2019
  • schwinn160schwinn160 Member Posts: 1

    @AlexL the whole point of using a tool like Wave is to avoid manually emailing invoices and creating them from scratch. :smile:

    Seriously though, this would be incredibly valuable for my business because I don't have the time to go in manually and add fees manually to each invoice on a regular basis. And if I had a bookkeeper to do the work I wouldn't need Wave to help me keep it all together.

    I do not bill monthly or on a regular basis most of the time, so I would have to be in the system several times a month to do this for each individual invoice which would be a pain. Even a basic set of rules or options on this would be relatively simple to implement.

    Example:
    x% interest charges after y days of not being paid. Let the customer pick those variables or have a preset selection of options to keep it simple like you do with payment terms now (net 30, etc.)

    The plus side: Wave gets a bump (admittedly small, but a bump nonetheless) in revenue too if someone pays a late payment with the interest accrued via a card or bank payment. Not all product suggestions have revenue potential for you guys as a business but this one has at least some positive impact.

  • RobynERobynE Member Posts: 1

    I'd like to reiterate all of the above comments. Having a built in late fee feature would be immensely useful, and honestly something that most other accounting services offer.
    As someone else in this thread pointed out, when you manually add in that fee, it gives the clients that are late on payments the ability to push back. When it's built in and an automatic feature it makes it easier to say "not possible to change, that's how much you owe me."

    Please make this a priority to add as a feature to your product.

  • ConnorMConnorM Member, Administrator Posts: 193 admin

    Hey @RobynE. Thanks for your input and offering your context as far as the impact this feature would have on your business. @schwinn160, that suggestion as far as the revenue bump as well is something to consider for sure! We do not have plans to include this feature on the platform in the near future, but your input does not go unnoticed, so we thank you for that!

  • ChelseyChelsey Member Posts: 2

    HI,
    Will this work for recurring invoices as well?

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